Monday, November 2, 2015

DBS posts 6% increase in 3Q earnings to $1.07 billion

DBS Group recorded 6% y-o-y increase in 3Q earnings to $1.07 billion.

Total income rose 8% to $2.71 billion as net interest income increased 13% to $1.81 billion.

Loans grew a reported 9% to $285 billion.

In constant-currency terms, loans rose 3% as an 8% increase in consumer and non-trade corporate loans was partially offset by a decline in trade loans.

Net interest margin increased ten basis points to 1.78%, the highest since 2Q2011.

Net fee income fell 7% to $517 million due to a high base for investment banking fees a year ago. Fees for loan-related activities, cards and stockbroking were higher.

Other non-interest income rose 7% to $382 million. Trading income was 6% higher at $286 million as higher corporate customer activities were partially offset by the funding valuation adjustment charge of $50 million. There was also a gain of $43 million from the sale of properties in Hong Kong.

Meanwhile, the group’s asset quality remained healthy. The non-performing loan rate was unchanged from recent quarters at 0.9% while allowance coverage was maintained around historical highs at 161%.

The liquidity coverage ratio during 3Q was 121% above the final regulatory minimum of 100%, effective 2019. The net stable funding ratio was also above the requirement due in 2018.

“In a quarter marked by slower regional growth and intense market volatility, the bank’s earnings continued to hold strong,” says DBS CEO Piyush Gupta.

DBS shares closed 0.35% lower at $17.27 on Oct 30.

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