SINGAPORE: DBS Group expects to report higher profit before allowances next year after Southeast Asia's largest bank beat estimates with a 31 per cent rise in quarterly net profit, aided by growth in fee income and improving asset quality.
Friday's (Nov 5) result rounded up a strong quarter for Singapore banks such as OCBC and United Overseas Bank, in line with global lenders strengthening their recovery in markets hit by the COVID-19 pandemic and amid improved economic activity.
"A progressive normalisation of interest rates in the coming quarters will be beneficial to earnings," DBS Chief Executive Officer Piyush Gupta said in a statement. "Asset quality continues to be resilient and total allowances are likely to remain low," he said.
DBS reported a quarterly net profit of S$1.7 billion for the July to September period versus S$1.30 billion from a year earlier and the S$1.57 billion average forecast from four analysts compiled by Refinitiv.
The bank wrote back credit allowances of S$70 million in the quarter, helping boost profits, compared with credit charges of S$554 million booked in the year-ago period.
Profit before allowances fell 7 per cent to S$1.89 billion in the quarter. DBS' net interest margin, a key gauge of profitability, dipped to 1.43 per cent from 1.53 per cent a year earlier.
Singapore, rebounding from last year's record recession, is beginning to reopen its borders with 84 per cent of its population fully vaccinated against COVID-19.
The city-state's economy is expected to grow 6 to 7 per cent this year.
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Friday's (Nov 5) result rounded up a strong quarter for Singapore banks such as OCBC and United Overseas Bank, in line with global lenders strengthening their recovery in markets hit by the COVID-19 pandemic and amid improved economic activity.
"A progressive normalisation of interest rates in the coming quarters will be beneficial to earnings," DBS Chief Executive Officer Piyush Gupta said in a statement. "Asset quality continues to be resilient and total allowances are likely to remain low," he said.
DBS reported a quarterly net profit of S$1.7 billion for the July to September period versus S$1.30 billion from a year earlier and the S$1.57 billion average forecast from four analysts compiled by Refinitiv.
The bank wrote back credit allowances of S$70 million in the quarter, helping boost profits, compared with credit charges of S$554 million booked in the year-ago period.
Profit before allowances fell 7 per cent to S$1.89 billion in the quarter. DBS' net interest margin, a key gauge of profitability, dipped to 1.43 per cent from 1.53 per cent a year earlier.
Singapore, rebounding from last year's record recession, is beginning to reopen its borders with 84 per cent of its population fully vaccinated against COVID-19.
The city-state's economy is expected to grow 6 to 7 per cent this year.
Continue reading...