OCBC records its highest-ever net profit of RM954m

KUALA LUMPUR: OCBC Bank (M) Bhd’s net profit rose 17 per cent to a record RM954 million in the financial year ended Dec 31 last year.

The increase was underpinned by a strong nine per cent growth in total income, said OCBC in a statement yesterday.

This was derived largely from higher gains on the disposal of financial investments along with net interest income sustained at the same level as in the financial year 2018 despite a 25 basispoint cut in the Overnight Policy Rate by Bank Negara Malaysia. .

After deducting proposed dividends, OCBC said it remained well capitalised with the Common Equity Tier 1 capital ratio of 14.38 per cent, Tier 1 capital ratio of 15.27 per cent and total capital ratio of 17.83 per cent, sufficient to withstand the challenges of the Covid-19 pandemic.

Chief executive officer Datuk Ong Eng Bin said he was pleased with the performance despite a challenging year.

“Fully cognisant of the implications of Covid-19, we continue to support our customers through the pandemic crisis via the combined strength of our conventional and Islamic banking franchise as well as in the areas of managing risks, maximising collaboration within business units and growing our wealth products platform.

“We continue to invest in digital capabilities to widen our offerings and improve customer experience to meet the surge in demand for online services.

“This disruption in customer banking behaviour will likely have a lasting impact as customers get used to and become more comfortable with a different way of banking from the comforts of their home and workplace.”

He said its Islamic banking arm, OCBC Al-Amin, would look to expand its wealth management business and build its financing book for corporates and small and medium enterprises.

14.38pc

OCBC Bank (M) Bhd’s Common Equity Tier 1 capital ratio