Singapore DBS Q3 profit beats view, sees steady earnings next year

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Singapore's biggest bank DBS Group (DBSM.SI) reported on Monday a better than expected 18% jump in third-quarter net profit on the back of higher interest rates, which it forecast will also help keep its profit steady next year.

2024 net profit to be maintained around record 2023 level - CEONet interest margin at 2.19% in Q3 versus 1.90% a year agoreported on Monday a better than expected 18% jump in third-quarter net profit on the back of higher interest rates, which it forecast will also help keep its profit steady next year."Net profit to be maintained around record 2023 level," CEO Piyush Gupta said in a briefing after the earnings result.

Gupta sees a "bottom" in China's economic slowdown and its massive property market following government measures put in place since mid-year. DBS also has no direct exposure to the conflict in the Middle East, he added. He also forecast next year's profit before allowances to be higher, and total allowances to normalise to 17-20 basis points of loans, according to the statement.

Besides higher global interest rates, Singapore banks have benefited from strong inflows of wealth drawn in by the city-state's political stability.

 

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