OCBC increases 2nd quarter net profit by 15%

Oversea-Chinese Banking Corporation Limited 's second quarter grew by 15 % year on year to 577 million Singapore dollars or US$476.9 million.

The growth was attributed to strong interest income and fee income growth thanks to the combination of broad-based growth in loan, trade-related and wealth management activities.

The bank also exhibited a profit for the first half of the year, growing by 2 percent year on year to hit 990 million U.S. dollars.

The net interest income of OCBC Bank, one of the leading local banks, increased by 15 percent to 683.6 million U.S. dollars in the second quarter, driven by a growth of 27 percent in loans. Non- interest income rose 13 percent to 484.4 million U.S. dollars, supported by strong growth in fee income and life assurance profit.

The net interest margin, however, slipped to 1.87 percent due to the persistent low interest rate environment.

The bank's private banking business continued to grow strongly, with assets under management increasing by 12 percent in the first six months to 29.6 billion U.S. dollars at the end of June.

The bank will continue to focus on expanding its regional franchise for further growth, despite the inflationary risks, as well as possible negative implications of fiscal issues in the United States and Europe on global markets, said the bank's Chief Executive Officer David Conner.