Singapore’s largest bank DBS reported strong results with Q3 net profit up 31% YoY at S$1.7bn ($1.26bn), beating estimates of S$1.6bn ($1.2bn). 9M 2021 net profits also rose 46% to a record S$5.41bn ($4bn). Net interest income was up 1% QoQ to S$2.1bn ($1.55bn) as the 2% loan growth was partly offset by a 2bp decline in net interest margins to 1.43%. Fee income from wealth management, transaction services and cards rose 8%, 7% and 9% QoQ to S$461mn ($341mn), S$239mn ($177mn) and S$180mn ($133mn) respectively while fees from investment banking declined 38% to S$40mn ($30mn). In terms of its balance sheet, total assets grew marginally to S$676.3bn ($500bn) with NPAs falling 1% QoQ to S$6.57bn ($4.86bn). DBS’ NPL ratio was stable at 1.5%. The bank also reported a general allowance writeback of S$138mn ($102mn) taking the 9M 2021 total writeback to S$413mn ($305mn). The lender’s CET1 stands at 14.5%, unchanged from Q2. DBS also announced a dividend of S$0.33 per share taking the 9M dividend to S$0.84 per share. On the outlook, the CEO’s presentation stated a mid-to-high single-digit loan growth and double-digit fee income growth in 2022 as “business momentum [is] healthy despite supply chain bottlenecks and China developments”.

DBS’ USD 3.3% Perp traded stable at 102.125 yielding 2.62% currently.

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