OCBC has reported a quarterly net profit of S$921m ($739m) for the second quarter of fiscal 2014, up 54% compared to the year ago quarter and ahead of analyst forecasts.
The record quarterly performance was underpinned by higher net interest income, strong non-interest income growth, mark-to-market gains in the insurance business and continued cost discipline.
Less positive second quarter metrics included a fall of 11% in operating profit to S$178m at OCBC’s retail and private banking unit, mainly attributable to higher expenses.
For the six months to 30 June, OCBC reported a record net profit of S$1.82bn, an increase of 41% from the year ago period.
OCBC CEO Samuel Tsien said: "We are very pleased with our record second quarter as well as first half earnings performance. Loans growth continued; net interest margin improvement was sustained, and non-interest income increased, led by higher insurance income, trade and wealth-related fees."
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In the second quarter, OCBC’s Singapore business unit accounted for 64% of total income and 61% of pre-tax profit; Malaysia remains the bank’s second -largest market with 17% of total income and 19% of pre-tax profit.
In the past year, OCBC has scored a number of retail banking hits, such as its hugely successful FRANK credit card with customer acquisition growth of 300% year-on-year.
Other retail banking highlights include the successful launch last year of OCBC Money Insights, Singapore’s first personal financial management tool for online and mobile banking.
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