OCBC's net profit up 11% to $791m in Q4

Net interest income rose to a record high.

OCBC today reported that its net profit after tax for the fourth quarter grew 11% year-on-year to $791 million, spurred by higher net interest income.

Its net interest income rose 24% year-on-year to$1.28 billion, on back of healthy asset growth and higher net interest margin.

Net allowances for loans and other assets were $154 million as compared to $68 million in 4Q13, with the increase partly contributed by the consolidation of OCBC Wing Hang.

Non-interest income grew 12% to S$762 million from S$679 million in 4Q13, largely driven by a 12% increase in fee and commission income and a 16% rise in profit from life assurance.

However, operating expenses climbed 29% on-year to $922m. Excluding OCBC Wing Hang, operating expenses rose 14% year-on-year mainly from higher staff costs and business promotion expenses.

For FY14, OCBC's net profit surged 39% to $3.84b. Excluding a one-off gain of $391m related to its increased ownership in Bank of Ningbo in 2014, core net profit after tax grew 25% year-on-year.

Net interest income reached a new high of $4.74b, up 22% from $3.88b a year ago, mainly driven by strong asset growth and improved net interest margins.