Higher net interest income at OCBC fuelled record-high net profits for the first quarter of 2023.
OCBC registered a net profit of S$1.88 billion ($1.42 billion) in the first quarter of 2023, according to the bank’s results, up 39 percent year-on-year.
Total income increased 27 percent to S$3.35 billion while operating expenses climbed 3 percent to S$1.24 billion.
Interest Income Growth
Similar to many industry peers, net interest income was the main driver of profit growth which increased 56 percent to S$2.34 billion.
Non-interest income fell 11 percent to S$1.01 billion due to lower wealth management fees which were partly offset by higher trading income and net realized gains from the sale of investment securities. Allowances totaled S$110 million, up from S$44 million in the first quarter of 2022, mainly for non-impaired assets.
Wealth Asset Boost
Assets under management at OCBC’s wealth management business increased S$12 billion to S$270 billion due to net new money inflows and positive market valuation.
«Looking ahead, we are watchful of tighter financial conditions which may slow global economic growth and elevate overall risks. We remain confident of the long-term prospects of our key markets in Asia,» said OCBC group chief executive Helen Wong.
