SINGAPORE, May 2 — DBS Group Holdings, Singapore’s biggest lender, beat market expectations by reporting stable quarterly profit today, underpinned by a record performance in its wealth management business.
Chief executive Piyush Gupta has rapidly expanded wealth management operations, helped by medium-sized acquisitions, while the broader outlook for Singapore banks remains cautious as lenders struggle with their exposure to the stressed oil and gas services sector.
DBS reported net profit of S$1.21 billion (RM3.76 billion) in January-March versus S$1.20 billion a year earlier and compared with an average forecast of S$1.09 billion from four estimates compiled by Reuters. Total income was up 1 per cent.
“Our business pipeline is healthy, consistent with the recent improvement in economic data for key markets,” Gupta said in a statement.
“While asset quality pressures appear to be moderating, we remain vigilant to continued headwinds in the oil and gas support services sector.”
Net fee and commission income rose 16 per cent, driven by a 26 per cent jump in wealth management fees to a quarterly record of S$222 million and gains in transaction services and investment banking fees.
The bank’s net interest income was unchanged at S$1.83 billion as the impact of softer Singapore-dollar interest rates was offset by higher loan volumes. — TODAY
