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last yr.

DBS Bank Reports 18% Jump in Q3 Profit, Beats Estimate Amid High-Interest Rate Environment

Singapore's largest lender forecasts steady profits for next year, declares a dividend of 48 Singapore cents per share for Q3, amidst disruptions and a ban on new business ventures following multiple service failures.

Overview

  • DBS Bank recorded a profit jump of 17% in its third quarter results, largely due to the favorable high-interest rate environment. The net profit amounted to 2.63 billion Singapore dollars ($1.94 billion) compared to SG$2.24 billion in the same period last year.
  • The bank's upbeat financial performance was fueled by a rise in its net interest margin - a measure of lending profitability - from 1.90% last year to 2.19% this year.
  • DBS has exceeded analysts' expectations and declared a dividend of 48 Singapore cents for each ordinary share in the third quarter.
  • CEO Piyush Gupta stated that the bank's strong balance sheet, ample liquidity, prudent reserves, and healthy capital ratios have positioned it well against possible economic uncertainties.
  • Amid multiple service disruptions throughout the year, DBS has been barred from acquiring new businesses for six months by the Monetary Authority of Singapore (MAS). It also has to pause non-essential IT changes for the same duration.