DBS’ net profit slips 6% to $1.05b

The Group’s bad debt rose to $150 million.

Still battered by the Swiber fiasco, DBS’ net profit dropped 6% to $1.05 billion in 2Q16 YoY due to uncollectible debt.

According to DBS, the group’s total income inched up 6% to $5.78 billion in 1H16 YoY, but the results included a net allowance charge of $150 million for its exposure to the Swiber group after drawing $250 million from general allowance reserves. Cumulative general allowance reserves continued to be high at SGD 2.95 billion, it added.

“We achieved two consecutive quarters of record total income despite a challenging operating environment in the first half. The strong income growth in the second quarter enabled profit before allowances to grow 10%. Despite an unexpected significant allowance charge, first-half earnings were at a record,” DBS CEO Piyush Gupta said.