DBS posted 3Q18 net earnings of S$1.41b this morning, slightly below Bloomberg consensus of S$1.44b, but this is still a strong set of results, up 76% YoY and +6% QoQ. This brought 9-month net earnings to S$4.26 billion, up 34%.

Net Interest Income rose 15% YoY and 2% QoQ to S$2.27b. Net Interest Margin (NIM) improved from 1.73% in 3Q17 and 1.85% in 2Q18 to 1.86% in 3Q18. Non-interest Income rose 2% YoY and 13% QoQ to S$1.10b.

On Fee and Commission Income, the decline in investment banking was made up from the rise in loan-related income. Allowances declined YoY from S$815m in 3Q17, but were up from 2Q18’s S$105m to S$236m in 3Q18. NPL ratio was stable at 1.6%.

We will provide more details after the analyst’s briefing later this morning. Meantime, do note we have a BUY on the stock.

Source: OCBC Research - 5 Nov 2018