DBS Group Holdings Ltd. posted quarterly earnings that missed analyst estimates, as a tumble in markets trading income dampened gains from lending and wealth. The bank also announced that Anthony Lim will become its new chairman effective Jan. 1, with Peter Seah retiring on Dec. 31 and staying on as a senior advisor for a year.
Singapore's largest lender reported a 5% decrease in net profit to S$2.81 billion ($2.2 billion) for the three months ended Sept. 30 compared to a year earlier, it said in a statement on Thursday. That was lower than the S$2.96 billion average estimate of analysts surveyed by Bloomberg News. Markets trading income fell 65% to S$152 million due to unfavourable market conditions, while the group net interest margin declined nine basis points to 1.87%.
Chief Executive Officer Tan Su Shan said the global economy has remained resilient, but the outlook has become more uncertain amid elevated energy prices, tighter financial conditions and geopolitical risks. She praised Lim for bringing invaluable perspectives on geopolitics, risk management and organizational leadership. Tan also gave a cautious outlook for 2027, saying total income growth will likely be in a mid single-digit percentage range, assuming two more rate hikes in the US.
The wealth business remained a bright spot, with assets under management reaching a record S$544 billion and net new money totaling S$15 billion for the quarter. However, wealth fees of S$864 million fell below analysts' estimates. The bank declared a total dividend of 81 Singapore cents a share. Shares of DBS fell more than 2% at the start of trading on Thursday, while rival UOB declined 3%.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing