DBS recorded its second best quarter ever by profits, driven by improved interest income from rapidly rising rates.
Net profit at DBS rose 7 percent to S$1.82 billion ($1.32 billion) for the second quarter, according to its latest results, marking the second highest level in the Singaporean bank’s history.
While net fee, commission and other non-interest income fell, this was offset by a 17 percent rise in net interest income to S$2.45 billion. This was driven in large part by a 12 basis point rise in net interest margin to 1.58 percent due to the impact of rising rates. Operating expenses climbed by 7 percent to S$1.66 billion while allowances for credit and other losses nearly halved to S$46 million.
Overall, the bank registered S$3.62 billion in first half profits, down 3 percent as lending gains were offset by lower wealth management fees due to weaker market conditions and moderated treasury markets income.
«While the macroeconomic outlook remains uncertain, we will benefit from rapidly rising interest rates and have proven nimble in capturing business opportunities,» said DBS chief executive Piyush Gupta. «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.»
