The quarter’s earnings were driven by broad-based income growth and lower allowances. OCBC Bank recorded a net profit of S$1.5 billion ($1.13 billion) for the January-March period, a jump of 115 percent from the same period last year (S$698 million), and 33 percent higher than the preceding quarter (S$1.13 billion), according to financial results posted on Friday.
The bank said the record quarterly profit was driven by broad-based income growth and lower allowances. OCBC hit a new high in fee income (S$585 million), while making a far smaller allowance compared with the year-ago period (S$161 million vs. $657 million). Performance was also boosted by its insurance arm Great Eastern, which reported a twelvefold increase in profits this quarter.
Income from wealth management, comprising insurance, premier and private banking, asset management, and stockbroking, rose 40 percent to S$1.21 billion – 41 percent of the group’s total income.
Assets under management at Bank of Singapore, its private banking arm, rose 1 percent from the previous quarter to reach $123 billion as of 31 March 2021.
OCBC highlighted growing momentum from renewed market optimism across its businesses, as well as improved quarterly earnings from its overseas banking subsidiaries.
While we remain watchful of the prevailing risks in the operating environment, our strong balance sheet and capital position will enable us to capitalize on opportunities arising from improved economic conditions, particularly in ASEAN and Greater China,» OCBC chief Helen Wong said.
Earnings at Singapore’s «big three» local banks all beat analyst estimates (DBS: S$1.44 billion, OCBC: S$1.13 billion, UOB: S$891.4 million, according to Refinitiv).
DBS, which announced its first-quarter results last week, also experienced a strong quarter, doubling its income from the quarter before to reach S$2.01 billion and posting record wealth management fees.
UOB’s earnings grew to S$1 billion for the same period – up 46 percent on the back of strong fees, trading, and investment income.