OCBC expects stronger net interest margin but stays watchful of slowing global growth

OCBC will likely deliver a stronger net interest margin (NIM) for 2023 than previously expected, but will stay prudent as the global growth momentum is expected to slow heading into 2024, said group chief executive Helen Wong.

Wong earlier guided NIM to be around 2.2 per cent. She now expects NIM will be above 2.2 per cent for 2023, and possibly be stable around this quarter’s NIM of 2.26 per cent.

The bank continued to raise its general allowances, however, as it takes on a prudent approach to guard against slowing global growth ahead, Wong said at the bank’s earnings briefing on Friday (Aug 4).