Rising rates boosted interest margins, enabling DBS to register a record profit for the third quarter.
DBS posted S$2.24 billion ($1.58 billion) in net profit for the third quarter, according to a release of its financial results, up 32 percent year-on-year, marking a new record.
Total income grew 28 percent to S$4.54 billion, driven by a 47 basis point increase in net interest margin that led to a 44 percent increase in net interest income. Net fee and commission income fell 13 percent to S$771 million as lower wealth management and investment banking fees were partially offset by higher card and loan-related fees. Other non-interest income rose 32 percent to S$753 million.
Expenses rose 9 percent to S$1.83 billion due largely to higher staff costs.
Year-To-Date: New High
In the first nine months of 2022, DBS registered a net profit of S$5.85 billion – a new high – up 8 percent year-on-year. Total income grew 10 percent to S$12.08 billion due to a 22 percent increase in net interest income while expenses climbed 7 percent to S$5.13 billion.
«The record earnings we achieved amidst challenging market conditions in the third quarter reflected the strength of our franchise,» said DBS chief executive Piyush Gupta.
«We enter the coming year with leverage to rising interest rates, a strong balance sheet and proven ability to capture growth, which will enable us to continue delivering shareholder returns.»
