DBS net profit up 8% to $1.14b in Q2

The strong growth in loans boosted the group's income.

The robust loan growth recorded by DBS in the past quarter has resulted into its total income reaching nearly a quarter high in Q2 and therefore boosting its net profit.

The group said in a statement that its total income hit $2.92b as loans grew 2% and fee income trends were sustained. This contributed to the 8% increase in its net profit to $1.4b.

Its net interest income was 3% higher than a year ago at $1.89b. Loan growth of 6% more than offset the impact of a 13 basis point decline in net interest margin to 1.74%.

DBS's net fee income saw a 1% growth to $636m. An increase in annuity fee income streams, led by double-digit growth in wealth management, was offset by a decline in investment banking and loan-related fees. Other non-interest income fell 13% to $400m.

For the first half-year, its net profit went up 4% higher to $2.35b, as total income reached half-year high of $5.81b.

During the first six months, its net interest income increased 1% to $3.72b, with loans growing 6% to $303b. The strong lending was apparent in areas such as corporate, trade, consumer and Singapore housing. Meanwhile, its net fee income rose 8% to $1.3b. The group's wealth management fees increased significantly to $467m from higher sales of unit trusts and other investment products.

Additionally, the higher trade finance and cash management income resulted in a 7% increase in transaction service fees to $311m. Card fees also grew from increased credit card transactions in Singapore and Hong Kong.

Partially offsetting the growth in these activities were an 18% decline in investment banking fees from lower equity underwriting and a 5% fall in loan-related fees.

On the other hand, the group's other non-interest income fell 14% to $790m due to lower trading gains.