OCBC Q1 profit rises 5% to S$1.98 billion
This beats the S$1.85 billion consensus forecast in a Bloomberg survey
OCBC’s net profit for the first quarter ended Mar 31, 2024 rose 5 per cent to S$1.98 billion, buoyed by strong growth in operating profit.
This was up from its earnings of S$1.88 billion from the year-ago period, and beat the S$1.85 billion consensus forecast in a Bloomberg survey of three analysts. It is the last among Singapore’s three big banks to report its quarterly results this season.
Annualised earning per share stood at S$1.76 for the quarter, up 5 per cent from S$1.68 the year before.
Total income for the quarter rose 8 per cent year on year to S$3.63 billion.
Net interest income rose 4 per cent to S$2.44 billion, driven by a 5 per cent growth in average assets, which more than compensated for a three basis point decline in net interest margin, as rising funding costs offset the higher asset yields.
Non-interest income was up 17 per cent to S$1.2 billion due to an improvement in fee, trading and insurance income.
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The bank’s non-performing loans ratio at the end of the quarter was 1 per cent, down 0.1 percentage point from the previous year.
Total allowances were S$169 million, higher than the S$110 million the previous year, mainly due to increased allowances for impaired assets.
Return on equity on an annualised basis stood at 14.7 per cent, unchanged year on year and up 2.3 percentage points on the quarter.
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Commenting on the results announced on Friday (May 10), group chief executive officer Helen Wong highlighted a record net profit which lifted return on equity, and a healthy balance sheet position to tackle macro uncertainties.
“Our key markets in Asia are expected to be resilient, benefiting from increasing capital flows and supply-chain diversification,” she added.
OCBC shares ended 1.2 per cent, or S$0.16 higher, at S$13.91 on Thursday.
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