DBS flags uncertain outlook as market volatility drives Q3 profit miss
SINGAPORE - Singapore's largest bank, DBS Group, warned on Thursday (Nov 5) of growing global uncertainty due to elevated energy prices, higher interest rates and geopolitical risks as market volatility pushed its earnings lower.DBS, which is also Southeast Asia's biggest lender by assets, said July-September net profit fell 5 per cent to S$2.81 billion from a year earlier, mainly on a decline in markets trading income.The result undershot the mean estimate of S$2.90 billion from four analysts, according to LSEG data, even though its wealth management division posted a strong performance.The group's markets trading income sank 65 per cent year-on-year to S$152 million for the quarter, which DBS attributed to "unfavourable equity market conditions".The bank's net interest margin, a key profitability gauge, fell 9 basis points year-on-year to 1.87 per cent.The decline underscores how surging global bond yields, a rout in high-flying technology stocks last quarter and the ongoing Middle East conflict are beginning to bite into Singapore lenders' earnings after strong wealth management momentum cushioned their bottom lines in the first half.