DBS share price dips 0.56% after Q2 profit beat estimates

Shares of Singapore-headquartered DBS Group Holdings eased 0.56% on Monday as some investors cash out after the bank posted a 17% gain in net profit for the second quarter, at S$1.60 billion.

Higher total income helped the group beat market estimates for its second quarter net profit. Experts were predicting for the three months ending June to come in at S$1.47 billion. Net profit for the second quarter last year was at S$1.37 billion.

This is as banks face a challenging outlook ahead with the Singapore economy at a growth that is at the slowest annual pace in a decade.

Earnings per share stood at S$2.47, up from S$2.12 a year ago. The group has declared a one-tier tax exempt dividend of 30 Singapore cents per share for the quarter, unchanged from the previous quarter.

DBS share price ease 0.56%

DBS shares eased 0.56% or S$0.15 to S$26.73 by 12pm Singapore time on Monday, the same day the bank’s results were released.

Year-to-date, the bank’s shares have risen by 12.8%, from S$23.69 on January 1, 2019.

DBS maintains mid-single-digit loan growth forecast for 2019

Total income for the second quarter rose by 16% to S$3.71 billion from S$3.20 billion a year ago.

DBS’ net interest income was up by 9% for the second quarter, helped by loans growth which was up by 5% in constant-currency terms. Net interest margin for the group improved six basis points to 1.91%, .

For the first half of this year, net profit rose by 12% to a record S$3.25 billion. Total income for the six months rose 11% to S$7.26 billion, from corporate loan growth, a higher net interest margin, record fee income, and an improved trading performance.

‘We achieved a record half-year performance despite heightened economic uncertainty and geopolitical tensions. The results reflect the strengths of an entrenched broad-based franchise that is well-placed to nimbly navigate market volatility and capture opportunities as they arise,’ commented DBS’ chief executive Piyush Gupta.