OCBC Malaysia reports 17 pct net profit increase to RM954 million
KUCHING: OCBC Bank (Malaysia) Berhad (OCBC Bank) and its subsidiaries (collectively OCBC Malaysia) yesterday reported a 17 per cent rise in net profit to RM954 million for the financial year ended December 31, 2019, the highest net profit it has ever recorded.
Profit before tax rose 12 per cent to RM1.23 billion.
The increase was underpinned by a strong nine per cent growth in total income, derived largely from higher gains on disposal of financial investments along with net interest income sustained at the same level as in the financial year 2018 despite a 25bp cut in the Overnight Policy Rate (OPR) and, correspondingly, the bank’s base and base lending/financing rates in 2019.
After deducting proposed dividends, OCBC Malaysia remained well capitalised with Common Equity Tier 1 capital ratio of 14.380 per cent, Tier 1 capital ratio of 15.266 per cent and total capital ratio of 17.835 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 respectable performance despite a challenging year.
“Moving into 2020 and 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.
“Our corporate and commercial banking efforts will continue to focus on supporting our customers’ local and regional business growth by matching their business expansion requirements with the OCBC Group’s strong regional network. Alongside this, we will help those businesses facing financial difficulties, whose revenue and cashflows were impacted by Covid-19 and the movement control order.
“OCBC Al-Amin will look to expand its wealth management business as well as build its financing book for corporates and SMEs, paying particular attention to Value Based Intermediation, especially in the areas of sustainable financing as part of our long-term growth strategy.
“For a seamless learning experience, our commitment towards staff learning remains strong, revolving around the ‘We See You’ platform. We will continue to break new ground in enhancing our virtual classroom experience by assisting both our internal trainers as well as learners to share, teach and develop using the numerous available online platforms.
“On the CSR front, we will ride on the momentum created by our various division and branch level efforts in the last few years to fulfil the social needs of the communities where we operate, maintaining our position as a bank that cares.
“Our initiatives will continue to provide an environment for every employee to volunteer in one way or another,” he said.