DBS Singapore Reports Higher Q3 Profits Than Expected
Singapore bank DBS Group has reported an 18% increase in net profits for the third quarter (Q3) of 2023.
Recording a whopping S$2.63 billion in net profits, this rise is more than they previously expected.
The rise is thanks to higher interest rates, which will likely help them maintain earnings at a steady rate next year.
Additionally, they have forecast a record full-year profit for this year.
DBS says increase in Q3 profits due to higher interest rates
According to Channel NewsAsia (CNA), DBS Group announced on Monday (6 Nov) that they have recorded an 18% hike in net profits for Q3 this year.
Source: DBS
They reported a net profit of S$2.63 billion for the period of July to September. This increase is better than they had initially projected.
During the same period last year, DBS recorded a net profit of S$2.24 billion. This time, analysts’ average estimate for Q3 came in at around S$2.5 billion prior to the release of the official numbers.
The bank credits this increase to higher interest margins and fee income. For those reasons, DBS is expecting to maintain their earnings at a steady rate next year.
As DBS was one of the banks exposed to the recent suspected money laundering case, they had also made specific allowances of S$197 million, higher than in previous quarters.
Based on all the above factors, DBS will hence pay a dividend of 4.8 cents per share. This brings the total payout for the first nine months of 2023 to S$1.38 per share.
Bank is ‘truly sorry’ for recent disruptions
DBS CEO Piyush Gupta also addressed the string of disruptions the bank experienced over the past few months, per CNA.
Source: Getty via Euromoney
Saying that they are “truly sorry” for the disruptions, Mr Gupta said they will dedicate themselves to carrying out the comprehensive set of measures we recently announced to address the issues.
“We are committed to strengthening our technology resilience and ensuring customer service reliability.”
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Featured image adapted from The Japan Times.
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