DBS Q3 profit beats view on wealth fees

12 November, 2019 12:00 AM printer

SINGAPORE: DBS Group Holdings, Southeast Asia’s biggest lender, reported that higher wealth management fees drove a forecast-beating 15 per cent rise in third-quarter profit, but cautioned growth will slow next year due to the impact of lower interest rates.

The Singaporean bank said on Monday it expects its net interest margin, a key gauge of profitability, to fall by about 7 basis points in 2020. It was 1.90 per cent for the three months ended Sep 30, report agencies.

Singapore’s banks face a challenging outlook as interest rates soften and lending moderates after robust growth in recent years. DBS made a net profit of S$1.63 billion for the quarter, compared with S$1.41 billion a year earlier and an average estimate of S$1.57 billion from five analysts, according to Refinitiv data.