OCBC joins its Singapore rivals in capitalizing on the post-Covid rebound and rising rates to register a new high in quarterly profits.
OCBC posted a record net profit of S$1.6 billion ($1.13 billion) in the third quarter, according to a release of its financial results, up 31 percent year-on-year.
This was driven in large part by a 44 percent surge in net interest income to S$2.1 billion due to a 54 basis point increase in net interest margin. Non-interest income fell 4 percent as higher trading and insurance-linked income was offset by lower fees and commissions.
Total income rose 23 percent to S$3.15 billion while operating expenses climbed 7 percent to S$1.27 billion.
Wealth Management
OCBC’s wealth management business – which includes insurance, private banking, premier private client, premier banking, asset management and stockbroking, – saw income grow 21 percent to S$1.12 billion. This accounts for 35 percent of the overall group income.
The wealth unit also recorded positive net new money with total assets under management down 1 percent to S$250 billion.
In the first nine months of 2022, OCBC registered a net profit of S$4.44 billion, up 14 percent year-on-year.
«Looking ahead, the global economic outlook is expected to be increasingly challenging,» said OCBC chief executive Helen Wong. «Backed by our strong balance sheet, we are well-positioned to support our customers and capture opportunities as they arise.»
