Singapore-based OCBC posted higher profits in the third quarter, driven by improvements across the board including lending and wealth management fee income.
Net profit at Oversea-Chinese Banking Corporation (OCBC) increased 21 percent year-on-year to S$1.8 billion ($1.3 billion) for the third quarter of 2023, according to the bank’s financial results.
Total income rose 13 percent to S$3.4 billion while operating expenses were up 5 percent to S$1.3 billion due to continued investments in staff and technology. As a result, the cost-income ratio improved from 42.2 percent to 39.1 percent this quarter.
Income Breakdown
Increased income was driven by both higher interest and non-interest income.
Net interest income rose 17 percent to nearly S$2.5 billion, supported by asset growth of 6 percent and a 21 basis point expansion of net interest margin to 2.27 percent. Non-interest income increased 4 percent to S$973 million, driven by a 2 percent rise in fee income to S$461 million from higher wealth and credit card fees, offset by a 12 percent decrease in insurance profits.
Within the wealth management business, assets under management grew 8 percent to S$270 billion, mainly driven by positive inflows of net new money.
Record Profit
In the first nine months of 2023, OCBC's total income and net profit reached S$10.2 billion and S$5.4 billion, respectively – both record highs.
«We are pleased to achieve a solid set of results for the nine months of 2023, backed by strong operating performance across the group’s diversified franchise,» said OCBC CEO Helen Wong. «Looking ahead, macroeconomic conditions are expected to be clouded by growing uncertainties from inflationary risks, tightening monetary policies and heightened geopolitical risks.»
