Record high for Singapore’s OCBC
(12 February 2004 – Singapore) Overseas Chinese Banking Corporation (OCBC) has bucked tough trading conditions to post a full year net profit increase of 43 percent.
The Singaporean bank recorded a S$ 954 million (A$727.5 million) net profit for the year ended December 31, 2004 – a "record high" based on a significant drop in provisions, the bank said.
Operating profit before provisions and amortisation dropped by two percent to S$1,338 million, which the bank pinned on a five percent decline net interest income brought about by increased competition driving down margins.
Customer loans grew by five percent to S$52.6 billion at the end of 2003 while housing loans increased by 25 percent to S$15.4 billion.
The bank delivered strong retail sales in treasury and structured products but recorded a loss in securities and derivatives compared with the previous year.
OCBC chief operating officer David Conner said 2003 had been a difficult year for most companies in Singapore and that the bank had performed well in a difficult business environment.
"Even excluding the non-core gains, our net profit increased by 24 percent over 2002. The large reduction in provisions is an important achievement as it reflects an improved credit process and stronger asset quality. We are also encouraged by the growth in net interest income and fee income in the second half, and by the market share gains we have made in consumer loans," Conner said.
He said the global economic outlook had brightened considerably over the past few months, which gave the bank a "sense of optimism for 2004".
"However, we must also be prepared for any adverse changes in the external environment. OCBC is in a strong position to capitalise on the growth opportunities ahead," Conner said.
Operating profit before provisions and amortisation dropped by two percent to S$1,338 million, which the bank pinned on a five percent decline net interest income brought about by increased competition driving down margins.
Customer loans grew by five percent to S$52.6 billion at the end of 2003 while housing loans increased by 25 percent to S$15.4 billion.
The bank delivered strong retail sales in treasury and structured products but recorded a loss in securities and derivatives compared with the previous year.
OCBC chief operating officer David Conner said 2003 had been a difficult year for most companies in Singapore and that the bank had performed well in a difficult business environment.
"Even excluding the non-core gains, our net profit increased by 24 percent over 2002. The large reduction in provisions is an important achievement as it reflects an improved credit process and stronger asset quality. We are also encouraged by the growth in net interest income and fee income in the second half, and by the market share gains we have made in consumer loans," Conner said.
He said the global economic outlook had brightened considerably over the past few months, which gave the bank a "sense of optimism for 2004".
"However, we must also be prepared for any adverse changes in the external environment. OCBC is in a strong position to capitalise on the growth opportunities ahead," Conner said.
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