OCBC Has 'Robust' Second Quarter
Oversea-Chinese Banking Corporation, the Singapore-based financial services group, reported a robust second quarter. It signals a more challenging environment ahead.
Oversea-Chinese Banking Corporation (OCBC) increased net income to S$1.21 billion in the second quarter, up by 16 percent from the same period in 2017, the company said in a statement on Monday.
Growth was broad-based, driven by the group's banking, wealth management, and insurance businesses. The group declared an interim dividend of 20 cents per share, 2 cents higher than a year ago.
Loans Shone Brightest
The lender's net interest income touched a new high of S$1.45 billion, driven by strong loan growth and a higher net interest margin. This is 8 percent up from a year ago due to broad-based growth across most industries and geographical segments.
«Our record quarterly performance reflects the resilience and strong foundation for growth of our diversified banking, wealth management and insurance franchise,» said Samuel Tsien, CEO of OCBC. «Second-quarter net interest income rose from a year ago, driven by robust loan growth and improved asset yields in both the Singapore and Malaysia markets.»
Non-interest income in the quarter grew at a low single-digit rate, reaching S$1.02 billion. This is because the 37 percent growth in net trading income was mostly offset by lower net realized gains from the sale of investment securities.
Trade Tensions
Tsien signalled a more challenging environment ahead due to uncertainties caused by tensions between the U.S. and its trading partners.
«The operating environment is increasingly challenging and we are watchful of the severe implications to the global economy and financial markets from the escalating trade and political tensions,» added Tsien.
