Singapore's second largest bank Oversea-Chinese Banking Corp., reported higher third-quarter profit. Its wealth management business made strong contributions.
Oversea-Chinese Banking Corporation (OCBC), eased past analysts forecasts with a 12 percent increase in net profit to $1.06 billion Singapore dollars (S$) from S$943 million at this time last year.
The «bedding in» of the Barclays Wealth and Investment Management (Barclays WIM) business in Singapore and Hong Kong, together with a focus on Greater China significantly lifted the assets at OCBC's private-banking business, Bank of Singapore.
Assets Surge
The Group’s wealth management income, comprising income from insurance, private banking, asset management, stockbroking and other wealth management products, of S$2.25 billion grew 38 percent from S$1.63 billion a year ago.
As a proportion of the Group’s total income, wealth management contributed 32 percent. Operating expenses rose 6 percent to S$2.97 billion, largely from higher staff-related costs following the acquisition of Barclays WIM.
Assets under management at OCBC’s private banking business rose to S$129 billion as at 30 September 2017, a 53 percent increase from S$85 billion a year ago, partially contributed by the acquisition of Barclays WIM.
Greater China Wealth Push
In June this year Bank of Singapore, announced management changes reflecting its target of capturing a larger portion of the lucrative Greater China wealth market.
«Our strong third quarter earnings demonstrated the quality and continued momentum in each of our banking, wealth management and insurance franchises,» said Samuel Tsien, OCBC Chief executive.
