A five-fold surge in allowances primarily focused on coronavirus-linked risks drove net profits at DBS to tumble 26 percent in the first half.
DBS Group posted a net profit of S$2.41 billion ($1.76 billion) in the first half of 2020, a 26 percent year-on-year drop, according to a statement. This was driven largely by a five-fold increase of total allowances which reached S$1.94 billion of which S$1.26 billion has been «conservatively set aside to fortify the balance sheet against risks arising» from the ongoing pandemic.
Singapore bank’s ex-allowance profits increased 12 percent and reached a record S$4.71 billion driven in part by a 7 percent income rise to S$7.75 billion.
«Our solid balance sheet was further fortified by a significant increase in allowance reserves, strong liquidity inflows and healthy earnings,» said DBS CEO Piyush Gupta. «Notwithstanding the uncertainties, we are in a good position to continue supporting customers and the community through the difficult months ahead of us.»
