Singapore's OCBC reported a net profit after tax of S$902 million for the third quarter of 2015 (“3Q15”), lower as compared to S$1.23 billion a year ago (“3Q14”). Excluding a S$391 million one-off gain realised a year ago, the group’s core net profit, however, grew 7% year-on-year. This was driven by a 25% increase in earnings from the group’s banking operations, which more than offset a decline in insurance contributions.

The group’s nine months’ performance in wealth management, comprising income from insurance, private banking, asset management, stockbroking and other wealth management products, rose to S$1.74 billion, 4% above S$1.68 billion a year ago.

As a proportion of the Group’s total income, wealth management contributed 27%, as compared with 28% in 9M14. OCBC’s private banking business assets under management as at 30 September 2015 amounted to US$52 billion (S$74 billion), higher than US$51billion (S$65 billion) a year ago, driven by healthy inflow of net new money but partly offset by lower asset valuations.

Commenting on the Group’s performance, CEO Samuel Tsien said, “This quarter marks the first year since we acquired OCBC Wing Hang Bank. It is evident that the

OCBC Wing Hang Bank addition to our Greater China franchise has further strengthened and diversified the Group’s earnings. Our banking operations reported another quarter of strong growth, with core net profit increasing 25% year-on-year and 4% quarter-on-quarter. Our insurance operations, while recording strong underlying business growth as reflected by increased total weighted new sales and higher new business embedded value, was impacted by unrealised mark-to-market losses in its debt and equity investment portfolio as a result of the volatile financial markets. Against a more uncertain and challenging operating environment, we will continue to be focused and prudent as we grow our franchise across our key markets. We will maintain our strong capital position, remain disciplined in our cost management and set aside an adequate level of allowances.”