DBS Hong Kong 9-month net up 10% to HK$4.3bn

    DBS Hong Kong said its net profit for the first nine months of 2014 rose 10% from a year ago to a record of HK$4.3 billion.
  Net profit for the third quarter was HK$1.4 billion, an increase of 42% year-on-year and 13% quarter-on-quarter.
  Net interest income for the first nine months increased 6%, or HK$260 million, to HK$4.9 billion as average loan volumes and net interest margin were higher. Net interest margin rose one basis point to 1.55% as a shift in the loan mix from trade to higher-yielding corporate loans was offset by an increase in deposit costs.
  Non-interest income declined 8% or HK$367 million to HK$3.9 billion.
  If property disposal gains of 2013 were excluded, non-interest income fell by 2% as the increase in fee income was offset by the decline in treasury sales income. Fee income increased 17%, led by higher debt capital market, transaction services and cards contributions. The decline in treasury sales income was mainly due to lower customer flow in the second quarter affected by the depreciation of the RMB.
  Expenses rose 5% or HK$144 million to HK$3.4 billion. The cost-income ratio was maintained at 39%. Asset quality remained healthy with the NPL ratio kept stable at 0.5%. Total allowances fell to HK$134 million due to lower general allowances in line with loan movement.