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Earnings

DBS Group second-quarter profit jumps 17%, beating expectations

Key Points
  • DBS Group Holdings, Southeast Asia's biggest lender, beat market estimates by reporting a 17% increase in second-quarter profit, supported by a rise in net interest income.
  • Its net profit came in at S$1.6 billion ($1.2 billion) in the three months ending June, beating an average estimate of S$1.47 billion from three analysts, according to data from Refinitiv.
  • Analysts say the outlook for banks is getting challenging, with Singapore's economy growing at its slowest annual pace in a decade in the second quarter, hit by a drop in manufacturing output and exports.
Singapore's DBS is Southeast Asia's largest bank.
Edgar Su | Reuters

DBS Group Holdings, Southeast Asia's biggest lender, beat market estimates by reporting a 17% increase in second-quarter profit, supported by a rise in net interest income.

The Singaporean bank's net profit came in at 1.6 billion Singapore dollars ($1.2 billion) in the three months ending June, versus 1.37 billion Singapore dollars a year earlier and an average estimate of 1.47 billion Singapore dollars from three analysts, according to data from Refinitiv.

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Analysts say the outlook for banks is getting challenging, with Singapore's economy growing at its slowest annual pace in a decade in the second quarter, hit by a drop in manufacturing output and exports.

DBS, the first Singaporean bank to kick off the sector's results, maintained its mid-single-digit percent loan growth forecast for the full year.

The bank's net interest income rose by 9% in the latest quarter as loans grew 5% in constant-currency terms and net interest margin, a key gauge of profitability, improved six basis points to 1.91%.