Reporting its second quarter results Singapore's Oversea-Chinese Banking Corporation beat analysts expectations in part due to its recent wealth activities.
The Group’s banking, wealth management and insurance operations delivered a strong year-on-year performance, driven by growth in net interest income, fees and commissions, net trading income and profit from life assurance.
Overall wealth management income, comprising income from insurance, private banking, asset management, stockbroking and other wealth management products, grew 51 percent to $1.51 billion, Singapore dollars (S$) from S$1.00 billion a year ago.
Digital Influence
As a proportion of the Group’s total income, wealth management contributed 33 percent, higher as compared with 24 percent in the first half of 2016.
Singapore's second largest bank has also been working on cost trimming efficiencies by implementing a digital strategy across much of its business.
Private Banking Growth
Oversea-Chinese Banking Corporation's (OCBC) private banking business continued to achieve strong growth, as reflected by an increase in assets under management to S$123 billion as at 30 June 2017, up 47 percent from the previous year, partly contributed by the acquisition of Barclays Wealth and Investment Management.
Despite losing several high profile Barclays wealth managers to rivals prior to the completion of the deal, Bank of Singapore, OCBC Bank’s wholly-owned subsidiary kept the core of the U.K. banks business in its Hong Kong and Singapore wealth hubs.
Aiming at Prudence
«Strong business momentum was achieved across all three business pillars – banking, wealth management and insurance. Income growth was broad-based, lending activities were up,» said Samuel Tsien CEO OCBC Bank.
With overall economic growth in the region expected to be moderate the chief executive urged some caution saying «We will pursue prudent business growth, focusing on our key markets and core business lines.»
