Singapore-based lender DBS has reported a net profit of SGD1.14bn for the second quarter of 2017, a rise of 8% compared to SGD1.05bn in the year ago period.
Pre-tax profit for the period ended 30 June 2017 stood at SGD1.35bn, an increase of 7% over SGD1.27bn reported in the second quarter of 2016.
The bank’s quarterly total income remained almost unchanged at SGD2.92bn. Net interest income increased 3% to SGD1.89bn from SGD1.83bn, while net fee and commission income rose 1% year-on-year to SGD636m.
Expenses for the period were SGD1.27bn, a fall of 1% from SGD1.28bn in the previous year.
The bank’s consumer banking /wealth management arm reported pre-tax profit of SGD469m for the second quarter of 2017, up 3% compared to SGD456m in the year ago period.
The division’s total income increased 6% to SGD1.14bn from SGD1.07bn the last year. Pre-tax profit at the bank’s institutional banking unit surged 83% to SGD521m from SGD284m a year earlier, while total income dipped 3% year-on-year to SGD1.29bn.
DBS CEO Piyush Gupta said: “We achieved strong operating performance in the first half and the business pipeline remains healthy, in line with general economic trends in our key markets. Asset quality pressures will continue and the risk of heightened credit costs in the oil and gas support services sector will persist with low oil prices. “The 10% increase in dividends reflects the Board’s confidence in the quality of our earnings and our balance sheet, in particular the strong capital buffers we have built up.”