DBS' net profit down 5% to $1.2b in Q1

Blame it on a one-off item last year.

DBS’ net profit slipped 5% year-on-year to $1.2 billion in the first quarter, mainly due to a one-off gain of $136 million related to the sale of an investment property recorded in the same period last year.

Excluding this one-off item, the group’s net profit was 6% higher than a year ago. Total income reached a new high, rising 5% to $2.87 billion as net interest income grew 8% to $1.83 billion.

The bank’s non-performing loan ratio rose to 1.0% while specific allowances increased 6% to $170 million, both of which were in line with earlier guidance. Non-performing assets rose 9% from the previous quarter to $3.05 billion, with increases led by Hong Kong and India partially offset by declines in the rest of the world.

Loans declined 1% in constant currency terms to SGD 274 billion. A 23% contraction in trade loans was offset by a 3% increase in non-trade loans from corporate borrowing and a 13% increase in Singapore housing loans. Net interest margin improved 16 basis points to 1.85% in line with higher Singapore dollar interest rates