Singapore's leading banks post double-digit growth (Roundup)

May 7, 2010, 7:20 GMT

Singapore - Two of Singapore's leading banks, United Overseas Bank Ltd (UOB) and DBS Group Holdings Ltd (DBS), on Friday posted double-digit growth in net profit for the first quarter 2010, spurred by a sharp drop in bad debt costs and a rise in income.

DBS, South-East Asia's biggest bank, said its net profit for the first quarter increased by 17 per cent to 532 million Singapore dollars (379.4 million US dollars) year-on-year.

Including one-time items of 23 million Singapore dollars for impairment charges for a Thai investment, the rise in net profit was 23 per cent, DBS said.

Allowances for credit and other losses declined by 14 per cent to 355 million Singapore dollars in the first quarter, down from 414 million Singapore dollars a year ago, the bank said.

UOB, ranked third in Singapore, on Friday said its net profit for the three months through March soared 71.2 per cent year-on-year, jumping to 700 million Singapore dollars, up from 409 million Singapore dollars a year ago.

The earnings included a one-time gain of 82 million Singapore dollars from the divestment of UOB Life Insurance, the company added.

Costs for bad debts dropped 71.3 per cent year-on-year to reach 108 million Singapore dollars in the first quarter, UOB said.

The announcements came two days after rival Oversea-Chinese Banking Corp Ltd, the city-state's second largest lender, said its net profit for the first quarter jumped 24 per cent compared to a year earlier, reaching 676 million Singapore dollars.