Tuesday, May 3, 2016

DBS shares outperforming STI on record 1Q core earnings

Shares of DBS Group Holdings are outperforming the broader Singapore stock market.

As at 11.14am, the stock is up 0.79% at $15.40, compared to a 0.77% fall in the benchmark Straits Times Index.

Singapore’s largest lender announced earnings of $1.2 billion for the first quarter of 2016, down 5% from a year ago.

But excluding the one-time items of about $136 million related to the gain from disposal of a property investment a year ago, the earnings were a record and 6% higher. Total income also reached a new high, rising 5% to $2.87 billion as net interest income grew 8% to $1.83 billion.

DBS also said that its balance sheet remains strong, even as its non-performing loan rate rose slightly to 1% in the first quarter compared with the previous quarter.

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