Singapore's DBS second-quarter profit beats estimates as business picks up

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DBS Group posted a 22% fall in Q2 net profit after shoring up loan loss allowances. YahooFinance

SINGAPORE - Singapore's DBS Group Holdings reported a 22% fall in second-quarter net profit on Thursday after shoring up loan loss allowances in a pandemic-hit market, but its profit came just above market estimates and rose from the preceding quarter.

Smaller rival United Overseas Bank however missed analysts' estimates with a 40% fall in quarterly profit due to lower margins and higher credit costs. DBS said profit for the June quarter fell to S$1.25 billion from S$1.6 billion a year earlier, and versus an average estimate of S$1.19 billion from five analysts, according to Refinitiv data.

"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.

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