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OCBC Q4 profit up 11%, misses forecasts on Wing Hang-linked costs
[SINGAPORE] Oversea-Chinese Banking Corp, Singapore's second-biggest lender, posted an 11 per cent rise in quarterly profit on back of strong loan growth and fee income, but missed analysts estimates due to higher costs linked to its newly acquired Hong Kong unit.
OCBC said operating expenses rose 29 per cent from a year earlier, while provisions for soured loans and other assets doubled, in part due to the consolidation of Wing Hang Bank.
OCBC said net profit for the October-December period came in at S$791 million, below an average forecast of S$862 million from six analysts polled by Reuters. It reported a net profit of S$715 million a year earlier.
The result came after DBS Group Holdings, Singapore's biggest bank, on Tuesday posted a 4.5 per cent rise in core fourth-quarter net profit, but missed analysts' estimates due to higher bad debt provisions linked to China.