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DBS third-quarter profit skids 20%, OCBC's profit falls 12%

DBS third-quarter profit skids 20%, OCBC's profit falls 12%

DBS signages are seen in Singapore on Oct 8, 2019. (Photo: REUTERS/Feline Lim)

SINGAPORE: DBS Group, Southeast Asia's biggest lender, reported a 20 per cent fall in third-quarter profit on Thursday (Nov 4), hit by lower net interest income, but the results came above market estimates.

For the three months to September, Singapore's DBS posted a net profit of S$1.30 billion compared with S$1.63 billion a year earlier, and an average estimate of S$1.17 billion from four analysts, according to Refinitiv data.

DBS CEO Piyush Gupta said the third-quarter results reflect a "recovery in business momentum" as the region emerges from COVID-19 pandemic lockdowns.

"The rebound in fee income to pre-COVID levels has enabled us to cushion the full impact of lower interest rates," he said. "At the same time, the accelerated build-up of allowances has strengthened our ability to meet the challenges of an uneven economic recovery in the coming year.

"In the longer term, Asia’s fundamentals remain undiminished. With ample liquidity and healthy capital, we remain well positioned to support customers and the community.”

Meanwhile quarterly profit at No 2 ranked OCBC dropped 12 per cent to S$1.03 billion from S$1.17 billion a year earlier. This compared with an average profit estimate of S$864.9 million from four analysts, according to data from Refinitiv.

Source: Reuters/cna/ec(ac)

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