Singapore-based Oversea-Chinese Banking Corp (OCBC) has announced a substantial increase in profit for the third quarter, benefiting from a favorable interest rate environment.
Impressive Growth in Net Profit
OCBC reported a remarkable 21% rise in net profit, reaching 1.81 billion Singapore dollars (US$1.33 billion), compared to the previous year.
Expanding Total Income and Net Interest Income
Total income also experienced notable growth, expanding by 13% to S$3.43 billion. Net interest income saw a significant increase of 17%, reaching S$2.46 billion.
Non-Net Interest Income Performance
OCBC’s non-net interest income amounted to S$973 million, exceeding the previous year’s figure of S$932.0 million.
The bank witnessed an increase in allowances for loans and other assets during the quarter, totaling S$184 million, compared to S$154 million previously. This rise was primarily due to higher provisioning for impaired loans.
OCBC remains cautious about the macroeconomic outlook and expects uncertainties arising from inflationary risks, tightening monetary policies, and heightened geopolitical risks.
OCBC Reports Strong Third Quarter Profit
Overview
Oversea-Chinese Banking Corp. (OCBC) announced robust financial results for the third quarter, propelled by a favorable interest-rate environment. The Singapore bank’s net profit surged 21% year-on-year to 1.81 billion Singapore dollars (US$1.33 billion). Total income expanded by 13% to S$3.43 billion, with net interest income rising by 17% to S$2.46 billion. Non-net interest income also saw growth, reaching S$973 million compared to S$932.0 million in the previous year.
Loan Allowances and Asset Provisioning
During the quarter, OCBC allocated S$184 million for allowances toward loans and other assets, marking an increase from S$154 million. The larger provision was primarily driven by higher provisioning for impaired loans.
Macroeconomic Outlook
The bank highlighted that the macroeconomic outlook is expected to be clouded by growing uncertainties arising from inflationary risks, tightening monetary policies, and heightened geopolitical risks.
