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Singapore

DBS beats estimates with 15% profit jump to $1.63b for Q3; to pay out 30 cents per share dividend

SINGAPORE (REUTERS) - DBS Group Holdings, Singapore's and South-east Asia's Asia's biggest lender, reported on Monday (Nov 11) a forecast-beating 15 per cent rise in quarterly profit, supported by higher wealth management fees.

Net profit came in at $1.63 billion ($1.20 billion) in the three months ended Sept 30, compared with $1.41 billion a year earlier and an average estimate of $1.57 billion from five analysts, according to Refinitiv data.

Net interest income rose 8 per cent to $2.46 billion in the quarter, while net interest margin came in at 1.90 per cent. The company expects its margin to fall by about 7 basis points in 2020.

Singapore's banks face a challenging outlook as interest rates soften and lending moderates after robust growth in recent years.

Last week, peer Oversea-Chinese Banking Corp posted its weakest quarterly profit this year after booking a one-off charge at its Indonesian banking unit.

DBS's wealth management fees jumped 22 per cent to $357 million.

The lender also said it made extra allowances of $61 million given "ongoing political and economy uncertainty."

It added that the performance of its business in Hong Kong was "resilient", but reported a 13 per cent decline in net profit from the second quarter because of higher allowances and weaker trading income.

DBS has declared an interim dividend of 30 cents per share for the third quarter, unchanged from the previous quarter.

DBS CEO Piyush Gupta said, “The record operating results for the quarter once again attest to the strength of our business. Our transformed franchise, nimble execution and balance sheet strength will put us in good stead to deliver healthy shareholder returns despite the prevailing macroeconomic and geopolitical headwinds.” 

With additional information from The Straits Times

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