OCBC says Q3 profit rises 12 pct to record

OCBC posts a 12% rise in quarterly profit to a record, supported by robust growth in net interest income. (Bloomberg pic)

SINGAPORE: Singapore’s Oversea-Chinese Banking Corp Ltd (OCBC) reported a 12% rise in quarterly profit to a record on Thursday, supported by robust growth in net interest income.

Growing worries about the impact of an intensifying trade row between China and the United States on Singapore’s export-reliant economy and curbs on Singapore’s property market have muddied the outlook for banks after they reported record profits last year.

“As we remain alert to developments in the global economy and financial markets, our strong liquidity and capital base will position us well for prudent and sustainable growth,” OCBC CEO Samuel Tsien said in a statement.

Singapore’s second-biggest listed lender said net profit came in at SG$1.25 billion (RM3.77 billion) in the three months ended Sept 30 versus SG$1.11 billion a year ago.

This was slightly higher than the average estimate of SG$1.15 billion from three analysts, according to data from Refinitiv.

The bank’s net interest margin (NIM) rose 6 basis points to 1.72%, helping push net interest income to SG$1.51 billion in the quarter, up 9% from a year ago. The increase in NIM was driven by improved margins in Singapore, Malaysia and Greater China, and a higher average loans-to-deposits ratio.

Wealth management income rose 6%.