DBS shares soar more than 3% to hit a record high, after posting earnings that beat forecasts
Lender’s Q3 net profit is S$2.95 billion – higher than the S$2.79 billion estimated in survey
[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 a record high of S$55.38 at 1.07 pm, around 3.4 per cent higher, shortly after the mid-day break.
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.
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.
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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”.
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.
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