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5 Things That I Like About DBS Group Holdings Ltd’s Latest Earnings Update

DBS Group Holdings Ltd (SGX: D05) or DBS in short, is one of the three major banks based out of Singapore, along with United Overseas Bank Ltd (SGX: U11) and Oversea-Chinese Banking Corp Limited (SGX: O39).

DBS Group recently announced its 2018 second-quarter earnings update. Here are five positive things that investors should like about its latest results. But first, let’s run through the company’s numbers.

The Overview

Here’s a quick summary of some key financial metrics for the quarter:

Source: DBS Group’s Result Presentation

Overall, we can see that all the key measures by DBS Group improved on a year-on-year basis. But there are more to like about to these numbers.

1. First of all, total income for the quarter grew 10% year-on-year. The increase come from a double-digit percentage growth from both its net interest income and its fee income.

2. Secondly, DBS Group’s Hong Kong business delivered an exceptional first half performance with total income growing 37% year-on-year while net profit soared 71% compared to the previous year.

3. Thirdly, net interest margin rose to 1.85%, up from the net interest margin of 1.74% in the second-quarter last year.

4. At the same time, DBS Group’s annualized return on equity (ROE) improved from 10.1% a year ago to 11.8% in the latest quarter.

5. Last but not least, DBS Group maintained a sound capital position as of 30 June 2018. The bank’s Common Equity Tier 1 capital adequacy ratio (CAR), Tier 1 CAR and Total CAR were 13.6%, 14.4% and 16.2% respectively. These ratios were well above the respective regulatory requirement of 6.5%, 8%, and 10%.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned. Motley Fool has recommendations for DBS Group Ltd and United Overseas Bank Ltd.