Singapore's DBS flags uncertain outlook as market volatility drives Q3 profit miss
SINGAPORE: Singapore's largest bank, DBS Group, warned on Thursday of growing global uncertainty due to elevated energy prices, higher interest rates and geopolitical risks as market volatility pushed its earnings lower.
Singapore's largest bank, DBS Group, has warned of a declining outlook due to global uncertainty and market volatility in its third quarter results. The bank's net profit for the July-September period fell five percent to S$2.81 billion (US$2.20 billion), missing estimates of S$2.90 billion. The decline in market trading income, down 65 percent year-on-year to S$152 million, was the main contributor to the result.
DBS attributed this to unfavorable equity market conditions, while its wealth management division posted strong performance. The bank's net interest margin, a key profitability gauge, fell 9 basis points to 1.87 percent. CEO Tan Su Shan said the global economy remains resilient, but the outlook is becoming more uncertain due to rising energy prices, higher interest rates, and geopolitical risks.
DBS expects total income to grow in the mid-single-digit range for 2027, if two more US Federal Reserve rate hikes occur, alongside a gradual rise in domestic interest rates and the Singapore dollar.
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