DBS beats expectations with 1% net profit rise to S$862m

Net interest income notched a new high.

DBS posted 3Q13 net earnings of S$862m (+1% YoY and -3% QoQ) which were slightly better than Bloomberg's consensus estimate of S$839.4m, reports OCBC.

DBS results revealed that net interest income rose 6% YoY or 2% QoQ to a new high of S$1.41b. Loans grew 19% to S$242b. Net interest margin (NIM) eased off slightly from 1.62% in the last quarter to 1.60% in 3Q13.

Non-interest income increased 11% YoY to S$744m, which OCBC notes "benefited from several contributors including Fee Income (+9% YoY to S$462m) and Trading Income (+45% YoY
to S$188m)."

"For the former, this was led by better contributions from Trade and Transaction Services, Wealth Management and Cards," adds OCBC, resulting in Total income growing 7% YoY (or down 7%) to S$2.15b.

Meanwhile, Core Equity Tier 1 ratio was 13.3%, Tier 1 was 13.3%, and Total Capital Adequacy Ratio was 15.9% as of Sep 2013.