DBS’s Next CEO Won’t Enjoy the View From the Peak
The June quarter profit may be as good as it gets. Tan Su Shan will ride the rates rollercoaster down.
August 7, 2024 at 6:30 PM GMT+8
Updated on
August 8, 2024 at 9:05 AM GMT+8
By
Andy Mukherjee
Andy Mukherjee is a Bloomberg Opinion columnist covering industrial companies and financial services in Asia. Previously, he worked for Reuters, the Straits Times and Bloomberg News.
It won’t last.
Photographer: Suhaimi Abdullah/Bloomberg
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DBS Group Holdings Ltd.’s
better-than-expected profit is a snapshot of the global interest-rate rollercoaster at its highest point. Investors should savor the sight from the peak. It won’t last.
The net interest income on commercial lending rose to almost as high as S$3.8 billion ($2.8 billion) in the June quarter. That’s 88% more than what the Singapore-based lender was making on advances before the US Federal Reserve began increasing interest rates in March 2022 from nearly zero. The target fed funds rate is currently 5.25% to 5.5%.