OCBC Q4 earnings up 8% at $715m

Singapore

STRONG growth in net interest income and fee income helped OCBC Bank record a net profit of $715 million for its fourth quarter ended Dec 31, 2013, despite lower life insurance and trading income. This was 8 per cent higher than the $663 million a year ago.

OCBC CEO Samuel Tsien said that the bank's net interest margin (NIM), a key measure of lending profitability, should remain stable at about "1.6 plus per cent" in the year ahead. The bank is also focusing on higher-growth territories outside of its Singapore base like Indonesia, Malaysia, China and Hong Kong. It is raising US dollar deposits so it can lend more in US dollars, notably to China corporates.

Costs are expected to rise percentage wise in the "single digits" for the year ahead due to technology investments and compliance requirements. Loan growth is targeted to slow to the "low teens" from 18 per cent y…