Singapore’s biggest bank DBS Group reported a stronger-than-expected 43 per cent jump in first quarter profit to a new high from a year earlier on a higher net interest margin, sustained business momentum and resilient asset quality.
“We delivered a record performance and benefited from safe haven deposit inflows during a quarter marked by increased market volatility,” said DBS chief executive officer Piyush Gupta in a statement.
He added that the bank’s ability to sustain business momentum and customers’ trust was due to its “solid capital position, prudent risk management, diversified business lines and nimble execution, underpinned by an ongoing digital transformation”.
“Our multi-faceted franchise strengths will enable us to continue supporting customers and delivering shareholder returns,” Mr Gupta said.
DBS, which is also Southeast Asia’s largest lender by assets, said January to March net profit rose to S$2.57 billion (US$1.92 billion) from S$1.8 billion a year ago, beating a mean estimate of S$2.44 billion from five analysts polled by Refinitiv.
Return on equity rose to a new high of 18.6 per cent in the first quarter from 13.1 per cent the same quarter a year earlier, according to its financial statement.
It reported a total net interest margin, a key gauge of profitability, of 2.12 per cent for the first quarter, up from 1.46 per cent in the same period a year earlier, according to its financial statement.