OCBC's second-quarter net profit jumps 54% to $921m

OCBC Bank has posted a 54 per cent rise in its second-quarter net profit from the same period a year ago to $921 million. -- PHOTO: ST FILE
OCBC Bank has posted a 54 per cent rise in its second-quarter net profit from the same period a year ago to $921 million. -- PHOTO: ST FILE

SINGAPORE - OCBC Bank has posted a 54 per cent rise in its second-quarter net profit from the same period a year ago to $921 million.

The record quarterly earnings were due to higher net interest income, strong non-interest income growth and gains in the market value of assets held by its insurance business, the bank said on Tuesday.

Net interest income climbed 17 per cent from a year ago to a new high of $1.13 billion in the second quarter, led by strong asset growth and an increased net interest margin.

Customer loans rose 12 per cent year-on-year to $177 billion, with broad-based growth across all key customers segments and geographies.

Net interest margin for the quarter - a gauge of the profitability of the bank's loan book - was 1.7 per cent, higher than the margin of 1.64 per cent in the same period last year. The improvement resulted from higher loan spreads and better returns from money market activities.

Non-interest income rose 40 per cent year-on-year to $850 million. Fee and commission income of $353 million increased 2 per cent from a year ago, led by higher wealth management and trade-related income.

Net trading income, primarily treasury-related income from customer flows, grew 48 per cent to $133 million.