DBS Profit Beats Estimates as Bank Signals Business Pickup
DBS Group Holdings Ltd. reported a smaller-than-expected drop in third-quarter profit as it flagged an improvement in business momentum even as the pandemic led to more provisions.
- Net income fell 20% to S$1.3 billion ($957 million) in the three months ended Sept. 30 from S$1.63 billion a year earlier, the Singapore-based bank said Thursday. That beat the S$1.12 billion average estimate of eight analystssurveyed by Bloomberg News.
- DBS is the second of Singapore’s three big lenders to post results, with United Overseas Bank Ltd.beating estimates on cost cutting. Oversea-Chinese Banking Corp. is expected to report lower profit later Thursday.
- While DBS’s allowances for credit losses more than doubled from a year earlier, they were smaller than the previous quarter. The bank stuck with its plans to allocate between S$3 billion and S$5 billion in provisions for the two years ending 2021, saying it expects more bad debts to come when government relief programs expire.
- Chief Executive Officer Piyush Gupta said “business momentum improved,” with wealth management and a pickup in credit card spending among the bright spots.
- Like UOB, DBSreported lower net interest income, underscoring the impact of the coronavirus on core lending business.
- For more details on the results, clickhere.
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