The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
The Euromoney 25

DBS: More tech progress, but trade war will hurt

Profits are up, but the markets hits it – for good and bad – for being the bank/tech hybrid Gupta has modelled.

A 76% year-on-year climb in third-quarter net profit, accompanied by a plunge in the share price on the day it is announced: these are complicated times for a bank in Asia, a region in the midst of a worsening trade war.

“Our own sense is that the direct impact of the trade war on the macroeconomics will not be as material as people worry,” chief executive Piyush Gupta said at the results briefing. “What is more worrying is the impact of market sentiment: the indirect impact of the trade war.”

He is right. If you take the sentiment out of it, DBS is doing just fine.

Third-quarter income, up 10%, was a record at S$3.38 billion ($2.47 billion); nine-month profit, at S$4.31 billion, is also a record. Profits are well up because the heavy allowances for oil and gas-support service exposures are now digested, and the formation of new non-performing assets is declining.

Return on equity stands at 12.4% and the balance sheet is strong.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree