DBS Group Holdings Ltd , Singapore's biggest lender, beat market expectations by reporting stable quarterly profit on Tuesday, underpinned by a record performance in its wealth management business. Chief Executive Piyush Gupta has rapidly expanded wealth management operations, helped by medium-sized acquisitions, while the broader outlook for Singapore banks remains cautious as lenders struggle with their exposure to the stressed oil and gas services sector.
DBS reported net profit of S$1.21 billion ($867 million) in January-March versus S$1.20 billion a year earlier and compared with an average forecast of S$1.09 billion from four estimates compiled by Reuters. Total income was up 1 percent. Net fee and commission income rose 16 percent, driven by a 26 percent jump in wealth management fees to a quarterly record of S$222 million and gains in transaction services and investment banking fees. The bank's net interest income was unchanged at S$1.83 billion as the impact of softer Singapore-dollar interest rates was offset by higher loan volumes. Recently, smaller peer United Overseas Bank posted a rise in quarterly profit on the back of higher net interest income and trading income.
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