OCBC's Q2 profit up 22% to S$1.08b

OCBC on Thursday posted a 22 per cent increase in its second-quarter net profit to S$1.08 billion, from S$885 million a year ago.

The group attributed this to strong year-on-year performance by its banking, wealth management and insurance operations - driven by growth in net interest income, fees and commissions, net trading income and profit from life assurance.

Net interest income rose 7 per cent to S$1.35 billion in the second quarter ended June 30, 2017, from S$1.26 billion a year ago, due mainly to strong lending growth across the group's corporate and consumer businesses, said OCBC.

Customer loans grew 11 per cent from the previous year to S$229 billion, led by broad-based growth across most industry segments and key markets.

Net interest margin (NIM) for the quarter was 1.65 per cent, marginally lower than last year's 1.68 per cent, primarily on a fall in loan yields, which was partly offset by higher gapping income and a drop in funding costs.

An interim dividend of 18 Singapore cents per share has been declared for the first half of 2017, unchanged from the 18-cent interim dividend declared a year ago.