DBS net profit leaps by 15% to $1.1b in Q2

The bank dodged a looming loan threat.

Analysts expected a flattish trend in DBS' loan growth coupled with a soft quarter for trading income, but the bank's quarterly results made it escape the situation unscathed.

The 15% growth was proof that the bank's Hwang Capital sell-off was a good move as their SGD39M gain boosted lower associate contributions and consequently pushed operating revenue upwards.

“2Q operating revenue of S$2.7B, +16% YoY, was driven by higher net interest income and fee income offset by increase in provisions and lower associate contributions,” a report from Jefferies Singapore said.

Meanwhile, the net profit was relatively unchanged from last quarter, being down 1%, but rose marginally after the divestment of HK property.

“Net interest income rose 3% driven by a 1% increase in loans in constant-currency terms, 6 bps increase in margins and 5 ppt increase in LDR. Net fee income rose 4% QoQ driven primarily by capital market activities.” the report added.