A rise in net interest income led Singapore-based OCBC to post a record net profit for 2023.
OCBC's net profit rose 27 percent to S$7.02 billion ($5.22 billion) in 2023, according to the bank’s annual report. This was the first time ever that the Singapore lender saw its annual profit cross the S$7 billion mark.
Total income increased 20 percent to a new high of S$13.5 billion. This was primarily driven by a 25 percent increase in net interest income with net interest margin rising 37 basis points to 2.28 percent. Non-interest income also rose 7 percent to S$3.86 billion, though fees and commissions fell 3 percent as subdued investment sentiments caused lower wealth-related fees.
Higher Expenses
Operating expenses increased 8 percent to S$5.22 billion, largely due to higher costs associated with staff, IT and business growth. The rise in staff costs was driven by annual salary adjustments, headcount growth and one-off support for junior employees, as per the recommendation of Singapore’s National Wages Council.
OCBC’s board recommended an increase in the final dividend to 42 cents per share with the dividend for 2023 totalling 82 cents per share, up 21 percent year-on-year.
