OCBC recorded a robust increase in net profit for the second quarter, driven by a record performance from lending income.
OCBC posted a net profit of S$1.48 billion ($1.07 billion) in the second quarter of 2022, according to its latest results, marking a robust 28 percent year-on-year increase.
This was driven primarily by a new high in net interest income of S$1.7 billion, up 16 percent, alongside lower allowances which fell 69 percent to S$72 million. Non-interest income climbed 6 percent higher to S$1.18 billion resulting in a 12 percent increase in total income to S$2.88 billion. Operating expenses also rose 10 percent to S$1.25 billion.
Wealth Management
Within OCBC’s wealth management business which covers the full range of client segments from premier to private banking, income grew 8 percent to S$1.03 billion, accounting for 36 percent of total group income for the quarter.
Despite positive net new money inflows, assets under management for wealth management dipped 1.8 percent to S$250 billion as a result of a drop in market valuations.
Record First Half
Overall, OCBC posted a 7 percent increase in net profit to S$2.84 billion in the first half – a new high – which was also attributed mainly to higher interest income and lower allowances.
«Our resilient performance for the first half of 2022 demonstrated the strength of our diversified franchise,» said OCBC chief executive Helen Wong in in a statement.
«Overall economic growth in our key markets is expected to remain positive this year but at a slower pace due to the heightened headwinds in the operating environment. Our diversified earnings base and strong capital, funding and liquidity positions will allow us to have the flexibility to navigate uncertainties and pursue our strategic growth objectives.»
