- During the quarter, DBS’s net profit rose to 2.63 billion Singapore dollars ($1.94 billion), compared to 2.24 billion Singapore dollars a year ago.
- The Singapore bank also declared a third-quarter dividend of 48 Singapore cents for each ordinary share.
- “We delivered record profit in the third quarter as net interest margin continued to grow and commercial book non-interest income growth continued,” said Piyush Gupta, CEO of DBS.
DBS Hong Kong Branch.
Budrul Chukrut | SOPA images, LightRocket | Getty Images
Southeast Asia’s largest lender DBS Group reported a 17% jump in third-quarter profit on Monday, benefiting from a high interest rate environment.
During the quarter, net profit rose to 2.63 billion Singapore dollars (US$1.94 billion). 2.24 billion Singapore dollars a year ago.
It was higher than analyst estimates compiled by LSEG, which forecast a quarterly profit of 2.5 billion Singapore dollars for the July-September quarter.
The Bank of Singapore In addition, a dividend of 48 Singapore cents for each ordinary share was declared for the third quarter.
The company’s shares rose 0.75%.
Net interest margin, a measure of lending profitability, was 2.19% in the third quarter, up from 1.90% in the same period last year.
“We delivered record profit in the third quarter as net interest margin continued to grow and commercial book non-interest income growth continued,” said Piyush Gupta, CEO of DBS.
“As we enter the year ahead, higher and longer-term higher interest rates will have a positive impact on earnings, while our solid balance sheet with ample liquidity, prudent general reserves and healthy capital ratios will provide us with strong buffers against macroeconomic uncertainties,” Gupta added.
DBS, Singapore’s largest bank, ranked second among the country’s top lenders.
Smaller rival United Overseas Bank posted a 1% drop in third-quarter net profit in October, falling short of analysts’ expectations.
Oversea-Chinese Banking Corporation is scheduled to report quarterly results on November 10.