© Reuters. FILE PHOTO: A emblem of DBS financial institution is seen in Taipei, Taiwan, January 28, 2022. REUTERS/Ann Wang
By Anshuman Daga
SINGAPORE (Reuters) -Singapore lenders DBS Group (OTC:) and OCBC each reported 10% declines in quarterly earnings, which nonetheless topped analysts’ estimates after report outcomes a yr in the past, however their wealth administration companies suffered in weaker markets.
“The market may even look forward for indicators, and see the beginnings of advantages on margin uplift, and first rate mortgage development of 8-9%,” Kevin Kwek, a senior analyst at Sanford C. Bernstein, mentioned on Friday.
Buoyed by the better-than-expected outcomes, DBS shares rose 3.4% whereas OCBC jumped 3.6% in a broader market that was up 1%.
Singapore banks face a troublesome comparability after notching up bumper earnings a yr earlier after they benefited from a powerful restoration from pandemic-hit markets.
“Geopolitical developments in current weeks have created macroeconomic headwinds and monetary market volatility,” DBS Chief Govt Piyush Gupta, mentioned in a press release on Friday.
“Whereas some actions similar to wealth administration will likely be affected, our total enterprise pipeline continues to be wholesome,” he mentioned, including that DBS would profit considerably from rate of interest will increase within the coming quarters.
Web revenue at Southeast Asia’s greatest financial institution fell to S$1.8 billion ($1.30 billion) in January-March from a report S$2 billion a yr earlier however got here in above a median estimate of S$1.63 billion from six analysts, in response to Refinitiv knowledge.
Second-ranked OCBC posted a first-quarter revenue of S$1.36 billion, down from S$1.5 billion a yr earlier, however this additionally got here above a median estimate of S$1.2 billion from six analysts, in response to Refinitiv knowledge.
OCBC counts Singapore, Higher China and Malaysia, amongst its key markets, whereas DBS earns most of its revenue from Singapore and Hong Kong.
Singapore’s economic system, which is benefiting from political uncertainty and pandemic pains elsewhere in Asia, is about to broaden 3% to five% this yr.
On Friday, Singapore’s United Abroad Financial institution (OTC:) additionally reported a ten% fall in web revenue to S$906 million versus common market estimate of S$1 billion.
Earlier this yr, DBS and UOB individually snapped up retail belongings offered by Citibank in Southeast Asian markets and Taiwan, because the lenders broaden regionally.
($1 = 1.3868 Singapore {dollars})
