OCBC shares up as much as 3.1% after Q1 profit beats estimates

[SINGAPORE] Shares of OCBC Bank rose as much as 3.1 per cent on Friday (May 8) after the bank reported better-than-expected first quarter profits.

The counter climbed as high as S$22.56 within seconds of market open, adding S$0.68, with more than 1.7 million shares changing hands.

It was one of the few blue chips to advance on Friday morning amid a sea of red which dragged the Straits Times Index down 0.3 per cent.

But the bank’s rally was short-lived. In just an hour, it had given up most of its gains and stood 0.8 per cent up at S$22.06. Its peers DBS and UOB fared worse and were in negative territory.

OCBC’s net profit for the first quarter rose 5 per cent, driven by strong growth in wealth management. Net profit for the three months ended Mar 31, stood at S$1.97 billion, versus S$1.88 billion a year earlier. This was above the S$1.88 billion consensus estimate in a Bloomberg survey of five analysts.

Net interest income fell 5 per cent to S$2.2 billion amid a lower interest rate environment, while net interest margin narrowed by 28 basis points to 1.76 per cent.