DBS 4Q below expectations at S$760m

DBS Group Holdings on Wednesday said fourth quarter 2012 net profit rose by a lower 4 per cent to S$760 million as the tax rate had halved in fourth quarter 2011 from a finalisation of prior years' tax assessments.

Fourth-quarter net profit was 11 per cent below the previous quarter, partly reflecting seasonal trends.

For full-year 2012, net profit reached a record S$3.81 billion, which included divestment gains of S$450 million. A gain of S$450 million was recorded for the partial divestment of a stake in the Bank of Philippine Islands. Excluding the gains, net profit rose 11 per cent from the previous year to S$3.36 billion.

Return on equity before the divestment gains rose to 11.2 per cent, the best in five years.

Singapore DBS Q3 profit up 12 pct bad debts decline

* Says managing capital efficiently ahead of Basel 3

* DBS shares have outperformed rivals in 2012

SINGAPORE, Nov 1 (Reuters) - DBS Group Holdings Ltd , Southeast Asia's biggest lender, posted a 12 percent rise in third-quarter net profit, beating expectations on a sharp drop in bad debt charges and on double-digit growth in income from its core lending business.

The bank's net profit surprisingly exceeded its second-quarter figure as well, bolstered by strong fee and commission income amid gains in investment banking and wealth management.

The outlook for Singapore's banking sector is challenging as new government measures to cool the property market will likely slow demand for mortgages, while low interest rates are expected to hit margins.

Singapore authorities expect GDP growth this year of between 1.5 and 2.5 percent, down from 4.9 percent last year and below what they believe is the economy's trend growth of 3-5 percent.

" As loan growth slows, the Singapore banks' abundant liquidity will likely become an increasing drag on margins," Sharnie Wong, a banking analyst at Barclays, said in a note before the earnings announcement.

DBS CEO Piyush Gupta is trying to expand the bank beyond its two largest markets -- Singapore and Hong Kong -- which account for almost 80 percent of its earnings.

But the bank's $7.2 billion bid to take over Indonesia's sixth-biggest bank, PT Bank Danamon, has been delayed due to regulatory obstacles. Singaporean state investment fund Temasek owns a controlling stake in Danamon and a 29 percent stake in DBS.

Gupta said in a statement the bank would manage its capital efficiently ahead of the introduction of Basel 3 rules.

DBS made a net profit of S$856 million ($702 million) for July-September against a net profit of S$762 million a year earlier.

That beat an average forecast of S$795 million in a survey of five analysts by Thomson Reuters, and was above the S$810 million recorded in its second quarter.

It posted a record nine-month net profit of S$2.6 billion, up 13 percent from a year earlier.

Bad debt charges dropped 76 percent in the third quarter of 2012 from a year earlier, when Singapore banks took more provisions due to the worsening eurozone debt crisis.

DBS's net interest income, or income from the core lending business, rose 10 percent to S$1.3 billion from a year earlier, as loans expanded by 9 percent, although the interest margin dropped by 6 basis points in the third quarter from a year earlier.

Net fee and commission income rose 6 percent from a year earlier to S$422 million, and 11 percent from the second quarter.

Shares of DBS are up about 21 percent so far this year, slightly ahead of United Overseas Bank's 19.6 percent rise and higher than Oversea-Chinese Banking Corp's about 16 percent jump. The benchmark Straits Times Index is up about 15 percent in 2012. (Reporting by Saeed Azhar Editing by Richard Pullin and Chris Gallagher) 

DBS, Southeast Asia's biggest lender, posted on Friday a 10% rise in second-quarter net profit, helped by strong loan growth and a drop in bad debt charges.

The bank warned that it expects a little pressure on interest margins especially in China and sees some headwinds ahead for loan growth despite a healthy credit pipeline.

DBS made a net profit of $810 million for April-June against a net profit of $735 million a year ago.

That compared with an average forecast of $795 million, according to six analysts surveyed by Reuters.



Analysts are expecting the bank to begin a formal regulatory application process for its planned US$7.2 billion acquisition of Indonesia's Bank Danamon after Indonesia came up with new rules to restrict ownership of banks, but allowed some exceptions. 

 

SINGAPORE, April 27 (Reuters) - DBS Group, Southeast Asia's largest bank, posted a surprise 16 percent gain in first-quarter profit, beating analysts' expectations as interest margins came in higher than expected.

Net income rose to S$933 million ($751.72 million) in the three months ended March, compared with S$807 million a year earlier, the Singapore-based lender said in a statement on Friday.

That was well above the S$771 million average estimate of seven analysts polled by Reuters.

Net interest margin during the quarter rose to 1.77 percentage points from 1.73 points in the preceding period, although it was still below the 1.80 points earned a year ago.

" Strong business momentum, with key earnings drivers and strategic initiatives kicking in, propelled the bank's first-quarter earnings this year to yet another record high," Chief Executive Officer Piyush Gupta said in the statement.

" DBS's exceptional showing was underpinned by sustained loan growth, broad-based non-interest income, as well as higher contributions from all our markets," he added.

Shares of DBS had fallen as much as 7 percent since it announced plans to buy Bank Danamon earlier this month in a deal that valued the Indonesian lender at $7.2 billion, although they have partially recovered since. ($1 = 1.2412 Singapore dollars) (Reporting by Kevin Lim and Leonard How Editing by Eric Meijer)