Analyst Note| Michael Wu, CAIA |
It was a good second quarter for DBS Group, with quarterly net profit at SGD 1.7 billion, compared with SGD 2 billion last quarter and SGD 1.2 billion the same period last year. In line with peers, the comparable was skewed by lower credit cost the same period last year and a strong comparable period last quarter. The latter saw wealth management income weaker, dragging overall fee income 9% lower against last quarter. Trading income was also lower. The outlook was generally positive, with management revising loan growth guidance to high- single-digit. Net fee income is expected to increase by midsingle digits while asset quality remains resilient.