OCBC Q4 net profits spike 31 percent
(12 February 2018 - Singapore) Oversea-Chinese Banking Corporation (OCBC Bank) announced its four-quarter results, beating market forecasts with a 31 percent increase in net profit to S$1.03 billion (A$988 million).
For the last financial year, the group's net profit rose 19 percent to S$4.15 billion. Earnings per share for the year was 97.6 Singapore cents, up from 82.2 Singapore cents in the year-ago period.
The Singaporean bank said it saw sustained growth momentum across the group's three business pillars; being banking, wealth management and insurance.
OCBC added that the positive year-on-year performance was due to "higher operating profit from its insurance business, and strong performance in its investment portfolio as a result of favourable market conditions.”
The bank’s net interest income grew 14 percent to S$1.42 billion, contributed by an 11 percent rise in average interest earning assets, and a four basis points increase in net interest margin to 1.67 percent.
Non-interest income also rose 30 percent to S$1.21 billion year-on-year, while fees and commissions increased 17 percent, driven by higher income generated from wealth management and investment banking activities.
OCBC finalised the acquisition of National Australia Bank's private wealth business in Singapore and Hong Kong in November 2017, adding S$2.06 billion in loans, and S$2.42 billion in deposits to the group’s books.
Operating expenses increased by nine percent to S$1.07 billion in line with increased business volumes.
Customer loans of S$237 billion were up eight percent from S$220 billion last year, driven by growth across the corporate and consumer segments.
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