DBS Group 2Q Net Profit Rose 37% on Lower Allowances

By P.R. Venkat

DBS Group Holdings Ltd.'s second-quarter net profit rose 37% on year as the bank set aside lower allowances for credit and other losses.

Net profit for the quarter was 1.70 billion Singapore dollars (US$1.26 billion), DBS Group, one of Southeast Asia's largest banks by assets, said Thursday.

Total income was down 4% at S$3.59 billion, mainly due to lower net interest income.

During the second quarter, the lender has set aside only S$79 million toward expected credit losses versus S$849 billion year ago, when Covid-19 cases were fast spreading around the world.

DBS said it will pay 33 Singapore cents as dividend in the second quarter.

"Business momentum and asset quality have both been better than expected as the economic recovery from the pandemic takes hold," DBS Chief Executive Piyush Gupta said.

He said that while risks remain, the bank's pipeline remains healthy and that it expect business momentum to be sustained in the coming quarters.

Write to P.R. Venkat at [e-mail]

(END) Dow Jones Newswires

08-04-21 1915ET