OCBC the parent group of Singapore headquartered private bank The Bank of Singapore announced strong first quarter results from the city state this morning.
Oversea-Chinese Banking Corporation Limited (“OCBC Bank”) reported a net profit after tax of S$993 million for the first quarter of 2015 an increase of 11% from S$899 million a year ago and 26% higher than S$791 million the previous quarter.
OCBC’s private banking business continued to expand, with assets under management increasing 4% to US$51 billion (S$70 billion) as at 31 March 2015, up from US$49 billion (S$62 billion) the previous year.
The first quarter results included the consolidation of OCBC Wing Hang Bank, which became a subsidiary in the third quarter of 2014.
The results were underpinned by strong growth in the customer-related businesses across a more diversified earnings base, with all its key markets of Singapore, Malaysia, Indonesia and Greater China delivering positive profit growth.
Overall income from wealth management activities (comprising income from insurance, private banking, asset management, stockbroking and other wealth management products) grew from S$572 million a year ago to a new quarterly high of S$583 million.
As a share of the Group’s total income, wealth management activities contributed 28% as compared with 30% in 1Q14. As the group calibrates the integration of Wing Hang Bank there will be additional opportunities for Bank of Singapore to add to assets and revenue.
