DBS Q1 net profit edges up

DBS Bank in Bedok Central. The group raised earnings to record levels in the first quarter because of good performances by businesses such as wealth management. DBS' net profit of $1.21 billion beat the average forecast of $1.09 billion by Reuters an
DBS Bank in Bedok Central. The group raised earnings to record levels in the first quarter because of good performances by businesses such as wealth management. DBS' net profit of $1.21 billion beat the average forecast of $1.09 billion by Reuters and set a new benchmark for quarterly earnings.ST PHOTO: JAMIE KOH

DBS Group Holdings lifted earnings to record levels in the first quarter, thanks to good performances by businesses such as wealth management.

Net profit inched up 1 per cent to $1.21 billion, beating the average forecast of $1.09 billion by Reuters and setting a new benchmark for quarterly earnings.

If one-time items - such as a gain of $350 million from selling PwC Building - were included, net profit was $1.25 billion for the three months to March 31.

Total income also increased 1 per cent to $2.89 billion, compared with the same period a year ago.

Net interest income was stable at $1.83 billion while net interest margins - the difference between interest income generated and the amount of interest paid to lenders - was 1.74 per cent, down from 1.85 per cent.

Quarterly loans rose 7 per cent to $298 billion in constant currency terms as corporate, trade and Singapore housing loans grew.

  • AT A GLANCE

  • TOTAL INCOME: $2.89 billion (+1%)

    NET PROFIT: $1.21 billion (+1%)

Net fee and commission income rose 16 per cent to $665 million, led by "a 26 per cent increase in wealth management fees to a quarterly high of $222 million from stronger sales of unit trusts and other investment products".

But other non-interest income fell 15 per cent to $390 million, partly owing to lower trading gains.

Quarterly earnings per share excluding one-time items was $1.90, compared with $1.92 a year ago, while net book value was $17.37 a share, compared with $16.39 a year earlier. DBS shares closed 51 cents higher at $19.86 yesterday, following the results briefing.

Rachael Boon

A version of this article appeared in the print edition of The Straits Times on May 03, 2017, with the headline 'DBS Q1 net profit edges up'. Print Edition | Subscribe