DBS' net interest margin in Hong Kong impressed analysts

Net profit surged 14.6% to $635m.

According to UOB Kayhian, DBS Group Holdings (DBS) has a strong management team led by CEO Piyush Gupta, which has demonstrated an ability to generate organic growth.

It unveiled its nine strategic priorities in Feb 10. Since then, the blueprint has generated organic growth with net interest income and non-interest income expanding at 3-year CAGR of 5.9% and 14.6% respectively in 2009-12.

Here's more from UOB Kayhian:

For 9M13, net interest income increased 3.1% while non-interest income grew 25.9%.

NIM in Hong Kong has improved through reduction of exposure to housing loans and shifting to corporate loans, including SME loans and trade finance facilities.

DBS generated growth in non-interest income from wealth management and offshore renminbi (CNH) activities. DBS Hong Kong achieved 14.6% growth in net profit to S$635m in 9M13, which accounted for 23.5% of group net profit.