The building of DBS, Singapore's largest bank, in the city's central business district.
Suhaimi Abdullah | Getty Images News | Getty Images
DBS Group Holdings, the largest bank in Singapore and Southeast Asia, reported a 22% year-on-year decrease in net income in the second quarter as more money was earmarked for credit losses that could result from the economic impact of the coronavirus pandemic.
The bank announced on Thursday that net profit fell to $ 1.25 billion ($ 912.9 million) from April to June, compared to $ 1.6 billion last year. It surpassed the refinitive estimate of around $ 1.19 billion in Singapore.
Here are the other financial indicators reported by DBS:
Total loan loss provisions in the second quarter were $ 849 million ($ 620 million), compared to $ 251 million in the previous year. Total revenue was roughly constant at $ 3.73 billion. The net interest margin was a measure of the profitability of lending. The ratio of non-performing loans was unchanged from the previous year at 1.5%, compared to 1.91% in the previous year.
The bank said in a profit release statement that multiple income streams are improving as economies facilitate lockdown measures designed to slow the spread of the corona virus.
Regardless, smaller rival United Overseas Bank saw second quarter net income decline 40% year-over-year to $ 703 million ($ 513.4 million) – under Refinitiv's estimates.
UOB issued additional $ 379 million ($ 276.8 million) in certificates in the quarter, given the impact of COVID-19.