Record total income lifts OCBC’s net profit to S$3.93b in H1

Interim dividend for the period is 44 cents, an increase of 4 cents.

OCBC has reported a net profit of S$3.93b (approximately $2.94b) for the first six months of 2024, 9% higher than in H1 2023.

Broad-based income growth lifted up profits, surpassing S$7b ($5.23b) for the first time, lifted by higher net interest income and non-interest income, OCBC said in its latest financial statement for the period ending 30 June 2024.

Interim dividend for the period is 44 cents, up 10% compared to H1 2023. This represents a payout ratio of 50%.

Net interest income rose 3% to a new high of S$4.87b ($3.64b). 

Non-interest income jumped 15% to S$2.39b ($1.79b), driven by a 19% increase in wealth management fees.

Net trading income rose 28% to S$726m ($542.88m), which OCBC attributed to customer flow treasury income reaching a new high.

Insurance income was S$583m ($435.84m), 17% higher than in H1 2023. Total weighted new sales expanded 34% to S$973m ($727.58m), and new business embedded value (NBEV) grew 16% to S$339m ($253.49m).

Operating expenses increased 6% to S$2.72b ($2.03b) on the back of higher staff costs, IT-related expenses, and other operating expenses. The higher staff costs were from “annual salary increments” as well as continued investments for growth, OCBC said.

Total allowances are 14% lower at S$313m ($234.07m).

For the second quarter period, OCBC’s net profit was S$1.94b ($1.45b), 14% higher than in 2023. Net interest income and non-interest income rose, whilst operating expenses fell by 3%.