DBS' net profit to slip 11.8% to S$823m

Non-interest income may also fall by 13% qoq to S$713.

According to CIMB:

We expect DBS to report net profit of S$823m (+12% yoy, -11.8% qoq). Net interest income should grow by 2.6% qoq to S$1.38bn. We estimate non-interest income to fall by 13% qoq to S$713m on weaker wealth management and trading performance as volatile markets should lower appetite for wealth management and structured products.

Investment banking fees should hold up, given active fixed-income capital markets and the emergence of some equity deals. Having forged new trade financing relationships over the past few quarters, trade financing-related fees should at least remain stable in 2Q12. If market-related earnings are good, we think that DBS might take the opportunity to pad up credit provisioning, and credit costs could creep up in 2Q12.