Top Singapore-based bank DBS on Tuesday released first-quarter numbers that will make rivals envious. The top line jumped 8% from the three months to the end of December. Expenses fell, meaning the bank used just 38% of its revenue to cover costs compared to 59% at JPMorgan . As a result, the firm run by Piyush Gupta earned almost $2 billion, with an annualised return on equity of 18.6%: both are record highs.
. As a result, the firm run by Piyush Gupta earned almost $2 billion, with an annualised return on equity of 18.6%: both are record highs.
Gupta, though, reckons the bank’s net interest margin, which has jumped to 2.12% from 1.46% in March last year on the back of central banks hiking rates, will start to gradually decline. Net interest income already fell 1% last quarter from December.its status as a safe haven for those – especially rich Chinese people – who want to shield their money from trouble elsewhere, that advantage is also dimming. Deposit growth slowed to 4% from a year earlier after a 12% high in June.
Absent other such calamities or Gupta being wrong about interest rates, this might be as good as it gets for DBS for now.
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