DBS Group Holdings Ltd said profit rose in its second-quarter (2Q), driven by higher lending income though gains were offset by declines in wealth management and investment banking fees.

Net income rose 7% to S$1.82 billion (RM5.87 billion) in the three months ending June 30, Singapore’s biggest lender said in a statement on Thursday. That beat the S$1.69 billion average estimate of four analysts surveyed by Bloomberg News.

DBS’s results capped the earnings season for the city-state’s banks with all three major lenders posting profit increases, though they were capped by a decline in wealth fees as clients stayed cautious amid the global market turmoil.

CEO Piyush Gupta cited risks that included worsening food and energy shortages from Russia’s invasion of Ukraine, causing inflation to remain stubborn. There may also be more aggressive interest rate hikes, he said.

Given the potential headwinds, Asia could see a significant slowdown, with currencies weakening sharply, Gupta said in a statement.

“While the macroeconomic outlook remains uncertain, we will benefit from rapidly rising interest rates and have proven nimble in capturing business opportunities,” he said.  — Bloomberg

• Net interest income climbed 17% in 2Q to S$2.45 billion from a year ago

• Net fee and commission income fell 12% to S$768 million from a year ago due to lower wealth management and investment banking fees

• Fee income likely bottomed in 2Q

• Allowances for credit and other losses fell 42% to S$46 million.