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Update: DBS' Q3 net profit up 17% on broad-based growth
DBS Group on Friday said its net profit for the third quarter ended Sept 30, 2014 was at S$1.01 billion, up 17 per cent from S$862 million a year ago.
The net profit was 4 per cent higher than the previous quarter's, and beat the S$975 million average of four analysts' estimates compiled by Bloomberg.
DBS CEO Piyush Gupta said, "Despite some slowdown in the region, we continued to see very strong earnings momentum in the third quarter, fuelled by broad-based growth across businesses.''
Total income rose 17 per cent to a record S$2.51 billion as net interest income and fee income reached new highs while trading income improved.
For the nine months, net profit rose to a record S$3.21 billion, including net one-time gains of S$198 million, mainly from the sale of BPI.
Excluding the gains, net profit rose 12 per cent to S$3.01 billion. The performance was underpinned by higher net interest income and fee income as well as lower allowance charges.
In the third quarter, net interest income rose 14 per cent from a year ago to S$1.60 billion. Loans grew 8 per cent or S$20 billion to S$262 billion from regional corporate borrowing and secured consumer loans. Non-interest income grew 23 per cent to S$912 million on broad-based gains.
DBS said its non-performing loan rate was unchanged from the previous quarter at 0.9 per cent. The allowance coverage of non-performing assets was little changed at 160 per cent and at 324 per cent if collateral was considered.
Capital ratios remained comfortably above regulatory requirements, with Common Equity Tier 1 at 13.4 per cent, Tier 1 at 13.4 per cent and total adequacy ratio at 15.6 per cent.
Going forward, the bank expects its acquisition of Societe Generale Private Banking Asia earlier this month to further bolster its wealth franchise.