DBS Hong Kong Net Profit Hits Record HK$6.15 Billion

February 23, 2016

NewsStandOnline.Net (23-February-2016): DBS Bank (Hong Kong) Ltd. posted a record net profit of HK$6.15 billion (US$790 million) for 2015, up 14 percent from the previous year, as net interest margin expanded, the Hong Kong Economic Journal reported earlier today.

The bank expects a rise in the non-performing loan ratio in the market in the next two years given slowing economic growth in mainland China and oversupply in certain sectors, chief executive Sebastian Paredes said.

Nonetheless, Paredes said the bank’s bad-loan ratio will not deteriorate drastically unless the renminbi is significantly devalued.

DBS Hong Kong Net Profit Hits Record HK$6.15 Billion

The bank’s net interest income jumped 12 percent to HK$7.48 billion, and net interest margin rose 0.01 percentage point to 1.68 percent.

Non-interest income, meanwhile, increased 11 percent to HK$5.42 billion.  The non-performing loan ratio rose to 0.8 percent at the end of 2015 from 0.6 percent in June last year.

The bank said it will continue to expand its business, especially in retail banking and services to small and medium-sized enterprises.