By Gaurav Raghuvanshi
SINGAPORE -- DBS Group Holdings Ltd. Monday reported flat net profit and interest income in the third quarter amid rising bad loans due to the bank's exposure to companies that support the offshore oil industry.
Net profit in the September quarter was 1.07 billion Singapore dollars (US$769 million), the same as in the previous year after rounding off.
Net interest income too was nearly flat at S$1.82 billion, compared with S$1.81 billion last year, DBS, Singapore's biggest bank by assets said in a statement to Singapore Exchange.
Total income rose 8% over the previous year to S$2.93 billion, DBS said.
The bank was able to protect its net interest margin at 1.77% in the third quarter versus 1.78% last year, but the ratio of non-performing loans jumped to 1.3% from 0.9% last year.
DBS said it's bad loans ratio rose as it recognised previously disclosed weakness in its loans to oil and gas support services providers. Low oil prices since last year have forced oil exploration and production firms to scale back spending, in turn hurting companies that provide them with vessels and services.
The non-performing loans are "well-collateralized with losses expected to be minimal," the bank said.
Expenses declined 5% on year to S$1.20 billion as the bank cut its operating costs and improved productivity.
Write to Gaurav Raghuvanshi at email@example.com
(END) Dow Jones Newswires
October 30, 2016 20:22 ET (00:22 GMT)
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