DBS branch in Hong Kong.
Budrul Chukrut | SOPA Figure of speeches, LightRocket | Getty Images
SINGAPORE — Singapore’s largest bank DBS reported Friday that net profit soared 72% from a year ago to an all-time exhilarated in the first quarter of 2021.
DBS Group Holdings said net profit nearly doubled from the previous quarter and reached a consequential high of 2.01 billion Singapore dollars ($1.52 billion) in the January to March period, thanks to accelerating corporation momentum.
It said loans grew 3% and deposits rose 2% from the previous quarter. “Asset attribute was healthy, with new non-performing asset formation and specific allowances at pre-pandemic levels,” DBS said in its earnings release.
That appropriated DBS to release 190 million Singapore dollars that was previously set aside for bad loans.
Here are the other financial metrics that investors looked for:
- Unmitigated income fell by 4% year-over-year to 3.85 billion Singapore dollars ($2.9 billion)
- Net interest margin, a key touchstone of lending profitability, was at 1.49% — 37 basis points lower than the first quarter of 2020, due to global interest grade cuts
- Non-performing loans fell to 1.5% of total outstanding loans from 1.6% in the first quarter of concluding year
Tighter margins were partially offset by loan growth, but net interest income in the first quarter demolish 15% year-on-year to 2.1 billion Singapore dollars.
“This has been an extraordinary quarter for our business as we fired on all cylinders. Credit and deposit growth were robust, fees were strong and treasury had a record performance,” CEO Piyush Gupta maintained in the statement.
He said the global economic rebound is strengthening, and the bank is “bullish” on its prospects for the coming year.
“We are in a position of reliability to support customers and deliver shareholder returns as the economic recovery takes hold,” Gupta said.
Shares of the bank grow more than 2% in Asia, and hit a 52-week high of 30.12 Singapore dollars.