SINGAPORE: DBS Group Holdings Ltd , Singapore's biggest lender, reported an eight per cent rise in quarterly profit that came in line with market expectations, powered by a robust increase in its net interest margin.
Fourth-quarter earnings increased to S$1.32 billion versus S$1.22 billion a year earlier.
AdvertisementThe net profit for 2018 rose 28 per cent to S$5.63 billion while total income grew 6 per cent to S$3.25 billion as sustained loan growth and net interest margin progression over the quarter were moderated by a decline in Treasury Markets income.
Return on equity rose more than two percentage points to 12.1 per cent, the highest in a decade. according to DBS.
DBS CEO Piyush Gupta said: “Return on equity of 12.1 per cent was near the historical high of 2007, when interest rates were twice the levels today and capital requirements less stringent.
"The structural improvements we have made to the profitability of our franchise – a shift towards higher-returns businesses, deeper customer relationships and more nimble execution – put us in good stead to navigate the challenges of the coming year.”
AdvertisementAdvertisementSingapore banks have benefited from strong loans growth in the last few years, but are gearing up for tougher times as economies in the region are under pressure, partly due to a trade war between China and the United States.
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