DBS' 3Q net profit poised to beat market expectations

Despite a possible dip by 1%.

CIMB expects DBS to report 3Q13 net profit of S$880m (-1% qoq), higher than consensus expectations of S$823m. 2Q13 earnings (S$887m) were slightly inflated because of the one-off gains from the sale of certain Hong Kong properties, which results in a high base effect that makes it harder for 3Q13 net profit to beat that of 2Q13.

Here's more from CIMB:

Back then, the tailwinds from 2Q13 that was supposed to carry over to 3Q13 include a recovery in trade finance loan growth, along with the associated trade fees and treasury income.

Although management guidance earlier in 3Q stated that these trade drivers were still valid, we believe that the slowdown in Asian trade means that DBS is likely make a less sanguine guidance of its trade finance activity.

On credit costs, we factor in similar levels of provisioning (40bp of loans). We are keen to see if stresses in the small Indian SME segment have affected the rest of its Indian loan book.

Also Read

Bangkok Bank logs net profit of $1.05b for 9M 2024

Banks face value creation challenge despite record revenues

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit