DBS Group, Singapore's largest bank, reported higher net profit in the second quarter, supported by strong net fee and commission income.
Net profit for the April-June period rose 1.25% from a year earlier to 2.82 billion Singapore dollars, equivalent to US$2.19 billion, the lender said Thursday. That beat the S$2.76 billion consensus estimate of analysts polled by Visible Alpha.
Total income increased by 4.6% to S$5.73 billion driven by broad-based growth.
Net fee and commission income for its commercial book rose 11% to S$1.17 billion, supported mainly by a rise in wealth management fees.
Net interest income for its commercial book declined 3.8% to S$3.63 billion due to a 28-basis-point decline in net interest margin from the U.S. Fed rate cuts, lower Singapore Overnight Rate Average and Hong Kong Interbank Offered Rate.
Allowances for credit and other losses was S$133 million, down from S$148 million on the year.
"While external uncertainties remain, we have opportunities ahead of us. Our proactive management of the balance sheet puts us in a good position to navigate the interest rate cycle, while strong capital and liquidity ensure we are well placed to support customers," DBS chief executive Tan Su Shan said.
DBS results capped off a week of mixed earnings for Singapore's big three lenders. United Overseas Bank and Oversea-Chinese Banking Corp. reported weaker second-quarter net profit.