SINGAPORE (Reuters) - DBS Group Holdings Ltd, Singapore's biggest lender, beat market estimates with a 26 percent rise in first-quarter net profit to a record high, powered by strong loan growth in a strengthening economy.
The robust showing by DBS, which kicked off results for the sector, comes after the bank and its peers OCBC and United Overseas Bank posted record profits last year on broad-based growth in businesses such as wealth management.
For the latest quarter ended March 31, DBS' net profit came in at S$1.52 billion ($1.15 billion), versus S$1.21 billion a year earlier and an average forecast of S$1.43 billion from four estimates compiled by Thomson Reuters.
Total income rose 16 percent to S$3.36 billion.
"Our pipeline is healthy and we expect to continue capturing business opportunities and delivering shareholder returns in the coming year," CEO Piyush Gupta said in a statement.
DBS' net interest margin improved 9 basis points to 1.83 percent on higher interest rates. Loans expanded 13 percent in constant-currency terms to S$328 billion.
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The bank's net fee income rose 12 percent to S$744 million, with wealth management fees rising by an underlying 31 percent to S$331 million. Allowances for bad debts fell 18 percent.
($1 = 1.3241 Singapore dollars)
(Reporting by Anshuman Daga; Editing by Himani Sarkar)