More profit up ahead for Singapore's largest banks

OCBC's net income jumped the most.

The aggregate net profit attributable to parents of the three largest Singapore banks — United Overseas Bank Ltd., DBS Group Holdings Ltd. and Oversea-Chinese Banking Corp. Ltd. — grew by 18.9% year over year in the quarter ended June 30.

According to a research note from SNL Financial, OCBC saw the highest jump in net income, with its metric growing 54% to S$921 million in the second quarter from S$597 million in the prior-year period.

The company said the record quarterly performance was underpinned by higher net interest income, strong noninterest income growth, mark-to-market gains in the insurance business and continued cost discipline.

The company's net interest income rose 17.2% to S$1.13 billion.

Apart from the income growth, OCBC also stands out in the group because of its asset quality.

The company's nonperforming loans ratio improved by 6 basis points year over year to 0.66%, the lowest ratio among all three banks.