...November 8, 2023 SINGAPORE (S&P Global Ratings) Nov. 8, 2023--S&P Global Ratings said today that DBS Bank Ltd. is showing good profit momentum on the back of higher-for-longer interest rates. Interest margins have risen for seven consecutive quarters to reach 2.19% as of the third quarter of 2023. This has been a boon for interest revenue from its core lending portfolio. However, the Singapore-based bank's loans growth has been tepid at 2.7% over the three quarters. We believe full-year growth will likely come in at the lower end of our 3%-5% projections. Companies have become more circumspect about taking on loans as borrowing costs go up, with some paying down on their obligations. We believe the overall rising interest margin and slowing loans growth dynamic is a net positive profit driver, with higher spreads more than offsetting lower volumes. Meanwhile, asset quality remains healthy with a 1.2% nonperforming loan ratio as of third quarter 2023. Capitalization and liquidity ratios...
