Thursday, April 26, 2018
Martin Hennecke

DBS profit dives 35pc on yuan
DBS Hong Kong saw profit down 35 percent to HK$4.018 billion in 2016 pressured mainly by yuan depreciation, but the lender's chief executive said earnings are set to recover this year.

Net interest margin, the difference between the deposit and lending rate, widened by 5 basis points to 1.73 percent. Net interest income was down slightly by 1 percent to HK$7.39 billion dragged by the value of yuan trade bills that went down by 86 percent last year compared to 2015.

Chief executive Sebastian Paredes is optimistic towards the performance this year, seeing recovery in progress and demand for overseas financing from Chinese firms picking up. Capital flight control in the mainland also implies firms have to borrow outside when making overseas acquisitions, he said.

While fee income slipped four percent to HK$2.778 billion year on year, the bank said wealth management income growth was up 15 percent .

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