Singapore's biggest bank DBS Group reported a stronger-than-expected 43 per cent jump in first quarter profit to a new high from a year earlier on a higher net interest margin, sustained business momentum and resilient asset quality.
"We delivered a record performance and benefited from safe haven deposit inflows during a quarter marked by increased market volatility," said DBS chief executive officer Piyush Gupta in a statement.
DBS, which is also Southeast Asia's largest lender by assets, said January to March net profit rose to S$2.57 billion (US$1.92 billion) from S$1.8 billion a year ago, beating a mean estimate of S$2.44 billion from five analysts polled by Refinitiv.
Return on equity rose to a new high of 18.6 per cent in the first quarter from 13.1 per cent the same quarter a year earlier, according to its financial statement.
It reported a total net interest margin, a key gauge of profitability, of 2.12 per cent for the first quarter, up from 1.46 per cent in the same period a year earlier, according to its financial statement.
Singapore banks have been benefiting from a strong inflow of deposits amid global uncertainty due to their status as a financial safe haven.
Smaller peer United Overseas Bank reported on Thursday (Apr 27) a 74% surge in core net profit in the first quarter from a year earlier on the back of strong net interest and non- interest income growth.
Oversea-Chinese Banking is due to announces its first quarter results on May 10.
DBS, which earns most of its profit from Singapore and Hong Kong, declared a dividend of 42 Singapore cents per share for the first quarter.