HONG KONG: DBS Hong Kong, a local unit of Singapore-listed DBS Group, saw net profit for the first three months of the year rise 25 percent to HK$1.4 billion from the end of 2014, with net interest margin staying flat.
But from the same period last year, first-quarter profit slumped 18 percent due to the cost of acquiring Societe Generale’s private banking business and consolidating a credit card joint venture.
Net interest income rose 10 percent to HK$1.8 billion from last year, boosted by higher corporate loans although trade loans and housing loans reduced.
Income from fees grew 11 percent but other non-interest income fell 30 percent, affected by uncertainty over the yuan.
Total first-quarter profit for the DBS Group rose to a record S$1.27 billion (HK$7.38 billion), up 10 percent from a year back, excluding one-time gains.
Separately, unlisted Shanghai Commercial Bank said it earned HK$1.90 billion profit last year, up 6.3 percent from the year before.
Net interest income jumped 14.1 percent to HK$2.52 billion, with net interest margin widening to 1.81 percent from 1.68 percent.
Chief executive David Kwok Sek-chi said its profit and quality of loans are healthy because the bank did not lend much to the mainland market.
Many enterprises have expressed an interest in acquiring the bank, but the shareholders currently have no intention to sell, Kwok said.
SCB has no plans to list in the SAR either, Kwok added.
