|
SINGAPORE (AFP) - - Singapore banks warned Thursday of tougher times ahead after reporting mixed results for the second quarter as economic growth slowed and financial markets struggled
Net profits in the June quarter rose at Southeast Asia's largest lender DBS Group and at United Overseas Bank (UOB), but fell at Oversea-Chinese Banking Corp (OCBC).
DBS said it had made a profit of 652 million Singapore dollars (476 million US) in the three months to June, up 16 percent year-on-year, but chief executive Richard Stanley said it would remain vigilant.
"We will continue to be watchful and vigilant in the months ahead as the operating environment becomes increasingly challenging," he said.
Analyst David Lum from Daiwa said the only blip on DBS' second quarter results was the fall in net interest margins, a key measure of bank profitability.
"DBS was the only one of the three Singapore banks to report a decline in net interest margins," said Lum, referring to the trio that put out figures this week. "That was probably the only disappointing aspect of its results."
OCBC, the smallest of the three banks, said Thursday its net profit sank 20 percent to 425 million dollars because of weaker contributions from its insurance arm Great Eastern Holdings and its brokerage business.
Great Eastern Holdings contributed 3.0 million dollars to OCBC net profits in the June quarter, down sharply from 116 million dollars the year before, while brokerage income fell 47 percent to 19 million dollars.
"Our first half performance was affected by the volatile markets impacting Great Eastern's results and the bank's trading income," said OCBC chief executive David Conner.
"While we are on alert due to possible further weakening of the global economy, we will continue to strengthen our presence in our primary markets."
UOB, which released its earnings on Tuesday, reported a 2.7 percent rise in net profit to 601 million dollars.
The bank also sees a more challenging environment as financial institutions adjust to slower growth and inflation concerns.
"The past six months have been challenging and it's not going to be any easier as global institutions seek ways to rebuild their balance sheet and economies cope with slowdown and inflation," said UOB deputy chairman Wee Ee Cheong.
"We are mindful of the risks amidst these challenges and will remain prudent and disciplined in managing our business."
 |
Is this article useful to you?
|
|
|
|
|
|
| 
