DBS shatters profit forecasts as higher interest rates boost loan yields

Wealth management income also ticked up.

DBS had another record-breaking quarter when it reported a net profit of $1.22 billion for the first three months of the year, much higher than consensus forecasts of $1.04 billion. Analysts say that the unexpected profit uptick was due to higher interest rates during the quarter, which boosted the bank's loan yields despite slowing credit growth.

KGI Fraser said in a report that DBS' net interest margin (NIM) rose to 1.85% in Q1 as loan yields rose by 9 bps.

"We see DBS to be in a better position than its local peers in terms of maintaining its current NIM levels, given its highly leveraged position to rising interest rates," KGI Fraser said.

Apart from higher net interest income, DBS also enjoyed stronger fee and commission income from its wealth management segment.

Income from the bank’s wealth management segment reached a record high of $383 million in Q1, as total assets under management (AUM) reached $147 billion. The bank's partnership with Manulife Financial Asia also got off to a good start as bancassurance income grew around 63% to $98mn this quarter.

“We believe DBS’s resilient asset quality and strong capital ratio should provide the bank with sufficient buffer to navigate the near-term headwinds,” KGI Fraser said.

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia