Friday, August 12, 2022

OCBC Q1 revenue slips 10% to $1.36 billion on decrease buying and selling earnings, life insurance coverage revenue

Must read

SINGAPORE – OCBC Financial institution reported on Friday (April 29) a decline in first-quarter earnings from a quarterly document a yr in the past amid decrease wealth administration charges, buying and selling earnings and life insurance coverage revenue.

Internet revenue for Singapore’s second-biggest native financial institution got here in at $1.36 billion for the three months to March, down 10 per cent from a yr in the past however forward of the $1.26 billion forecast by monetary information platform Refinitiv.

Its earnings have been decrease than the $1.5 billion it reported a yr in the past on the again of sturdy efficiency of its wealth and insurance coverage companies, and decrease allowances.

Singapore’s different two native banks, DBS Financial institution and UOB, additionally reported on Friday first-quarter earnings that fell 10 per cent from a yr in the past amid weaker and risky markets.

OCBC group chief govt Helen Wong mentioned Asia’s progress is predicted to stay resilient because the world transits to an endemic Covid-19 surroundings.

“The gradual reopening of economies and borders in South-east Asia will drive an additional rise in financial actions and we proceed to intently monitor the evolving pandemic scenario in Higher China.

“Trying forward, we shall be vigilant to dangers arising from geopolitical tensions, rising inflation and the tempo of coverage normalisation. We are going to proceed to be disciplined and prudent in pursuing our technique to excel for sustainable progress,” she mentioned.

OCBC’s internet curiosity earnings rose 4 per cent yr on yr to $1.5 billion. Asset progress of 5 per cent was partly offset by a one-basis level drop in internet curiosity margin – a key gauge of banks’ profitability – to 1.55 per cent.

Non-interest earnings slid 23 per cent to $1.14 billion as a consequence of decrease wealth administration charges, buying and selling earnings and life insurance coverage revenue.

“The prior yr’s non-interest earnings was underpinned by sturdy buyer and funding actions arising from beneficial market circumstances,” mentioned OCBC.

Working bills rose 5 per cent primarily as a consequence of greater employees prices linked to headcount progress and an increase in prices associated to data know-how. In the meantime, allowances put aside for loans and different belongings for the quarter have been 73 per cent decrease than a yr in the past.

OCBC’s income fell 9 per cent from a yr in the past to $2.64 billion.

Its newest earnings have been 39 per cent greater than within the earlier quarter, pushed by an increase in working revenue and decrease allowances.

Supply hyperlink

More articles


Please enter your comment!
Please enter your name here

Latest article