OCBC Q3 profit rises 21.4% to S$1.8 billion
OCBC on Friday (Nov 10) reported a 21.4 per cent rise in net profit for the third quarter, supported by record growth in net interest income and higher non-interest income.
The bank posted a net profit of S$1.8 billion for the third quarter ended Sep 30, up from S$1.5 billion last year. The earnings were in line with a consensus forecast in a Bloomberg survey of four analysts.
Total income rose 13.1 per cent year on year to S$3.4 billion from S$3 billion.
Net interest income for the quarter rose 17 per cent to S$2.5 billion from S$2.1 billion. The bank said this was supported by asset growth and an expansion in net interest margin.
Non-interest income grew 4.4 per cent to S$973 million from S$932 million, as a rise in fee income and better investment performance offset lower insurance income.
Net fee income was up 2 per cent to S$461 million from the same period last year – the highest level in the past four quarters, OCBC said. The group recorded higher wealth management fees as customer activity rose, along with an increase in credit card fees.
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Net trading income held steady at S$216 million, while insurance profit fell 12 per cent year on year to S$220 million from a rise in medical claims, but this was partly offset by better investment performance.
The bank’s non-performing loans ratio stood at 1 per cent, down from 1.2 per cent the same period last year.
Annualised earnings per share stood at S$1.58 for the quarter, up from S$1.30 in the year-ago period.
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Total allowances stood at S$184 million, an increase from S$154 million on higher allowances for impaired assets. Credit costs for the quarter were 17 basis points on an annualised basis.
Operating expenses grew 4.9 per cent year on year to S$1.34 billion from S$1.28 billion as the bank continued to invest in its franchise across people and technology. Its cost-to-income ratio fell to 39.1 per cent, from 42.2 per cent.
Shares of OCBC closed flat at S$13.06 on Thursday.
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