Singapore’s DBS says Q2 net profit up 10pct, above expectations

04-Aug-2012 Intellasia | Asiaone | 7:01 AM

Singapore’s DBS, Southeast Asia’s biggest lender, posted on Friday a 10 per cent rise in second-quarter net profit, helped by strong loan growth and a drop in bad debt charges.

The bank warned that it expects a little pressure on interest margins especially in China and sees some headwinds ahead for loan growth despite a healthy credit pipeline.

DBS made a net profit of S$810 million (US$651 million) for April-June against a net profit of S$735 million a year ago.

That compared with an average forecast of S$795 million, according to six analysts surveyed by Reuters.

Analysts are expecting the bank to begin a formal regulatory application process for its planned S$7.2 billion acquisition of Indonesia’s Bank Danamon after Indonesia came up with new rules to restrict ownership of banks, but allowed some exceptions.

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