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.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Singapore's DBS bank posts record Q1 profit, beating estimatesSingapore's biggest bank DBS Group reported record first-quarter profit on Tuesday, rising a stronger-than-expected 43% from a year earlier on a higher net interest margin, sustained business momentum and resilient asset quality.
Leer más »
Singapore's DBS Bank posts record first-quarter profit, beating estimatesSingapore banks have benefited from a strong inflow of deposits amid global uncertainty due to their status as a financial safe haven.
Leer más »
Singapore's DBS posts record Q1 profit, expects margins to decline as rates peakDBS Group posted record first-quarter profit, with Singapore's biggest bank saying it had benefited from inflows from depositors seeking a safe haven amid the global banking turmoil, and uncertainty over the world economy and geopolitics.
Leer más »
Breakingviews - Tech groupthink could hinder AI competitionEveryone wants a piece of OpenAI, the startup behind artificial intelligence-powered chatbot ChatGPT. After raising $10 billion from technology giant Microsoft , the company has raked in another $300 million from venture capital’s leading lights, including Andreessen Horowitz and Sequoia Capital, TechCrunch reported. Its competitors may struggle to find backers with deep enough pockets to help them unseat the reigning leader.
Leer más »
Breakingviews - Jamie Dimon bails out First Republic – and FDICJamie Dimon is back at the bailout rodeo. After buying Bear Stearns 15 years ago left a bad taste in his mouth, JPMorgan’s CEO said he’d never ride to the rescue again. In the wee hours of Monday morning, however, he agreed to take mid-sized First Republic Bank out of receivership from the Federal Deposit Insurance Corp. It relieves pressure on taxpayers for now and should benefit his mega-bank’s shareholders, but suggests U.S. authorities don’t have a handle on how to rescue collapsing lenders without further entrenching a risky too-big-to-fail mentality.
Leer más »
Breakingviews - China’s Midea regains outbound deal appetiteMidea , a $58 billion Chinese white goods champion, made waves in Europe in 2016 when it bought German robot maker Kuka for nearly $5 billion. Seven years later, the company is eyeing Sweden’s home appliance brand Electrolux , a complementary asset currently worth around $7 billion including debt. A successful tilt could mark the beginning of a revival in outbound M&A by Chinese firms after offshore deals touched a historic low of $29 billion in 2022, per EY estimates.
Leer más »