Singapore-based DBS saw net profit rise 43 percent to a record high in the first quarter of 2023.
DBS posts a record-high net profit of S$2.57 billion ($1.92 billion) in the first quarter of 2023, according to the bank’s results, up 43 percent year-on-year.
Return on equity increased to 18.6 percent, also marking a new high.
Higher Interest Margin
Total income grew 34 percent to S$4.94 billion due in large part to sustained business momentum and higher net interest margin, which rose 66 basis points (bps) to 2.12 bps.
As a result, net interest income surged 69 percent to S$3.38 billion. Net fee and commission income fell 4 percent to S$851 million while other non-interest income climbed 22 percent to S$432 million.
Stable Expenses
Expenses in the first quarter rose 14 percent to S$1.88 billion due to higher staff costs. While allowances for credit and other losses nearly tripled to S$161 million, the non-performing loan ratio stayed stable at 1.1 percent.
The bank's board declared a dividend of S$0.42 per share for the quarter.
«We delivered a record performance and benefited from safe haven deposit inflows during a quarter marked by increased market volatility,» said DBS CEO Piyush Gupta. «Our ability to sustain business momentum as well as customers’ trust in a time of market stress are the result of our solid capital position, prudent risk management, diversified business lines and nimble execution, underpinned by an ongoing digital transformation.»
