SINGAPORE (July 29): DBS Group Holdings may have achieved 11% growth in total income of S$7.26 billion and 12% growth in net profit of S$3.254 billion for 1HFY2019, but these growth rates may not be repeated in the second half, cautions CEO Piyush Gupta.

If US Federal Reserve chairman Jerome Powell cuts the Fed Funds Rate by 25 bps on July 30, DBS’s net interest margins are likely to ease by 1bps, to 1.90% in 3QFY2019, compared to a 2QFY2019 NIM of 1.91%. If the Fed cuts a further 25 bps off the FFR later this year, DBS NIMs are likely to ease by a further 1bp to 2 bps to 1.88%. “We will wind up with NIM of 1.89% to 1.90% for the year,” Gupta says.

And although business momentum remains healthy, DBS is unlikely to witness double-digit income growth in the second half. Instead, Gupta expects it to...(click on link for full story on theedgesingapore.com)