DBS net profit up 8% for Q2
DBS Group Holdings' net profit including one-time items went up 8 per cent to S$1.13 billion for its second quarter compared to a year ago, as continued business momentum was offset by lower net interest margin, trading income and gains on investment securities.
Total income remained flat at S$2.92 billion.
Net interest income went up 3 per cent to S$1.89 billion while net interest margins - the difference between interest income generated and the amount of interest paid to lenders - was 1.74 per cent, down from 1.87 per cent due to lower Singapore dollar interest rates.
Loans rose 5 per cent to S$302.97 billion in constant currency a year ago from broadbased growth.
Net fee income rose one per cent year-on-year to S$636 million, led by an increase in annuity fee income streams from a double-digit growth in wealth management, but was offset by a decline in investment banking and loan-related fees.
Other non-interest income fell 13 per cent from a year ago to S$400 million from lower trading income and income on investment securities, as well as an absence of gains on fixed assets.
Expenses declined one per cent to S$1.27 billion as ongoing digitalisation and productivity initiatives yielded cost savings.
Non-performing assets rose marginally from the previous quarter to S$4.85 billion as non-performing loan formation was offset by write-offs and recoveries. The non-performing loan rate went up by 1.5 per cent.
For the first half of 2017, an interim one-tier tax-exempt dividend of 33 Singapore cents for each ordinary share was declared, up 10 per cent from the 30 Singapore cents declared for first half 2016.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
A$90 billion Australia pension reviews investments as Israel-linked firms face pressure
JPMorgan says India index inclusion on track, clients ready
SoftBank sells off Vision Fund assets as Son pivots to AI, chips
Gold set for best week in five on renewed US rate-cut hopes
Cordlife substantial shareholders lay out separate plans to address issues after AGM
Hin Leong founder OK Lim found guilty of 3 criminal charges of cheating, forgery