DBS, Singapore’s biggest bank, says its profit rose 8.5% on strong loan growth

Munshi Ahmed | Bloomberg | Getty Images

:The DBS Group Holdings Ltd. logo is displayed atop the company’s DBS Asia Hub building in Singapore, on Thursday, Feb. 9, 2012.

DBS Group Holdings, Singapore’s biggest lender, reported an 8.5 percent increase in quarterly profit that came in line with market expectations, boosted by strong loan growth.

DBS, the last local bank to post results, said on Friday that net profit was S$1.14 billion ($840 million) in the three months ended June, versus S$1.05 billion a year earlier and an average forecast of S$1.15 billion from five analysts compiled by Reuters.

DBS said loan growth of 6 percent more than offset the impact of a 13 basis points decline in net interest margin to 1.74 percent.

Last week, Oversea-Chinese Banking reported forecast-beating results, powered by its wealth management business, while profit at United Overseas Bank rose to a 2-year high on strong net interest income.

($1 = 1.3572 Singapore dollars)