DBS Group reported a net profit of about $829 million (SGD 1.17 billion) for the first quarter of 2020, a 29% decline from a year ago, as it pre-emptively set aside a further $498 million (SGD 703 million) of general allowances for risks arising from the ongoing coronavirus disease pandemic.
The charge increased the amount of general allowance reserves by 29% to about $2.3 billion (SGD 3.23 billion) to fortify the balance sheet.
Meanwhile, the total income grew by 13% from a year ago to a new high of roughly $2.9 billion (SGD 4.03 billion). Business momentum was healthy with broad-based growth in non-trade corporate loans and fee income. Gains from investment securities also contributed to the increase in total income.
DBS’ chief executive officer Piyush Gupta said, “Our record operating performance in the first quarter has given us a head start to face the challenges of the coming year. While the economic outlook remains uncertain and credit risks have increased, the digital investments we have made have strengthened the resilience and efficiency of our franchise, and we remain committed to serving our customers.”
“We will maintain a solid balance sheet with ample capital, liquidity and loss allowance reserves that give us strong buffers to absorb external shocks,” Gupta added.
Re-disseminated by The Asian Banker