DBS, largest bank of Southeast Asia has announced a loss worth S$300 million because of the impairment charges in the second quarter. The bank had to face the impairment charges of S$1 billion on the Hong Kong unit.

According to the bank, strong deposit market in Hong Kong led to the high funding costs in the last quarter. It is expected that the intensity in the Hong Kong market will continue to be there, however, it will not largely affect the working of the bank.

Piyush Gupta, CEO for DBS said that the regulatory capital of the bank will not be affected by this intensification.

The bank has reported increased earnings in the last quarter. In the last quarter, the profit of the bank had jumped by 30% to $S718 million.

On the other hand, the interest income of the bank declined by 4% to S$1.067 billion, whereas, the non-interest income of the bank increased by 10%.

Market analysts have expected the loan value to jump in the second half resulting in the better net interest income of the bank.

DBS has said that it will contribute to the economic growth of Asia. The payment remains to be 14 cents per share in the next quarter, as well.