OCBC’s posted a record in net profits after broad-based growth across interest and non-interest income growth drove the bottom line 8 percent higher.
Annual net profits at OCBC reached S$4.87 billion ($3.48 billion) after the bank ended the year on a strong note with a 34 percent increase to fourth quarter net profits.
Net interest income climbed 7 percent to reach a new high of S$6.33 billion driven by both asset growth and an increase in net interest margin, mainly in Singapore and Greater China.
Non-interest income increased 19 percent to S$4.54 billion driven by growth across the board. Net income to rose 5 percent to S$2.12 billion led by higher wealth management and credit card fees while net trading income nearly doubled to S$977 million primarily due to increases in client flow income and mark-to-market gains in Great Eastern Holdings’ investment portfolios. Investment securities sales also grew ten-fold to S$171 million.
Consecutive Record Earnings
In addition to another year of record earnings, according to OCBC group CEO Samuel Tsien, the bank had also met its loan targets and its ESG (environmental, social, governance) ambitions, especially within its green and renewables financing portfolio, are on track to meet its 2022 target.
«OCBC achieved a strong performance in 2019 which marked another consecutive year of record earnings,» Tsien said. «Looking ahead, the global economic outlook is expected to be weaker than originally expected. We are watchful of the impact to our business and customers from the continuing trade tensions, heightened geopolitical risks and the COVID-19 outbreak, and will extend support to customers to help them overcome the market challenges.»
