SINGAPORE: DBS Group's second-quarter net profit slumped by a fifth as it boosted loan-loss provisions in a pandemic-hit market, but Southeast Asia's top lender said bad loans this quarter were steady and fee income was rising.
"DBS did better with help on treasury income and surprisingly was again able to contain costs like Q1," said Kevin Kwek, a senior analyst at Sanford C. Bernstein. Investors are keen to see if the June quarter marked the trough for banks' net interest margins, a key measure of profitability, and whether lenders can effectively tackle loan losses in recession-hit economies.Smaller rival United Overseas Bank missed analysts' estimates with a 40 per cent fall in quarterly net profit due to lower margins and higher credit costs.
Gupta maintained DBS' guidance for total allowances at S$3 billion-S$5 billion over two years, with S$1.9 billion already booked in the first half.DBS expects 5 per cent growth in full year loans, led by non-trade corporate loans.
Canada Canada Latest News, Canada Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »