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.