DBS Group Holdings announced a net profit of $2 billion, up 99% q-o-q and 72% y-o-y. It was not a surprise. DBS has gross provision reserves of $4.13 billion, exceeding the Monetary Authority of SIngapore’s minimum requirement by 31% and Tier 2 eligibility by $1.3 billion.

Of the $4.13 billion in general provision reserves, DBS’s management overlay - the amount over and above what macroeconomic variable models (MEV) dictate - is $1.3 billion. Moreover its allowance coverage is at 109%, and at 203% after taking collateral into account. This leaves DBS with plenty of room for write-backs.


For more stories about where the money flows, click here for our Capital section


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