SINGAPORE, Nov 8 — Singapore’s Oversea-Chinese Banking Corp said it was firmly placed to achieve its 2024 targets after posting today a 9 per cent rise in third-quarter net profit that beat market expectations.
South-east-Asia’s second-largest lender by assets after compatriot DBS said July-September net profit increased to S$1.97 billion (RM6.53 billion) from S$1.81 billion a year earlier, beating the mean estimate of nearly S$1.91 billion from analysts polled by LSEG.
OCBC said it was set to achieve full-year net interest margin, a key profitability gauge, at around the 2.20 per cent level, as well as low single-digit loan growth, full-year credit costs in the range of 20 basis points and return on equity above 14 per cent.
“Looking ahead, we will continue to proactively manage our balance sheet to prepare for a lower interest rate environment,” said Group CEO Helen Wong in a statement.
“We are closely monitoring potential volatilities arising from uncertain geopolitical conditions,” she said.
OCBC’s results rounded up a strong third-quarter earnings season by Singapore banks, which have benefited in recent years from higher global interest rates and strong inflows of wealth drawn by the city-state’s political stability.
Both local peers DBS and United Overseas Bank posted record quarterly earnings on the back of higher fee income and increased markets trading income.
OCBC’s improved performance was also driven by increased wealth management activity that lifted fee and trading income, in addition to higher insurance income and lower allowances.
Net interest margin was however lower at 2.18 per cent during the quarter from 2.27 per cent a year earlier, a trend similar with DBS and UOB too.
OCBC’s return on equity rose slightly to 14.1 per cent in the third quarter from 14 per cent in the same period of 2023. — Reuters
