OCBC’s posted a robust profit increase in the third quarter, which was fueled by a significant reduction in allowances.
OCBC registered S$1.22 billion ($904 million) in net profit for the third quarter, according to its latest results, marking a 19 percent year-on-year increase.
A significant reduction of allowances by 54 percent to S$163 million due to an improved credit outlook was a major contributor to profit growth.
Total income was flat at 1 percent growth to S$2.56 billion while operating expenses and associates grew 8 percent and 33 percent, respectively. As a result, pre-allowance operating profit was flat, decreasing 1 percent to S$1.576 billion.
Overall wealth management income – including insurance, premier and private banking, asset management and stockbroking – was down 7.4 percent to S$897 million.
OCBC’s private wealth arm, Bank of Singapore, saw assets under management increase 6 percent to S$167 billion ($123 billion) driven by inflows of net new money and positive market valuations.
Our third-quarter results were resilient, despite the challenging conditions associated with the Delta virus variant,» said OCBC chief executive Helen Wong. We remain positive on the long-term outlook but are watchful of the near-term headwinds from the pandemic.