OCBC profits up 12% to $1.06b in Q3

Wealth management income, which grew 12%, boosted the bank’s profits.

OCBC is on a tear as its profits rose 12% YoY from $943m to $1.06b in Q3.

According to a press release, OCBC continued to show a stable performance for its banking, wealth management, and insurance businesses in Singapore, Malaysia, Indonesia, and Greater China.

Net interest income grew 12% YoY to $1.38b, thanks to higher asset growth and net interest margin (NIM).

OCBC's customer loans also rose by 11% YoY, broad-based lending across industries and geographical segments.

Here's more from OCBC:

Non-interest income was 1% YoY higher at $978m as compared to $970m a year ago.

Fees and commissions increased 14% YoY to $488m, mainly from wealth management, fund management and trade-related income.

Wealth management fee income grew 32% YoY, partly contributed by the former wealth and investment management business of Barclays PLC in Singapore and Hong Kong (Barclays WIM) which was acquired in November 2016.

Net realised gains from the sale of investment securities increased 55% YoY from a year ago to $64m, while net trading income was 27% YoY lower at $118m.

Profit from life assurance rose 23% YoY to $201m as operating profit from Great Eastern Holdings’ (GEH) underlying insurance business grew year-on-year and its investment portfolio achieved positive performance as a result of favourable market conditions.