Singapore-based lender DBS has registered a net profit of SGD822m ($601.9m) in the third quarter of 2017, a slump of 23% from SGD1.07bn ($784.3m) a year ago.
The bank attributed the decrease in profit to an 87% surge in net allowances to SGD815m as it classified residual weak oil and gas support service exposures as non-performing assets.
The bank’s quarterly pre-tax profit was SGD987m, a 24% slump compared with SGD1.29bn in the previous year. Total income increased 4% to SGD3.06bn from SGD2.93bn last year.
Compared to the previous year, net interest income rose 9% to SGD1.97bn while net fee and commission income increased 12% to SGD685m. Expenses rose 5% year-on-year to SGD1.25bn.
The bank’s consumer banking /wealth management arm reported pre-tax profit of SGD490m for the third quarter of 2017, a rise of 1% compared to SGD483m in the corresponding quarter of 2016. The unit’s total income was SGD1.17bn, a rise of 6% over SGD1.10bn reported a year ago.
The bank’s institutional banking arm posted a pre-tax loss of SGD731m, as against a pre-tax profit of SGD648m last year. The unit’s total income rose 1% year-on-year to SGD1.32bn.