DBS Group reported Monday its net profit for the fourth quarter grew 37 percent from a year earlier to S$1.39 billion, missing a forecast from a Reuters poll of four analysts.
The miss came despite total allowances tumbling after repayments of what the bank called two significant non-performing loans in the quarter.
But all of that wasn’t enough to overcome the negative impact of interest rate cuts early in the pandemic and the exceptional investment gains afterward when markets posted a stunning recovery.
Looking ahead, DBS CEO Piyush Gupta said the bank was set to benefit from rising interest rates.
2021 Rebound
For the full year, DBS recorded a net profit of S$6.8 billion ($5.1 billion) in 2021, marking a 44 percent increase.
While total income was down 2 percent to S$14.3 billion and expenses were up 5 percent to S$6.5 billion, allowances for bad loans and other losses plunged 98 percent to just S$52 million.
