For the three months ended March, net profit was S$856 million, down from S$993 million a year ago.
People queueing at an OCBC branch in Singapore. (File photo: TODAY)
SINGAPORE: Oversea-Chinese Banking Corp (OCBC), Singapore's
second-biggest lender, announced on Friday (Apr 29) a 14 per cent
decline in quarterly net profit, as its insurance income dipped and
allowances rose.
For the three months ended March, net profit was S$856 million, down from S$993 million a year ago.
Profit from its life assurance unit plummeted 58 per cent, a
fall of S$116 million, largely due to unrealised mark-to-market losses
from subsidiary Great Eastern Holdings’ bond and equity investment
portfolio, the bank said.
Wealth management income, comprising income from insurance,
private banking, asset management, stockbroking and other wealth
management products, was down 17 per cent to S$482 million, from S$583
million a year ago.
As at Mar 31, OCBC’s non-performing loans reached S$2.15 billion, up
from S$1.97 billion in the prior quarter and S$1.35 billion a year ago.
Most of the increase was from the downgrades of a number of large
corporate accounts in the oil and gas support services sector, which
required their loan payment terms to be restructured, the bank said.Net allowances for loans and other assets rose to S$167 million from S$64 million a year ago.
- CNA/cy
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