DBS Group announced third-quarter profit that missed estimates despite solid gains from the wealth unit.
Citing higher allowances for credit and other losses Net income for the three months to September fell 23 percent to S$822 million down from S$1.07 billion at the same point last year, below some analysts forecasts. Singapore's largest lender has also almost doubled its specific provisions for bad debts.
The wealth management segment income rose by 25 percent to S$1.57 billion with assets under management increasing by 23 percent to reach S$195 billion, including S$15 billion from the ANZ acquisition. DBS' wealth unit includes its upmarket retail offering Treasures and Treasures Private Client units as well as its Private Bank.
Underlying headcount fell by 1 percent in tandem with efficiency gains from ongoing technology and cost-management initiatives. The cost-income ratio now stands at 43 percent.
According to chief executive Piyush Gupta the high profile digitalisation efforts are now progressively transforming the bank. The bank recently launched a banking application programming interface platform (API) for developers that is the largest by a financial institution.
