OCBC Q2 net income surges 16pc to record S$1.2b
SINGAPORE: Oversea-Chinese Banking Corp’s (OCBC) secondquarter profit rose more than analysts estimated as lending income increased and loan allowances fell.
Net income climbed 16 per cent to record S$1.21 billion (RM3.61 billion) in the three months ended June from a year earlier, said the bank yesterday.
That beat the S$1.12 billion average forecast in a Bloomberg survey of four analysts.
Southeast Asia’s secondlargest bank joins its two Singapore rivals in boosting lending income, thanks in part to rising interest rates in the region.
United Overseas Bank Ltd (UOB) also posted better-thanexpected profit, while DBS Group Holdings Ltd missed estimates after being hit by losses at its treasury and markets division.
OCBC chief executive officer Samuel Tsien joined his counterparts at UOB and DBS in sounding a cautious note about the impact of global trade tensions, while remaining positive about the long-term outlook for his bank.
“The operating environment is increasingly challenging and we are watchful of the severe implications to the global economy and financial markets from the escalating trade and political tensions.”
Higher margins and loan growth pushed up OCBC’s net interest income by eight per cent to S$1.45 billion.
Non-interest income increased two per cent, as growth in trading and wealth management was offset by a 97 per cent drop in net gains from the sale of investment securities.
“Nothing major to complain about overall as diversification in businesses is helping the bank," said Kevin Kwek, an analyst at Sanford C. Bernstein.