DBS profit rises 15pc to S$1.63b

SINGAPORE: DBS Group Holdings reported that higher wealth management fees drove a forecastbeating 15 per cent rise in thirdquarter profit, but cautioned growth will slow next year on lower interest rates.

The Singaporean bank said yesterday it expected its net interest margin, a key gauge of profitability, to fall by about seven basis points next year.

DBS made a net profit of S$1.63 billion (RM4.97 billion) for the quarter, compared with S$1.41 billion a year earlier and an average estimate of S$1.57 billion from five analysts, Refinitiv data showed.

Net interest income rose eight per cent to S$2.46 billion in the quarter and wealth management fees jumped 22 per cent to S$357 million.

DBS’ revenue and profit growth would be in the low single digits next year, while fee and commission income should continue to expand in double digits, said chief executive officer Piyush Gupta.

“Next year is going to be lower growth just because the interest rate impact on our book is going to filter through.”

DBS said it also made extra allowances of S$61 million given “ongoing political and economy uncertainty”.

It added that the performance of its business in Hong Kong was “resilient”, but reported a 13 per cent decline in net profit from its operations there compared to the second quarter because of higher allowances and weaker trading income.