Singapore’s DBS bank reports Q2 2021 earnings

DBS Group Holdings within the central enterprise district of Singapore.

Nicky Loh | Bloomberg | Getty Photographs

SINGAPORE — DBS Group Holdings, the most important financial institution in Singapore and Southeast Asia, reported on Thursday second-quarter earnings that beat expectations because the financial restoration in its residence market takes maintain.

The financial institution’s internet revenue for the April-to-June quarter jumped 37% from a 12 months in the past to 1.7 billion Singapore {dollars} ($1.26 billion). That beat a median forecast of 1.42 billion Singapore {dollars}, based on analyst estimates on Refinitiv.

However in contrast with the earlier quarter, internet revenue was 15% decrease.

DBS shares in Singapore rose round 0.6% in early commerce following the discharge of its monetary outcomes.

“Enterprise momentum and asset high quality have each been higher than anticipated because the financial restoration from the pandemic takes maintain,” the financial institution’s Chief Government Piyush Gupta mentioned in a press release.

“Whereas dangers stay, our pipeline stays wholesome and we count on enterprise momentum to be sustained within the coming quarters,” he added.

DBS introduced a dividend of 33 Singapore cents per share for the second quarter. That is a rise from 18 Singapore cents per share within the earlier quarter after the Financial Authority of Singapore lifted a cap on dividend payments.

Listed below are the opposite highlights from the earnings report:

  • The financial institution’s provisions for potential mortgage losses fell to 79 million Singapore {dollars} within the second quarter, in contrast with 849 million Singapore {dollars} a 12 months in the past.
  • Web curiosity margin, a measure of lending profitability, was 1.45% within the second quarter. That is decrease than 1.62% a 12 months in the past.
  • Buyer loans rose to round 397 billion Singapore {dollars} within the first six months of 2021, 6% increased than the identical interval final 12 months.

A day earlier than DBS launched second-quarter earnings, its smaller Singaporean friends — Oversea-Chinese Banking Corp and United Overseas Bank — reported monetary outcomes that beat estimates.

OCBC, Singapore’s second-largest financial institution, reported a 59% year-on-year enhance in internet revenue to 1.16 billion Singapore {dollars} within the second quarter. UOB’s internet revenue for the interval was round 1 billion Singapore {dollars}, 43% increased than a 12 months in the past.

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