By Martin Mou
DBS Group Holdings Ltd. (D05.SG) reported its third-quarter results on Monday. Here is what we watched:
NET PROFIT: The group posted a net profit of 1.63 billion Singapore dollars (US$1.20 billion) for the quarter, 15% higher from a year earlier. The results beat a consensus estimate from FactSet, which forecast net profit at S$1.55 billion.
TOTAL INCOME: Total income was up 13% on year at S$3.82 billion, which also exceeded the estimated S$3.62 billion by the FactSet poll.
WHAT WE WATCHED:
--NET INTEREST INCOME: In the third quarter, the Singapore-based bank's net interest income grew 8% on year to S$2.46 billion on improved lending volume and margin. Loans rose 4% to S$353 billion, led by non-trade corporate loans across the region, while net interest margin rose four basis points to 1.90%.
--NET FEE INCOME: Net fee income also grew 17% to S$814 million from broad-based growth. The bank's wealth-management fees increased 22% to S$357 million from higher investment-product sales, while card fees grew 9% to S$202 million from increased transactions across the region.
--NON-PERFORMING ASSETS: Non-performing assets rose 2% from the previous quarter to S$5.94 billion due largely to foreign-currency effects, but the non-performing loan rate was unchanged at 1.5% as new non-performing loan formation was moderated by recoveries and write-offs.
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