DBS beats expectations with S$1.2b Q1 earnings

Singapore

DBS Group Holdings on Tuesday posted a net profit of S$1.2 billion for the first quarter of 2016, down 5 per cent year on year due to the absence of a one-off item. By stripping out the one-off item, the bank's better-than-expected core earnings were up 6 per cent as it enjoyed higher margins from its massive low-cost deposit base and bancassurance business which helped cushion soft trading and a fall in loans.

The S$1.2 billion net profit beat an average forecast of S$1 billion from analysts polled by Reuters and Bloomberg. When compared against the previous quarter, net profit rose 20 per cent as a result of higher non-interest income and lower costs.