SINGAPORE — Singapore’s largest bank, DBS Group HoldingsThe company posted earnings for the third quarter that exceeded analysts’ expectations as its chief executive highlighted improving business conditions over the coming months.  

The bank on Friday reported a net profit of 1.7 billion Singapore dollars ($1.26 billion) for the July to September quarter — 31% higher than a year ago and exceeding an average forecast of 1.57 billion Singapore dollars on Refinitiv.   

DBS shares traded 0.3% higher in the early hours of Friday trade. Stock has increased 28.6% since Thursday’s close. That is more than the benchmark Straits Times IndexIn the same period, he saw 13.2% growth.

Piyush Gupta, CEO of DBS said that earnings will benefit from a gradual normalization in interest rates over the next quarters in a statement.

The bank also reported other notable results from its third-quarter earnings.

• The bank wrote back 70 million Singapore dollars in allowances — previously set aside for potential loan losses — as economic recovery continues.
• The net interest margin was two basis points lower in the current quarter, at 1.43%, due to lower short term interest rates.
• A quarterly dividend was declared by the DBS board at 33 Singapore cents per share.  

DBS released its financial results, rounding out the reporting season of Singapore’s most prestigious banks.

Earlier this week, the other two banks — Oversea-Chinese Banking Corp and United Overseas Bank — also reported third-quarter earnings that beat expectations.  

OCBCComparing to a year ago,’s net profit increased 19% ($904.5million) while UOBThe net profit rose 57% to 1.05 Billion Singapore Dollars in that same period.