DBS Bank profit rebounds in Q4, seen gaining as rates outlook improves

'Guidance for 2022 is in line with our current inputs but for the credit costs, and is likely to be the next driver of positive earnings revisions,' Guha said in a note

DBS Group flagged strong business momentum after its profit rose to a record last year, cementing a recovery for Southeast Asia's largest lender as pandemic-hit economies rebound and boost loan growth and asset quality.

Singapore lenders are also expected to be big beneficiaries of rising interest rates, while the city-state's economy is forecast to grow 3% to 5% this year after expanding at its fastest annual pace in over a decade in 2021.

Krishna Guha, an analyst at Jefferies said that while the bank's fourth-quarter profit was slightly below estimates due to lower than expected non-interest income, growth in other revenue metrics