OCBC’s posted a robust profit increase in the third quarter, which was fueled by a significant reduction in allowances.
OCBC registered S$1.22 billion ($904 million) in net profit for the third quarter, according to its latest results, marking a 19 percent year-on-year increase.
A significant reduction of allowances by 54 percent to S$163 million due to an improved credit outlook was a major contributor to profit growth.
Total income was flat at 1 percent growth to S$2.56 billion while operating expenses and associates grew 8 percent and 33 percent, respectively. As a result, pre-allowance operating profit was flat, decreasing 1 percent to S$1.576 billion.
Wealth Management
Overall wealth management income – including insurance, premier and private banking, asset management and stockbroking – was down 7.4 percent to S$897 million.
OCBC’s private wealth arm, Bank of Singapore, saw assets under management increase 6 percent to S$167 billion ($123 billion) driven by inflows of net new money and positive market valuations.
«Our third quarter results were resilient, despite the challenging conditions associated with the Delta virus variant,» said OCBC chief executive Helen Wong. «We remain positive on the long-term outlook but are watchful of the near-term headwinds from the pandemic.»
