appConfigEntityId

bodyType

customContents

entityId

entityUuid

isVideo

articlePageQuery

article

articleSchemaContent

content

hooksArticlePageAdvertisementConfigArticle

appConfig

filter

json

liveArticle

Reuters

Oversea-Chinese Banking Corp, Singapore's second-biggest lender, yesterday posted a 54 per cent rise in quarterly net profit, beating expectations thanks to brisk loan growth and a strong performance from its insurance unit.
OCBC, which boosted its China exposure last week by gaining over 90 per cent control of Hong Kong lender Wing Hang Bank, said it expected to take advantage of growing investment and trade flows between China and Southeast Asia.
The bank earned S$921 million (HK$5.73 billion) in the three months to June 30, compared with S$597 million in the same period a year earlier. The figure topped the S$796 million average forecast of six analysts polled by Reuters.

OCBC's shares have underperformed those of DBS and United Overseas Bank this year since it became known the bank intended to buy Wing Hang, a move that increased its exposure to China's slowing economy.
Investors were also concerned about a potential rights issue of about S$3 billion to fund the acquisition.
OCBC shares are 3.3 per cent lower so far this year, compared with an almost 6 per cent rise for larger rival DBS and an 8.3 per cent gain for UOB.
Singapore banks are witnessing a slowdown in the housing market in response to government cooling measures, forcing them to diversify earnings from further into areas such as trade finance and wealth management.
OCBC's quarterly net interest income - the gap between what a bank makes from loans and pays on deposits - rose 17 per cent to S$1.1 billion, on the back of a 12 per cent year-on-year rise in customer loans.
Contributions from insurance unit Great Eastern boosted non-interest income by 40 per cent. Bad debt charges fell just over 20 per cent to S$66 million.


OCBC quarterly net profit jumps 54pc

OCBC said it expected to take advantage of growing investment and trade flows between China and Southeast Asia. Photo: EPA

OCBC's shares have underperformed its Singaporean rivals after it became known it wanted to buy Wing Hang Bank. Photo: Dickson Lee

Singapore's OCBC wraps up takeover of Wing Hang Bank

Wing Hang Bank will boost OCBC's profitability by 2017, says the Singaporean bank, which aims to boost its China exposure. Photo: Dickson Lee

OCBC edges nearer to Wing Hang full control

Regulations allow OCBC to delist Wing Hang once it owns 90 per cent of the shares. Photo: AFP

OCBC unfazed by hedge fund's stakebuilding in Wing Hang Bank

Samuel Tsien, chief executive of Oversea-Chinese Banking Corp, which is buying Wing Hang Bank. 

Business

Banking & Finance

Oversea-Chinese Banking Corp, Singapore's second-biggest lender, yesterday posted a 54 per cent rise in quarterly net profit, beating expectations thanks to brisk loan growth and a strong performance from its insurance unit.
