Singapore financial institution DBS earnings Q1 2021, outlook

DBS department in Hong Kong.

Budrul Chukrut | SOPA Pictures, LightRocket | Getty Pictures

SINGAPORE — Singapore’s largest financial institution DBS reported Friday that web revenue soared 72% from a yr in the past to an all-time excessive within the first quarter of 2021.

DBS Group Holdings stated web revenue practically doubled from the earlier quarter and reached a historic excessive of two.01 billion Singapore {dollars} ($1.52 billion) within the January to March interval, because of accelerating enterprise momentum.

It stated loans grew 3% and deposits rose 2% from the earlier quarter. “Asset high quality was wholesome, with new non-performing asset formation and particular allowances at pre-pandemic ranges,” DBS stated in its earnings launch.

That allowed DBS to launch 190 million Singapore {dollars} that was beforehand put aside for dangerous loans.

Listed here are the opposite monetary metrics that buyers seemed for: 

  • Whole revenue fell by 4% year-over-year to three.85 billion Singapore {dollars} ($2.9 billion)
  • Web curiosity margin, a key gauge of lending profitability, was at 1.49% — 37 foundation factors decrease than the primary quarter of 2020, resulting from world rate of interest cuts
  • Non-performing loans fell to 1.5% of whole excellent loans from 1.6% within the first quarter of final yr

Tighter margins have been partially offset by mortgage progress, however web curiosity revenue within the first quarter fell 15% year-on-year to 2.1 billion Singapore {dollars}.

“This has been a unprecedented quarter for our enterprise as we fired on all cylinders. Mortgage and deposit progress have been sturdy, charges have been sturdy and treasury had a report efficiency,” CEO Piyush Gupta stated within the assertion.

He stated the worldwide financial rebound is strengthening, and the financial institution is “bullish” on its prospects for the approaching yr.

“We’re able of power to assist clients and ship shareholder returns because the financial restoration takes maintain,” Gupta stated.

Shares of the financial institution rose greater than 2% in Asia, and hit a 52-week excessive of 30.12 Singapore {dollars}.

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