DBS

DBS: 3Q11 results above expectations, may provide some support in an expected weak market.
Net profit rose to $762m, +6% yoy, +4% qoq, beating consensus’ estimates of $682m. This came on the back of strongn loan and fee and commission income growth.
Net interest income rose 13% on year, up 1% on quarter to $1.21b and non-interest income rose 3.2% on year, up 18% on quarter to $754m.
Net interest margin continued to remain weak, to 1.73%, down 7 bps on year and flat on quarter, which should come as no surprise; perhaps more encouraging is the improvement in NPL ratio to 1.3 from 2.1 last year and 1.5 in 2Q, as after strong loan growth this year and with macro economic headwinds, analysts begin to look at asset quality as an issue going forward.
DBS shares closed down 3.1% Tuesday at $11.98.