Singapore's DBS has recorded a 13 per cent rise in first half profits, along with record-breaking income figures for the period.

DBS Group, the Singapore-based bank, posted a 13 per cent rise in net profit for the first half of 2012 from a year ago to S$1.74 billion ($1.4 billion), as its net income for the half-year crossed the S$4 billion mark for the first time.

The result was driven by improved product and distribution capabilities, a strong balance sheet and sustained business growth, the firm said, leading it to record an 11.9 per cent increase in return on equity, from 11.4 per cent in the year-earlier period. 

Total income rose 9 per cent to S$4.1 billion, led by treasury income which grew 12 per cent. Institutional banking was up 12 per cent to S$2.21 billion. Consumer banking and wealth management income also delivered strong gains, up 9 per cent to S$1.17 billion, driven by the wealth management segment. 

DBS Group attributes its growth to its organic growth initiatives. The bank is awaiting regulatory approval for its $7.2 billion acquisition offer for Bank Danamon in Indonesia. The deal was first announced in April 2012 and has been uncertain since the Indonesian government expressed plans to limit single bank ownership to 40 per cent. It is believed that exemptions will be allowed for this deal. 

"Underscored by our confidence in Asia and in particular Indonesia, we are committed to pursuing the Danamon transaction and will be fully guided by Bank Indonesia at every step of the way," said Peter Sheah chairman of DBS.

DBS has over 200 branches across Asia.