OCBC Q2 profit rises 22% to S$2.22 billion, beating expectations
Earnings surpass S$1.91 billion consensus forecast; bank declares interim dividend of S$0.47 per share
[SINGAPORE] OCBC’s net profit for its second quarter rose 22 per cent, as a surge in non-interest income led by wealth management more than offset a fall in net interest income amid softer rates.
Net profit for the three months ended Jun 30 stood at S$2.22 billion, up from S$1.82 billion in the year-ago period, it said on Friday (Aug 7).
The earnings beat the S$1.91 billion consensus forecast in a Bloomberg survey of five analysts.
Diluted H1 earnings per share were S$0.92, up from S$0.81 before. OCBC declared an interim dividend of S$0.47 a share, up from S$0.41 a share the year before.
Net interest income fell 1 per cent to S$2.26 billion, as net interest margin declined 22 basis points to 1.7 per cent, from 1.92 per cent in the previous year.
Non-interest income was up 51 per cent at S$1.91 billion, driven by broad-based growth across fee, trading and insurance income, which rose 28 per cent, 85 per cent and 68 per cent, respectively.
The non-performing loan ratio was unchanged at 0.9 per cent.
Group CEO Tan Teck Long said: “Looking ahead, global conditions remain uncertain amid geopolitical tensions and elevated inflation risks.
“Much of the near-term outlook will depend on the easing of Asia’s energy crunch brought about by the war in the Middle East. Meanwhile, artificial intelligence and related technology sectors continue to register strong growth.”
OCBC closed up 2.4 per cent or S$0.70 at S$29.33 on Thursday.
