DBS down 0.6% despite 3Q net profit better than expected

DBS Group Holdings is down 0.6% to $13.82 deepite its better-than-expected 3Q earnings. The bank posted a 12% rise in net profit to $856 million from $762 million a year earlier and better than the $793.8 million forecast in a Dow Jones poll.

The earnings show continued resilience in the core loans business though pressure on net interest margins has worsened due to loan and deposit yields in China. Allowances are also significantly lower, helping the bottom line, showing the health of the bank's balance sheet.

CEO Piyush Gupta says the bank will focus on managing its "capital efficiently" ahead of Basel III, which suggests possible fund raising initiatives ahead although the bank remains well-capitalised.