[SINGAPORE] DBS shares rose 2.1 per cent or S$0.88 on Thursday (May 8) to reach S$43.64 as at 11.26 am.
This compared with shares of UOB, which inched up 0.03 per cent or S$0.01 to S$34.50 and OCBC, which dipped 0.1 per cent or S$0.01 to S$16.26.
Past midday at 1.13 pm, DBS was up 1.1 per cent or S$0.48 at S$43.24. On the other hand, OCBC was trading 0.8 per cent or S$0.13 lower at S$16.14, and UOB fell 0.3 per cent or S$0.11 to S$34.38.
Earlier this morning, DBS announced that its net profit for its first quarter fell 2 per cent to S$2.9 billion and declared a quarterly dividend of S$0.75 a share.
The bank’s net profit figure was 2 per cent lower than the S$2.95 billion from the year-ago period.
Its earnings beat the S$2.87 billion consensus forecast in a Bloomberg survey of eight analysts.
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At 9.03 am, DBS’ share price was S$43.48, before declining to S$43.285 at 9.40 am. It later traded at S$42.94, before rising 1.9 per cent or S$0.79 to reach S$43.55 as at 11.18 am.
UOB on Wednesday reported a net profit of S$1.49 billion for the three months ended March. This was unchanged from the year-ago period, when the earnings missed the S$1.54 billion consensus forecast in a Bloomberg survey of five analysts.
OCBC’s Q1 results are scheduled to be released on Friday.
In a May 8 report, Tan Yong Hong, vice-president of equity research at Citi, had a “buy” rating on DBS, with a raised target price of S$47.
He noted that the group’s asset quality is robust with non-performing assets (NPA) formation at just 14 basis points, though DBS likely built general allowances given its record topline.
“NPA coverage is at 137 per cent which was 8 percentage points higher quarter on quarter and 12 per cent higher year on year,” wrote Tan.
However, he did acknowledge “uncertainties on loans growth”, which was earlier guided at mid-single-digits.
DBS’ non-performing loans ratio was flat at 1.1 per cent, and the group’s overall net interest margin (NIM) fell to 2.12 per cent for the quarter, from 2.14 per cent in the previous corresponding period. For the commercial book of the bank, its NIM declined by nine basis points to 2.68 per cent.
