OCBC Group third-quarter net profit up 5% to S$759m

Customer-related and regional businesses drove growth.

Oversea-Chinese Banking Corporation Limited (OCBC Bank) reported a net profit after tax of S$759 million for the third quarter of 2013 (3Q13). Excluding non-core gains realised a year ago (3Q12) from the divestment of the Group's stakes in Fraser and Neave, Limited and Asia Pacific Breweries Limited, core net profit after tax rose 5% from a year ago, and 27% from the previous quarter (2Q13), the bank said in its results release.

OCBC cited sustained performance of the Group's broad-based customer-related businesses as driving continued growth in net interest income, record fees and commissions, and higher life assurance profit.

The Group's Malaysian and Indonesian banking subsidiaries each recorded a 21% year-on-year increase in net profit after tax, in local currency terms, while Great Eastern Holdings' earnings contribution to Group core net profit after tax rose 49%.

Net interest income rose 4% to a quarterly high of S$978 million driven by robust asset growth.

Non-interest income, excluding divestment gains, rose 3% to S$779 million.

Operating expenses of S$681 million for the quarter were lower as compared to S$685 million a year ago.

Core net profit after tax for 3Q13 notably grew 27%.

Commenting on the Group’s performance, CEO Samuel Tsien said: “We are pleased with our third quarter results. The challenging market conditions associated with the uncertainty over the timing of the US Federal Reserve’s tapering of bond purchases have reduced our income contribution from trading and market-related activities. However, our customer franchise and the strong momentum across our regional businesses have continued to contribute to robust lending, fee-based and insurance performance. We see further opportunities to deepen our commercial, wealth management and insurance presence in our key markets, and will continue to drive disciplined and sustainable growth in the region.”

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