DBS profits up 26% to $1.15b in Q1

Total income rose 16% thanks to healthy loan growth and interest income.

DBS started the year on strong financial footing as the group’s net profit rose 26% YoY to $1.15b (SG$1.52b) in Q1, according to the company’s financial statement. 

Total income rose 16% to $2.54b (SG$3.36b) amidst healthy loan growth which clocked in at 13% amidst strong demand for trade, corporate and consumer loans.

“With interest rates and allowance charges reverting to more normalised levels, and our capital base streamlined with the finalisation of regulatory requirements, the structural profitability of our franchise has been more clearly demonstrated with this quarter’s results,” said DBS Ceo Piyush Gupta.

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In a breakdown by business unit, Consumer Banking / Wealth Management income rose 17% to $1.03b (SG$1.36b) led by investment products and deposits. Institutional Banking income grew 3% to $1.03b (SG$1.36b) whilst trading-related income for Treasury Markets rose 33% to $188.05m (SG$249m).

Net interest margin also improved nine basis points to 1.83% in step with higher interest rates. Net fee income increased 12% to $561.89m (SG$744m). Wealth management fees grew by an underlying 31% to a new high of $249.98m (SG$331m) from higher investment product and bancassurance sales. Card fees rose 27% to $117.81m (SG$156m) from higher credit and debit card activities as well as the consolidation of the ANZ business in Taiwan and Indonesia. Brokerage commissions were 29% higher at $37m (SG$49m) from increased equity market activities.

“Whilst we are keeping a watchful eye on how geopolitical trade tensions play out, the region’s economic fundamentals remain sound. Our pipeline is healthy and we expect to continue capturing business opportunities and delivering shareholder returns in the coming year,” Gupta added.