Singapore’s second-largest lender Oversea-Chinese Banking Corp (OCBC) reported a 34 percent rise in quarterly profit on Friday (Feb 24), driven by higher interest rates, but income from wealth management fees and its insurance business fell sharply.
Net profit at Southeast Asia’s second-largest bank by assets rose to S$1.31 billion (US$976 million) from October to December a year earlier. However, profit fell 19 percent from the third quarter.
The city-state’s banks, among the most well-capitalised in the world, benefited from an early rebound in the pandemic-hit economy, but higher funding costs and weak wealth management fees have emerged as key risks.
OCBC’s fourth-quarter results showed non-interest income declined 42 percent from a year earlier, mainly due to lower wealth management fees as a result of subdued customer investment activities and valuation losses reported by the bank’s insurance business.
Group CEO Helen Wong said in a statement that the earlier-than-expected China reopening could provide support to regional economies. Interest rates are expected to remain high as inflationary pressures linger, she added.
Source: Reuters
