Singapore-based OCBC registered record net profit in the first six months of the year with new highs in multiple areas including total income and assets under management within its wealth business. 

OCBC’s net profit rose 9 percent year-on-year to a record S$3.9 billion ($2.9 billion) in the first half of 2024, according to the bank’s financial results. 

This was driven by multiple new highs in its top line including a total income of S$7.3 billion (up 7 percent) and net interest income of S$4.9 billion (up 3 percent). Non-interest income grew 15 percent to S$2.4 billion which also included a new high in customer flow treasury income.

Operating expenses increased 6 percent to S$2.7 billion, mainly due to higher staff costs, IT-related expenses as well as other operational expenses. The cost/income ratio improved from 37.8 percent a year ago to 37.5 percent. Total allowances declined 14 percent to S$313 million.

Record Wealth Business

The wealth management business – insurance, private banking, premier private client, premier banking, asset management and stockbroking – also set new records. Income grew 14 percent to a record S$2.5 billion while assets under management also hit a new high of S$279 billion compared to S$274 billion at the end of June 2023.

OCBC’s board declared an interim dividend of S$0.44, marking a 10 percent year-on-year increase. This represents a payout ratio of 50 percent of the group’s first-half profit.

New Acquisitions

In terms of inorganic growth, the bank highlighted recent examples including an increased stake in Singapore-based insurer Great Eastern from 4.88 percent to 93.32 percent. It also completed its acquisition of PT Bank Commonwealth Indonesia in May 2024. 

«As we look ahead, we are alert to the heightened level of geopolitical uncertainties,» commented OCBC group CEO Helen Wong. «With our strong capital position, diversified earnings base and prudent approach towards risk management, we are well positioned to navigate the challenging macroeconomic landscape. We remain confident in the continued strength of our franchise to deliver enduring value to our stakeholders.»