Strong performance from OCBC’s consumer and private banking segment helped bump up quarterly profits by 1 percent and offset all of the group’s other segments which posted negative year-on-year profit growth.
The Singaporean financial group posted second quarter profits of 1.22 billion Singapore dollars ($890 million), up 1 percent from last year’s ($880 million) and first half profits of $1.78 billion, up 6 percent year-on-year.
«While economic growth in our key markets is slowing, our healthy capital, funding and liquidity position will allow us to comfortably navigate the challenging operating environment and pursue our long-term growth strategy,» said OCBC CEO Samuel Tsien. «This also gives us the flexibility to capitalize on market expansion opportunities as they arise.»
One segment saves all
OCBC registered year-on-year operating profit drops across all business segments but closed the quarter higher due to a 20 percent surge in its consumer and private banking segment. The segment posted profits of $273 million due to higher net interest income and lower allowances. Its private wealth arm, Bank of Singapore also reached a new high in assets under management with $111 billion.
Despite a 33 percent drop in profits from its insurance segment, attributed to weaker performance from its subsidiary Greater Eastern Holdings, non-interest income still rose 1 percent driven by various business lines including wealth management fees which posted a five-quarter high and 8 percent increase. Net interest income climbed 10 percent year-on-year to reach $1.16 billion, attributed to increased customer loans and higher net interest margins (12 basis points).
