DBS Group Holdings, Southeast Asia's biggest bank, reported a higher-than-expected 21 percent rise in quarterly net profit on Friday, after loan growth lifted interest income and strong capital markets boosted fees.
The Singapore-based bank, in which state investor Temasek Holdings [TEM.UL] has a 28 percent stake, posted a net profit of S$664 million ($438 million) for its second quarter from April to June, compared with S$549 million a year ago and against an average forecast of S$635 million from five analysts polled by Reuters.
Singapore's strong economic growth and a rising property market in Asia have boosted demand for loans. Analysts at Swiss bank UBS expect industry loan growth in Singapore to rise to 12 percent in 2007 and to 15 percent in 2008, from 6 percent last year.
DBS derives about one third of its earnings from Hong Kong, where it also has around a third of its assets. The bank is also in the process of building up its China operation.