DBS Group posted 2Q15 net earnings of S$1117m, up 15% YoY and down 12% QoQ, and above market expectations of S$1075m based on a Bloomberg poll. Total income grew rose 16% YoY and was down 6% QoQ to S$2690mn as both net interest income and fee income reached new quarterly highs.

The lower QoQ performance was largely due to a one-time gain of S$136m recorded in 1Q15 for the disposal of a property investment in Hong Kong. Net Interest Margin (NIM) rose from 1.67% in 2Q14 and 1.69% in 1Q15 to 1.75% this quarter – the highest in 13 quarters. A first-half dividend of 30 cents per share was declared, higher than 28 cents in 1H14.

We will provide more details after the analysts’ briefing later in the day. Meantime, do note that we have a BUY rating for DBS and we will re-visit our forecast and fair values estimate after the result briefing.

Source: OCBC Research - 27 Jul 2015