OCBC looks to balance net interest income growth with NIM impact ahead of interest rate cuts
The bank’s Q2 net profit rises 14% to S$1.94 billion; the earnings are the second-strongest on record
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AHEAD of cuts to US interest rates, OCBC has noted the need to sustain growth in its net interest income (NII) while blunting the impact of lower net interest margins (NIMs), its group chief executive Helen Wong has said.
At a briefing for OCBC’s second-quarter results on Friday (Aug 2), she said that the bank is looking at ways – including deploying liquidity into lower-yielding assets – to protect both its NII and NIM to prepare for the expected rate cuts.
The bank expects two cuts will take place this year, which are expected to hit its asset yields and funding costs.
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