disruptpress efi

Singapore’s largest bank reports 22% fall in quarterly profit as it guards against pandemic-induced risks

The building of DBS, Singapore’s largest bank, at the city state’s central business district.

Suhaimi Abdullah | Getty Images News | Getty Images

DBS Group Holdings, the largest bank in Singapore and Southeast Asia, reported a 22% fall in second-quarter net profit compared to a year ago as it set aside more money for loan losses that could arise from the economic impact of the coronavirus pandemic.

The bank said on Thursday that net profit fell to 1.25 billion Singapore dollars ($912.9 million) in the April-to-June quarter — down from 1.6 billion Singapore dollars a year ago. It beat Refinitiv estimates of around 1.19 billion Singapore dollars.

Here are the other financial indicators that DBS reported:

  • Total allowances for loan losses amounted to 849 million Singapore dollars ($620 million) in the second quarter, up from 251 million Singapore dollars a year ago;
  • Total income was roughly steady at 3.73 billion Singapore dollars;
  • Net interest margin, a measure of lending profitability, dipped to 1.62% from 1.91% in the prior year;
  • Ratio of non-performing loans was at 1.5%, unchanged from the previous year.

The bank said in a statement accompanying the earnings release that several income streams are improving as economies ease lockdown measures meant to slow the spread of the coronavirus.

Separately, smaller rival United Overseas Bank reported a 40% year-over-year decline in second-quarter net profit at 703 million Singapore dollars ($513.4 million) — below estimates by Refinitiv. 

UOB also put aside additional allowances of 379 million Singapore dollars ($276.8 million) in the quarter “in view of COVID-19 impact.”

Products You May Like

Articles You May Like

‘Buzz’ ETF tracking social media sentiment launches Thursday amid Reddit manias in stocks
Detroit mayor rejects initial J&J vaccine shipment, saying Pfizer and Moderna are ‘the best’
Jeff Bezos visited the new headquarters of Relativity Space, the 3D-printing rocket builder
CDC study finds easing mask and restaurant rules led to more Covid cases and deaths, as some states move to lift restrictions
Cryptocurrency Purchases Made In USD Are Not Reportable To The IRS

Leave a Reply

Your email address will not be published. Required fields are marked *