Singapore’s DBS Q2 profit falls 22% as loan loss provisions increase

SINGAPORE, Aug 6 (Reuters) – Singapore’s DBS Group Holdings reported a 22% fall in second-quarter profit as it increased loan loss allowances in a pandemic-hit market but said business activity was improving as economies emerge from lockdowns.

Southeast Asia’s biggest lender reported profit for the June quarter at S$1.25 billion ($913 million) on Thursday compared with S$1.6 billion a year earlier, and versus an average estimate of S$1.19 billion from five analysts, according to Refinitiv data.

DBS said allowances for loan losses surged to S$849 million in April-June from S$259 million a year earlier but declined 22%from the first quarter.

($1 = 1.3693 Singapore dollars)