Loans expanded 3.4% qoq and 14.8% yoy, with growth from overseas markets. Net interest margin at 1.99%, slightly lower than 2.04% in 4Q08. DBS experienced a large inflow of funds with customers' deposits up 3.2% qoq to S$130.6b. It also raised S$4b from 1-for-2 rights issues in Jan 09. Loans / deposits ratio dropped from 74.5% in 4Q08 to 72.6% in 1Q09. Margins were affected by lower Singapore interbank interest rates as addtional funds has not been fully deployed in more profitable products.
Fees & commissions rebounded 21% qoq to S$317m with growth from loans related activities and guarantees.
Boost from net trading income of S$204m coming from interest and foreign exchange activities supported by customers' flow. Gained S$106m from sale of fixed income securities.
Group NPL ratio increased from 1.5% to 2.0%, with NPL ratio for Hong Kong increased from 1.7% to 2.6%. DBS made specific provision of S$225m and general provision of S$182m, totaling 124bp.
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