Southeast Asia's largest bank says wealth management, capital markets business face challenges

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'Business momentum is a bit mixed. Our corporate lending activities are actually doing quite well. And so the balance sheets continue to grow,' DBS Group CEO Piyush Gupta said.

Gupta said the outlook for the wealth management business remains uncertain given the current market sentiment.

"If the markets do start turning around and you start seeing more animal spirits, we can get some more capital markets deals done — and wealth management, private banking customers could get more active," the CEO said.On Thursday, DBS reported net profit rose to S$1.82 billion during the April to June period from S$1.7 billion a year earlier. That's higher than the average forecast of S$1.69 billion, according to data from Refinitiv.

Gupta said the increase in the net interest margin was the "biggest story," noting the sharp increase. He noted projections for net interest margin "in the third and fourth quarter are quite robust." "And if that is the case, then yes, it is the story of net interest margin increases that will propel the business along," Gupta said.

DBS said the board has declared an interim one-tier tax-exempt dividend of 36 cents for each DBS ordinary share for the second quarter of 2022 .

 

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