DBS Group says first quarter net profit down 2.0 per cent
DBS Group said its first-quarter net profit dipped 2.0 per cent from the previous year as trading and capital market activities took a hit from global financial turmoil.
By Agencies |
SINGAPORE: DBS Group, Southeast Asia's biggest bank, said Wednesday its first-quarter net profit dipped 2.0 per cent from the previous year as trading and capital market activities took a hit from global financial turmoil.
Net profit of 603 million Singapore dollars (446 million US) in the three months ended March 31 beat analysts forecasts as continued loan growth and measures to cut costs helped cushion the turmoil's impact, the bank said.
Compared with the previous quarter, net profit climbed 8.0 percent, it said.
Revenue totalled 1.56 billion dollars, up 1.0 percent from the same period last year and 2.0 percent higher than the previous quarter.
"Despite the challenging trading and capital markets environment, we continued to grow our customer franchise and increase business volumes, while remaining prudent and vigilant on costs," said DBS chairman Koh Boon Hwee.
"In the past quarter, DBS made breakthroughs into new markets like Taiwan and Vietnam and the bank continues to gain momentum in countries like China, Indonesia and India, where it recently received the approval to set up eight new branches."
The bank said it suffered a first-quarter trading loss of 161 million dollars, compared with its 171-million-dollar net profit the year before, amid a global credit crunch triggered by a crisis in the US housing market.
Net interest income was up 9.0 per cent as loan volumes surged, driven by corporate borrowings, it said.
Income from fees rose 14 per cent over the previous year, but was down 7.0 per cent from the preceding quarter "due to weaker capital market activities such as wealth management, investment banking and stockbroking," it added.
DBS says it has operations in 16 Asian markets, including Hong Kong.
Net profit of 603 million Singapore dollars (446 million US) in the three months ended March 31 beat analysts forecasts as continued loan growth and measures to cut costs helped cushion the turmoil's impact, the bank said.
Compared with the previous quarter, net profit climbed 8.0 percent, it said.
Revenue totalled 1.56 billion dollars, up 1.0 percent from the same period last year and 2.0 percent higher than the previous quarter.
"Despite the challenging trading and capital markets environment, we continued to grow our customer franchise and increase business volumes, while remaining prudent and vigilant on costs," said DBS chairman Koh Boon Hwee.
"In the past quarter, DBS made breakthroughs into new markets like Taiwan and Vietnam and the bank continues to gain momentum in countries like China, Indonesia and India, where it recently received the approval to set up eight new branches."
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DBS said in March that all eight Indian branches are expected to be operational within the next 12 months.The bank said it suffered a first-quarter trading loss of 161 million dollars, compared with its 171-million-dollar net profit the year before, amid a global credit crunch triggered by a crisis in the US housing market.
Net interest income was up 9.0 per cent as loan volumes surged, driven by corporate borrowings, it said.
Income from fees rose 14 per cent over the previous year, but was down 7.0 per cent from the preceding quarter "due to weaker capital market activities such as wealth management, investment banking and stockbroking," it added.
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The bank said it will pay shareholders a quarterly dividend of 20 cents a share, unchanged from a year earlier.DBS says it has operations in 16 Asian markets, including Hong Kong.
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