DBS reports first-half net profit of $3.63 billion
5 min read
DBS reported net profit of SGD 3.62 billion ($3.63 billion) and return on equity of 13.3% for first-half 2022. Business momentum was broadly sustained in the first six months of the year while net interest margin rose after three years of decline.
The gains in the first half were offset by lower wealth management fees due to weaker market conditions and a moderation in Treasury Markets income from the previous year’s high.
For the second quarter, net profit rose 7% from a year ago to SGD 1.82 billion, the second highest in history. Total income grew 6% to SGD 3.79 billion. Net interest income increased 17% boosted by an accelerated increase in net interest margin, more than offsetting an 11% decline in non-interest income due to weaker market conditions. Asset quality continued to be resilient with specific allowances at eight basis points of loans. Compared to the previous quarter, net profit rose 1%.
DBS CEO Piyush Gupta said, “We continued to deliver strong financial performance in the first half despite challenging financial market conditions. Net interest margin rose for the first time in three years and accelerated in the second quarter, while business momentum and asset quality were sustained. While the macroeconomic outlook remains uncertain, we will benefit from rapidly rising interest rates and have proven nimble in capturing business opportunities. The income growth will improve the cost-income ratio in the coming quarters even as we judiciously invest for the future. Our ongoing stress tests indicate that asset quality continues to be robust.”
Re-disseminated by The Asian Banker
by : on 2022-08-05 01:16:00
#DBS #reports #firsthalf #net #profit #billion