DBS Bank posted their 3Q FY 2016 earning report in summary below. It was a resilient 3Q operating performance underpinned by income growth and cost containment. These strong operating results provide substantial headroom for higher allowances to be taken as prudent measure.

• Net Profit increase 2% to $1.071 billion
• Total Income stable on quarter to $2.93 billion
• Expenses decline 7% on quarter to $1.2 billion
• Profit before allowances increase 6% on quarter to $1.73 billion

The marginally increase of 2% net profit was due to an increase in general and specific allowances. Profit before allowances increase 19% y-o-y led by higher contributions from wealth management and investment banking. The asset quality continued to be sound. Non-Performing Loan (NPL) rate rose moderately to 1.3%. Allowance coverage was at 100% and 204% with collateral. Total allowances more than doubled to $169 million, which were taken as ......