OCBC net profit rose 7% to S$2.83b in H1

This was buoyed by higher net interest, although non-interest income fell during the period.

OCBC’s net profit totalled S$2.83b in the first six months of 2022, 7% year-on-year higher than the S$2.66b in H1 2021, the bank’s latest bourse filing showed. This was largely driven by higher net interest income and lower allowances.

OCBC has also announced that it is paying an interim one-tier tax exempt dividend for the financial year ending 31 December 2022 of 28 cents for every ordinary share.

For H1, net interest income totalled S$3.2b and was 10% higher than in 2021. OCBC mainly attributed the rise to a 6% increase in average asset balances and a 6 basis points rise in net interest margin (NIM) to 1.63%.

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Non-interest income dropped 10% compared to last year to S$2.32b, largely blamed on a drop in fee, investment, and trading incomes.

Operating expenses also rose 7% to S$2.46b, with OCBC reporting higher staff costs associated with salary increments and headcount growth to support business expansion; increased technology-related costs; and business promotion expenses.

Group total income remained mostly the same, rising 1% to S$5.52b in H1 2022 from S$5.49b in H1 2021.

For the second quarter of the year, group net profit jumped 28% to S$1.48b from S$1.16b in the same quarter in 2021. Compared to Q1 2022, group net profit rose 9%.

Net interest income was S$1.7b, which is 16% higher than Q2 2021’s S$1.46b. This is also 13% higher than the S$1.503b that OCBC reported in the first quarter of the current fiscal year.

Non-interest income in Q2 is 6% higher than last year, equalling S$1.179b. Compared to the first quarter of 2022, it is 3% higher.