OCBC posts 8% slide in 2Q net profit on lower contributions from Great Eastern

OCBC Bank yesterday reported a second-quarter net profit of $597 million, a 8 per cent slide from the same quarter a year ago, below analysts' forecast of $643 million. -- ST FILE PHOTO: DESMOND WEE 
OCBC Bank yesterday reported a second-quarter net profit of $597 million, a 8 per cent slide from the same quarter a year ago, below analysts' forecast of $643 million. -- ST FILE PHOTO: DESMOND WEE 

OCBC Bank yesterday reported a second-quarter net profit of $597 million, a 8 per cent slide from the same quarter a year ago, below analysts' forecast of $643 million.

This was due to reduced profit contribution from its subsidiary Great Eastern Holdings, which reported a 77 per cent drop in the net profit for the three months to June 30.

Great Eastern was affected by unrealised mark-to-market losses in its non-participating fund.

The bank underperformed DBS, which reported a rise in second-quarter net profit of 10 per cent, and United Overseas Bank, with earnings up 9.9 per cent. The latter two beat market expectations.

OCBC's second-quarter net interest income grew 3 per cent to $961 million, from $931 million in the same period last year, driven by strong customer loan growth.