DBS Q1 profit falls to 2-1/2-yr low on coronavirus loan loss provisions

Credit: REUTERS/Edgar Su

Singapore's DBS Group Holdings set aside S$1.09 billion ($772.5 million) to cover the impact of the coronavirus pandemic as Southeast Asia's biggest lender reported a 29% fall in first-quarter profit to the lowest in 2-1/2 years.

Adds milestone and para on dividend

SINGAPORE, April 30 (Reuters) - Singapore's DBS Group Holdings DBSM.SI set aside S$1.09 billion ($772.5 million) to cover the impact of the coronavirus pandemic as Southeast Asia's biggest lender reported a 29% fall in first-quarter profit to the lowest in 2-1/2 years.

DBS said provisions for credit losses surged in January-March from S$76 million a year earlier. They were well above an average estimate of S$605 million, according to Refinitiv data.

First-quarter profit fell to S$1.16 billion compared with S$1.65 billion a year earlier, in line with an average estimate of S$1.13 billion from four analysts, according to Refinitiv data.

DBS said it set aside the allowances "to accelerate the build-up of reserves", with two-thirds of the amount kept for general allowances to anticipate a "deeper and more prolonged economic impact from the pandemic." The remainder was for specific allowances, mainly for new exposures recognised as non-performing during the quarter.

DBS, which pays quarterly dividends, retained its proposed dividend of 33 Singapore cents per share for the latest quarter.

($1 = 1.4110 Singapore dollars)

(Reporting by Anshuman Daga; Editing by Kim Coghill)

((anshuman.daga@tr.com;))

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