OCBC net profit soars by 86% to $2.6b in first half

The net profit growth was driven by a robust banking and insurance performance.

Oversea-Chinese Banking Corporation (OCBC) reported a net profit of $2.66b for the first half of the year, an 86% growth from last year’s $1.4b.

This was driven by a 29% increase in non-interest income to $2.58b and substantially lower allowances.

Net profit growth was driven by robust banking and insurance performance, whilst wealth management income grew strongly and private banking assets under management continued to expand. Whilst net interest margin remained relatively stable amid a low rate environment, fee- and investment-related income grew in tandem with renewed consumer and business confidence,” said OCBC CEO Helen Wong in a bourse disclosure.

Net interest income, on the other hand, was 7% lower at $2.9b due to an 11 basis point contraction in net interest margin to 1.57%, as asset yields declined faster than the drop in funding costs in the low-interest-rate environment.

The Bank of Ningbo drove the Group’s share of results of associates to expand by 29% to $422m.

Operating expenses increased by 3% to $2.29b, whilst cost-to-income ratio improved to 41.7% from 43.3%.

Total allowances were at $393m, lower than last year’s $1.4b.

Return on equity rose to 10.6% from 6.1% the previous year, and earnings per share increased to $1.19 from $0.64.

Follow the link for more news on

Join Asian Banking & Finance community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

Australian banks' credit risk rises amidst high debt, economic uncertainty
National Australia Bank reported an 8.1% decline in cash earnings.Australian banks face heightened risk of rising credit losses as high household debt levels, elevated interest rates, and global economic uncertainties continue, according to S&P Global Ratings.
Retail Banking
Visa launches new products to boost flexibility, security in APAC
It also partnered with QR payment providers across the region for cross-border payments.Visa has introduced several new products and services aimed at enhancing payment flexibility and security in Asia Pacific.
Cards & Payments