DBS Q1 2019 net income rises by 9% to S$1.65bn ($1.2bn) ahead of analyst forecasts and a quarterly record.
Singapore’s largest bank by assets also reports a 6% rise in total income to another quarterly record, S$3.55bn.
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The record results are partly powered by improved margins. Compared to the year-ago period, net interest income rose 9% to S$2.31bn. In particular, DBS Q1 2019 results highlight a 5 basis points rise in the net interest margin to 1.88%.
Total loans grow by 5% with retail banking lending up by 3% from the year ago quarter.
On the other hand, less positive metrics include a 2% fall in net fee income.
And notably, wealth management, brokerage and investment banking fee income is down 12%.
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By GlobalDataDBS Q1 2019 results: highlights
Card fees increase by 21% to S$189m from higher customer transactions. Transaction service fees rise by 6% to S$88m as both cash management and trade finance fees increase. Loan-related fees are ahead by 9% to S$108m.
Other retail highlights include Consumer Banking / Wealth Management income rising 15% to S$1.56bn on higher deposit and bancassurance income.
Asset quality continues to be benign. Non-performing assets were stable from the previous quarter at S$5.6bn as new non-performing asset formation remained low. The NPL rate is unchanged at 1.5%.
DBS’ return on equity improves to 14% versus 13.1% a year ago. The DBS cost income ratio remains stable at 42%.
Deposits are flat from the previous quarter and ahead by 5% from a year ago to S$395bn.
DBS CEO Piyush Gupta says: “We have had a good start to the year. Business momentum was sustained and non-interest income recovered from the recent weakness.
“The record earnings and ROE progression demonstrate the strengthened profitability of our franchise from digitalisation. And show a shift towards higher-returns businesses and more nimble execution. We are well placed to continue capturing growth opportunities across the region and delivering healthy shareholder returns.”
At the 34th annual RBI global awards on 24 April, DBS collected the award for Best Retail Bank, Asia Pacific.
In addition, DBS scooped up nine awards at the 10th annual RBI Asia Trailblazer Awards on 7 March.
