DBS shares soar more than 3.8% to hit a record high, after posting earnings that beat forecasts

[SINGAPORE] Shares of DBS rocketed more than 3 per cent on Thursday (Nov 6), after the bank posted net profit that beat analyst forecasts.

The stock soared to S$54.68 at about 9.11 am, from DBS’ closing price of S$53.50 on Wednesday.

At around 9.15 am, the stock reached S$55.10, according to ShareInvestor data, compared to its last record of S$54.80 at close on Oct 7.

The counter was trading at S$55.38 at 1.07 pm, around 3.4 per cent higher, shortly after the mid-day break.

It then hit a record-high of S$55.55 at 1.13pm, which would be a S$2.05 or 3.8 per cent increase.

The lender reported 2 per cent lower net profit for the third quarter ended Sep 30 at S$2.95 billion, compared with S$3.03 billion in the year-ago period. It beat the S$2.79 billion consensus forecast in a Bloomberg survey of six analysts.

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Total income reached a new high of S$5.93 billion, although net profit was down due to the impact of the global minimum tax, DBS said.

According to a note from Citi, DBS’ Q3 results beat consensus estimates by 8 per cent, driven by a 23 per cent quarterly surge in wealth management fees and a S$32 billion influx of new client assets.

Citi highlighted the bank’s “robust” asset quality, with new bad loans from corporate clients falling to a “multi-year low”.

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DBS Q3 profit down 2% at S$2.95 billion; beats expectations

DBS has hit multiple highs this year, and the new record continues a rally that has seen the stock climb nearly 25.8 per cent in the year to date.

In June, DBS became the first listed company in Singapore to cross the US$100 billion market capitalisation milestone, supported by a weaker US dollar.

The counter closed at S$55.54, S$2.04 or 3.81 per cent up on Thursday.