The strong growth in loans boosted the group's income.
The robust loan growth recorded by DBS in the past quarter has resulted into its total income reaching nearly a quarter high in Q2 and therefore boosting its net profit.
The group said in a statement that its total income hit $2.92b as loans grew 2% and fee income trends were sustained. This contributed to the 8% increase in its net profit to $1.4b.
Its net interest income was 3% higher than a year ago at $1.89b. Loan growth of 6% more than offset the impact of a 13 basis point decline in net interest margin to 1.74%.
DBS's net fee income saw a 1% growth to $636m. An increase in annuity fee income streams, led by double-digit growth in wealth management, was offset by a decline in investment banking and loan-related fees. Other non-interest income fell 13% to $400m.
For the first half-year, its net profit went up 4% higher to $2.35b, as total income reached half-year high of $5.81b.
During the first six months, its net interest income increased 1% to SGD 3.72b, with loans growing 6% to $303b. The strong lending was apparent in areas such as corporate, trade, consumer and Singapore housing.
Meanwhile, its net fee income rose 8% to $1.3b. The group's wealth management fees increased significantly to $467m from higher sales of unit trusts and other investment
Additionally, the higher trade finance and cash management income resulted in a 7% increase in transaction service fees to $311m. Card fees also grew from increased credit card transactions in Singapore and Hong Kong.
Partially offsetting the growth in these activities were an 18% decline in investment banking fees from lower equity underwriting and a 5% fall in loan-related fees.
On the other hand, the group's other non-interest income fell 14% to $790m due to lower trading gains.
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