Record net interest income drove net profits at OCBC to a new all-time high in the first half of 2023.
OCBC’s net profit rose 38 percent to a new high of S$3.6 billion ($2.7 billion) for the first half of 2023, according to the bank’s financial results.
Total income increased 30 percent to a record S$6.8 billion, driven mainly by a 48 percent surge in net interest income to a new high of S$4.7 billion as average assets grew 6 percent and net interest margins climbed 65 basis points to 2.28 percent. Non-interest income increased 3 percent to S$2.1 billion. Operating expenses totalled S$2.6 billion, up 5 percent.
As a result, OCBC is raising its 2023 interim dividend by 43 percent to 40 cents, representing a payout ratio of 50 percent of the bank’s net profit in the first half this year.
«One Group» Approach
According to OCBC, it seeks to capture future growth opportunities using a groupwide approach moving forward.
«To solidify our One Group approach to capturing growth opportunities, we have recently launched a unified brand and logo across our core markets, as well as a new tagline: For now, and beyond,» said group CEO Helen Wong.
«We are committed to leveraging the combined strength of our strong network and enhancing our One Group capabilities to drive the medium-term growth initiatives that we have identified. At the same time, we will continue to be prudent in our risk and capital management given the uncertain global economic outlook.»
