DBS profit rises 12%
(14 February 2012 – Asia) Singapore’s DBS bank recorded a net profit of S$3.04 billion (A$2.25 billion) for 2011.
Net interest income jumped 12 percent to a record S$4.83 billion. Loans increased 28 percent to S$195 billion. The increase was led by corporate loans across the region, with trade finance accounting for half of the growth.
Net interest margins fell seven basis points to 1.77 percent as interest rates remained soft in Singapore and deposit costs were higher in Hong Kong.
Non-interest income grew 2 percent to S$2.81 billion as higher customer-driven income was offset by a decline in stockbroking commissions and lower trading gains.
Fee income rose 10 percent to a record S$1.54 billion from improvements in a wide range of activities, led by wealth management and trade and remittances in line with efforts to develop these businesses.
Total income rose 8 percent to S$7.63 billion. Expenses grew 13 percent to S$3.30 billion as headcount and infrastructure investments were made to support higher business volumes and future growth.
The cost-income ratio was healthy at 43 percent. Profit before allowances rose 5 percent to S$4.33 billion.
Asset quality improved with the non-performing loan rate falling to 1.3 percent from 1.9 percent at end-2010.
General allowances more than doubled to S$478 million, reflecting a more prudent provisioning policy.
Together with specific allowances of S$244 million, which were one-third the charge taken in 2010, allowance coverage was at 126 percent or at 165 percent if collateral was included.
Net interest margins fell seven basis points to 1.77 percent as interest rates remained soft in Singapore and deposit costs were higher in Hong Kong.
Non-interest income grew 2 percent to S$2.81 billion as higher customer-driven income was offset by a decline in stockbroking commissions and lower trading gains.
Fee income rose 10 percent to a record S$1.54 billion from improvements in a wide range of activities, led by wealth management and trade and remittances in line with efforts to develop these businesses.
Total income rose 8 percent to S$7.63 billion. Expenses grew 13 percent to S$3.30 billion as headcount and infrastructure investments were made to support higher business volumes and future growth.
The cost-income ratio was healthy at 43 percent. Profit before allowances rose 5 percent to S$4.33 billion.
Asset quality improved with the non-performing loan rate falling to 1.3 percent from 1.9 percent at end-2010.
General allowances more than doubled to S$478 million, reflecting a more prudent provisioning policy.
Together with specific allowances of S$244 million, which were one-third the charge taken in 2010, allowance coverage was at 126 percent or at 165 percent if collateral was included.
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