DBS Group, Singapore's biggest bank, on Monday (Nov 2) posted a 6 per cent rise in third-quarter net profit, beating expectations as higher interest rate margins boosted net interest income by 13 per cent.
DBS said net profit came to S$1.07 billion for the July to September period, versus S$1.01 billion in the same period a year earlier and above an average forecast of S$994 million from six analysts polled by Reuters.
The bank also booked charges of S$50 million to its trading income due to what it called "funding valuation adjustments" to the fair value of over-the-counter derivatives.
Earnings are slowing for Singapore banks as loan growth decelerates due to a sluggish economy, a weak property market and the lacklustre trade finance business.
United Overseas Bank last week posted a 1 per cent drop in quarterly net profit, while Oversea-Chinese Banking Corp saw a 7 per cent increase in core third-quarter net profit, but also showed a spike in bad loans.