Oversea-Chinese Banking Corporation Limited (“OCBC Bank”) reported a net profit after tax of S$1.05 billion for the second quarter of 2015 (“2Q15”), which was 14% higher than S$921 million a year ago (“2Q14”).
The Group’s 1H15 wealth management income, comprising income from insurance, private banking, asset management, stockbroking and other wealth management products, rose to a new high of S$1.28 billion, 11% above S$1.15 billion a year ago. As a share of the Group’s total income, wealth management contributed 29%, a level comparable with that of 1H14.
OCBC’s private banking business continued to expand, with assets under management as at 30 June 2015 growing 6% to US$54 billion (S$73 billion) from US$51 billion (S$64 billion) a year ago.
The robust second quarter performance was driven by new highs in both net interest income and noninterest income. The results further demonstrated the diversity of the Group’s earnings base, as reflected by increased pre-tax contributions from key overseas markets notably Greater China and Indonesia, which grew 102% and 21% respectively, from a year ago.
Operating expenses for the quarter rose 21% to S$918 million from S$760 million a year ago, reflecting the consolidation of OCBC Wing Hang. The Group’s cost-to-income ratio was maintained at 41.3%. Excluding OCBC Wing Hang, operating expenses increased 7%, mainly from staff-related costs.
Commenting on the Group’s performance and outlook, CEO Samuel Tsien said, “Our first half performance was driven by successive quarters of record earnings. Our results demonstrated the strength of our banking and wealth management franchise, as well as higher insurance contributions from portfolio investment gains. The results also reflected the success of our strategy of diversifying our income base, as we believe a wider geographic and business presence will better position us to benefit from Asia’s continued long-term growth potential.”
