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Hot stock: DBS climbs in trading on Tuesday after 6% rise in Q1 core earnings

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SHARES in DBS Group climbed to an intra-day high of S$15.68 in trading on Tuesday after the group released its first quarter financial results before the market opened.

At 2.20 pm, the counter was 11 cents higher at S$15.39, with some 4.61 million shares changing hands. The counter eventually closed seven cents higher at S$15.35, with some 7.17 million shares changing hands. 

DBS' net profit for Q1FY16 slipped 5 per cent to S$1.20 billion, but excluding one-time items of about S$136 million related to disposal gains of a property investment in the year prior, earnings were actually 6 per cent higher. Quarter on quarter, net profit was also an improvement, rising 20 per cent from higher non-interest income and a lower cost-income ratio.

Meanwhile, total income also reached a new high, rising 5 per cent to S$2.87 billion as net interest income grew.

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Net interest income rose 8 per cent to S$1.83 billion, while net interest margin improved 16 basis points to 1.85 per cent in line with higher Singapore dollar interest rates.

Net fee income rose 3 per cent to a new high of S$574 million, led by growth in cards and wealth management but other non-interest income fell 7 per cent to S$458 million as financial market volatility affected treasury customer flows.