DBS records 52% jump in Q1 profit

Singapore's DBS Group Holdings said its first quarter, 2011, net profit rose to a record SGD 807 million, up 52% from a year ago.

Total income reached a new high of SGD 1.91 billion as the implementation of DBS's strategic initiatives gained momentum and DBS was able to capture opportunities across the region.

Sustained loan expansion and stable margins resulted in higher net interest income, while stronger contributions from customer-related treasury sales, capital markets and wealth management boosted non-interest income.

Net interest income rose 1% vis-a-vis the previous quarter to SGD 1.12 billion.

Loans grew four% during the quarter to SGD 157.5 billion as corporate borrowing in Singapore, Hong Kong and other Asian markets remained strong in line with the region's continued economic expansion.

While the interest rate environment remained soft, balance sheet management efforts helped net interest margins to remain stable from the previous quarter at 1.80%.

"Going forward, while the global economy remains fraught with uncertainty and the interest rate climate continues to provide headwinds, we believe that efforts to strengthen our franchise in Asia will continue to bear fruit," said DBS in a statement.