In Focus
FINANCIAL SERVICES | Staff Reporter, Singapore

DBS performance to stay strong: report

Jefferies Equity research says the bank will continue to grow past its $2b net income from the first quarter.

DBS, one of the largest banks in Singapore and the currently the top ranking stock in the Singapore Exchange, reported a record-breaking $2b net income for the first quarter

International financial services firm Jefferies said the bank is expected to continue its growth momentum.

"Loan growth guidehas been increased to mid-to-high single digit. Margin will be between 145-150 bps,unchanged from before. Full year total allowance likely to be sub-S$1b, a slightimprovement from before, while various investments will weigh on costs which willbe 3-4% higher year-on-year," it said in a report.

Jefferies noted recent developments such as it becoming the largest shareholder of Chinese bank Shenzhen Rural Commercial Bank ( and its acquisition of Indian Lakshmi Vilas Bank.

"Diversified business gives ample revenue streams tosustain business momentum and offset the impactof lower margins," it added.

It also cited its investments in Partior, a blockchain based payments infrastructure led by Temasek, as a means for it to help distribute and share digital currencies.

On the other hand, trade-related uncertainties and depreciating Asian currencies were identified was downside risks.

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