Singapore banks DBS, UOB report second-quarter 2020 earnings results

spike

The building of DBS, Singapore’s largest bank, at the city state’s central business district.

Suhaimi Abdullah | Getty Images News | Getty Images

DBS Group Holdings, the largest bank in Singapore and Southeast Asia, reported a 22% fall in second-quarter net profit compared to a year ago as it set aside more money for loan losses that could arise from the economic impact of the coronavirus pandemic.

The bank said on Thursday that net profit fell to 1.25 billion Singapore dollars ($912.9 million) in the April-to-June quarter — down from 1.6 billion Singapore dollars a year ago. It beat Refinitiv estimates of around 1.19 billion Singapore dollars.

Here are the other financial indicators that DBS reported:

  • Total allowances for loan losses amounted to 849 million Singapore dollars ($620 million) in the second quarter, up from 251 million Singapore dollars a year ago;
  • Total income was roughly steady at 3.73 billion Singapore dollars;
  • Net interest margin, a measure of lending profitability, dipped to 1.62% from 1.91% in the prior year;
  • Ratio of non-performing loans was at 1.5%, unchanged from the previous year.

The bank said in a statement accompanying the earnings release that several income streams are improving as economies ease lockdown measures meant to slow the spread of the coronavirus.

Separately, smaller rival United Overseas Bank reported a 40% year-over-year decline in second-quarter net profit at 703 million Singapore dollars ($513.4 million) — below estimates by Refinitiv. 

UOB also put aside additional allowances of 379 million Singapore dollars ($276.8 million) in the quarter “in view of COVID-19 impact.”

Source Article

Next Post

Manulife Singapore launches advisory arm

Manulife Singapore has launched the Manulife Advisory Group, a remodel of its proprietary agency channel, which it claims will offer a wider range of offerings to customers. According to a statement from Manulife Singapore, the new advisory arm operates under an open architecture system and will enable higher insurance penetration […]