Singapore-based lender DBS Group has posted a net profit of SGD1.07bn for the third quarter of 2015, a rise of 6% from SGD1bn a year ago.
The bank’s total income during the quarter grew by 8% to SGD2.7bn from SGD2.5bn a year ago. Net interest income rose 13% to SGD1.81bn from SGD1.6bn in the third quarter of 2014, while non-interest income declined marginally to SGD899m from SGD912m a year earlier.
Net fee income fell 7% to SGD517m due to a high base for investment banking fees a year ago, the bank said in its earnings statement.
Other non-interest income rose 7% to SGD382 million. Trading income was 6% higher at SGD286m as higher corporate customer activities were partially offset by the funding valuation adjustment charge of SGD50m.
The bank said that results included a charge of SGD50m taken to trading income as DBS incorporated funding valuation adjustments to the fair value of over-the-counter derivatives.
The lender’s expenses increased 14% to SGD1.26bn from headcount growth and investments. Excluding currency translation effects and the one-time impact of acquisitions, underlying expenses were 9% higher.
The underlying cost-income ratio was 45%, the bank revealed.
DBS CEO Piyush Gupta said: "In a quarter marked by slower regional growth and intense market volatility, the bank’s earnings continued to hold strong. Significantly, net interest margin is at a four-year high. The ability to deliver a solid set of numbers in the face of headwinds testifies to the resilience of the DBS franchise and the soundness of our risk management practices."