SINGAPORE: DBS Group Holdings Ltd, Southeast Asia's biggest lender, reported a 20 per cent jump in net profit on Thursday (Aug 2), missing market expectations as the impact of business volume growth was moderated by lower trading income.
Singaporean banks reported record profits last year but the outlook for the sector has been clouded by curbs on property investment imposed last month and a slowdown in economic growth due to international trade tensions, analysts said.
AdvertisementDBS's net profit came in at S$1.37 billion in the three months ending June versus S$1.14 billion a year earlier, and an average estimate of S$1.47 billion from three analysts, according to Thomson Reuters I/B/E/S.
"Amidst heightened uncertainty and market volatility, business momentum was sustained in the second quarter," DBS CEO Piyush Gupta said in a statement.
DBS's net interest margin, a key gauge of profitability, increased 11 basis points to 1.85 per cent. DBS however eased its loan growth forecast to 6 per cent to 7 per cent for this year, from a previous estimate of 8 per cent.
The latest quarter's net profit was 10 per cent below the first-quarter's record due to the weaker trading performance and the absence of a property disposal gain, the bank said.
AdvertisementAdvertisementThe bank, about 29 per cent-owned by Singaporean state investor Temasek Holdings, kicks off the quarterly results reporting season for lenders in the regional financial hub.
United Overseas Bank reports results on Friday, followed by Oversea-Chinese Banking Corp next week.
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