The building of DBS, Singapore’s largest bank, at the city state’s central business district.

Suhaimi Abdullah | Getty Images News | Getty Images

SINGAPORE — Singapore’s largest bank, DBS Group Holdings, posted third-quarter earnings that beat analysts’ estimates as its chief executive flagged improving business conditions in the months ahead.  

The bank on Friday reported a net profit of 1.7 billion Singapore dollars ($1.26 billion) for the July to September quarter — 31% higher than a year ago and exceeding an average forecast of 1.57 billion Singapore dollars on Refinitiv.   

DBS shares were up 0.3% in early trade on Friday. The stock has climbed 28.6% this year as of Thursday’s close, beating the benchmark Straits Times Index‘s gains of 13.2% in the same period.

“A progressive normalisation of interest rates in the coming quarters will be beneficial to earnings,” DBS CEO Piyush Gupta said in a statement.

Here are other highlights of the bank’s third-quarter earnings:

  • The bank wrote back 70 million Singapore dollars in allowances — previously set aside for potential loan losses — as economic recovery continues.
  • Net interest margin, a measure of lending profitability, was two basis points lower than the previous quarter at 1.43% due to lower short-term interest rates.
  • The DBS board declared a quarterly dividend of 33 Singapore cents per share.  

The release of DBS’ financial results rounded up the reporting season for Singapore’s top banks.

Earlier this week, the other two banks — Oversea-Chinese Banking Corp and United Overseas Bank — also reported third-quarter earnings that beat expectations.  

OCBC‘s net profit rose 19% from a year ago to 1.22 billion Singapore dollars ($904.5 million), while UOB reported a 57% rise in net profit to 1.05 billion Singapore dollars in the same period.



Source link

Check Also

Honduras holds presidential elections after difficult year for the country

Honduras, one of the poorest and most corrupt countries in the Americas, is holding presid…