Momentum working at DBS Group

IF you're looking for one word to describe the force that was propelling DBS Group Holdings in the second quarter amid a challenging time, that one word is momentum.

Despite taking a S$150 million hit for its S$721 million exposure to the troubled offshore & marine services provider Swiber, DBS boasts a higher-than-expected net profit of $1.05 billion for the April-June quarter.

Firing on all cylinders, Singapore's largest banking group achieved an 8 per cent rise in total income to a new high of S$2.92 billion, outpacing cost growth of 6 per cent.

"Business momentum picked up during the quarter as loans rose 4 per cent over the three months while net fee income climbed to a record," it said.

Half of the increase was in Singapore from corporate loan growth and market share gains in housing loans. Trade loans also rose 8 per cent, reversing several quarters of contraction. The bank booked S$3.4 billion in new home loans during the quarter, a record high since 2012 while trade loans from agricultural sector picked up as prices ros…