The DBS Building, Singapore’s largest bank, is in the state’s central business district.
Al-Suhaimi Abdullah | Getty Images News | Getty Images
SINGAPORE – Singapore’s largest bank, DBS Group Holdings, reported third-quarter earnings that beat analyst estimates, with its chief executive citing improving business conditions in the coming months.
The bank on Friday reported net profit of S$1.7 billion ($1.26 billion) in the July-September period — up 31% from a year ago and beating the median forecast of S$1.57 billion on Refinitiv.
DBS shares were up 0.3% in early trading on Friday. The stock is up 28.6% this year as of Thursday’s close, outpacing the Straits Times benchmark’s 13.2% gain in the same period.
“A gradual normalization of interest rates in the coming quarters will be beneficial to earnings,” DBS CEO Piyush Gupta said in a statement.
Here are some other highlights of the bank’s third quarter earnings:
- The bank has returned S$70 million in provisions – previously set aside for potential loan losses – as the economic recovery continues.
- Net interest margin, a measure of lending profitability, was down 2 basis points from the previous quarter at 1.43% due to lower short-term interest rates.
- The Board of Directors of DBS announced a quarterly dividend of 33 Singapore cents per share.
The release of DBS Bank’s financial results brought the reporting season to a close for Singapore’s largest banks.
Earlier this week, the other two banks – Oversea-Chinese Banking Corporation and United Overseas Bank – reported third-quarter earnings that beat expectations.
OCBC’s net profit rose 19% from a year ago to S$1.22 billion (US$904.5 million), while UOB reported a 57% increase in net profit to S$1.05 billion in the same period.