DBS Posts 7% Fall in Profits

Singaporean lender DBS reported a 7% YoY fall in Q2 2022 net profits to S$1.8bn ($1.3bn). Total income rose 7% YoY to S$3.8bn ($2.8bn), of which, net interest income rose 17% to S$2.45bn ($1.8bn), while net fee income fell 12% to S$768mn ($556mn) due to weaker market conditions. Cost-to-income ratio improved by 70bp YoY to 43.7%, while provisions declined 42% YoY to S$46mn ($33mn). The lender’s net interest margin also improved 13bp YoY at 1.58%. Its NPL ratio stood at 1.3%, down 20bp YoY. The board declared a dividend of S$0.36/share ($0.26) with an estimated dividend payable of $926mn. DBS CEO Piyush Gupta said, “The bank’s net interest margin rose for the first time in three years and accelerated in the second quarter, while business momentum and asset quality were sustained.” The bank’s CET1 ratio was down 30bp YoY to 14.2%.

DBS’s SGD 3.98% Perp was down 0.12 points to 100.00.