SINGAPORE: Oversea-Chinese Banking Corp (OCBC) posted a 16 per cent increase in its second-quarter net profit to S$1.21 billion, smashing analysts' estimates.
Analysts polled by Bloomberg were expecting a lower net profit of S$1.11 billion.
AdvertisementThe results from Singapore's second-largest listed lender followed double-digit growth reported by DBS Group and United Overseas Bank for the quarter.
OCBC said its profit growth for the second quarter was supported by higher net interest income and non-interest income, driven by better performances in its banking, wealth management and insurance units.
Net interest margin - a key gauge of a bank’s profitability - came in at 1.67 per cent in the second quarter, 2 basis points higher than 1.65 per cent a year earlier.
Net interest income grew 8 per cent to S$1.45 billion, supported by the improvement in net interest margin and stronger loan growth.
AdvertisementAdvertisementThe bank has declared an interim dividend of S$0.20 per share for the first half of 2018, up from S$0.18 a year ago.
With its second-quarter numbers, OCBC posted net earnings of S$2.32 billion for the first half of the year, up 22 per cent from a year ago.
Still, OCBC CEO Samuel Tsien said the operating environment remains “increasingly challenging”, and that the bank is "watchful of severe implications" to the global economy and financial markets from escalating trade and political tensions.
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