© Reuters. A view of the OCBC Financial institution signage in Singapore Might 3, 2023. REUTERS/Caroline Chia
By Yantoultra Ngui
SINGAPORE (Reuters) -Singapore’s second-biggest lender Oversea-Chinese language Banking Corp (OCBC) reported on Wednesday a better-than-expected 39% soar in first-quarter revenue from a 12 months earlier on the again of sturdy internet curiosity revenue progress.
OCBC, which can be Southeast Asia’s second-biggest financial institution by property, mentioned January-March internet revenue rose to a document S$1.88 billion ($1.42 billion) from S$1.36 billion a 12 months earlier.
That beat the imply estimate of S$1.74 billion from 5 analysts polled by Refinitiv.
Singapore’s banks have been benefiting from sturdy inflows from rich prospects amid world financial uncertainty due to the city-state’s standing as monetary protected haven.
“Our mortgage portfolio was resilient and our wealth administration enterprise continued to draw internet new cash inflows,” OCBC Group Chief Government Officer Helen Wong mentioned in an announcement.
The financial institution reported a complete internet curiosity margin, a key gauge of profitability, of two.30% for the primary quarter, up from 1.55% in the identical interval a 12 months earlier. OCBC anticipated full-year internet curiosity margin within the area of two.2%.
The lender mentioned it was beginning to see progress in cross-border flows after China’s reopening, nevertheless it was additionally carefully monitoring volatility in developed markets and geopolitical tensions.
“Wanting forward, we’re watchful of tighter monetary circumstances which can sluggish world financial progress and elevate general dangers,” Wong mentioned.
OCBC, which counts Singapore, larger China and Malaysia amongst its key markets, mentioned internet curiosity revenue rose 56% to S$2.34 billion within the first quarter from a 12 months earlier.
Return on fairness rose to 14.7% within the first quarter from 10.6% in the identical interval of 2022.
The primary quarter was additionally sturdy for Singapore’s different main banks, with bigger peer DBS Group (OTC:) reporting final week a 43% soar in first quarter internet revenue that was additionally a document. Smaller United Abroad Financial institution (OTC:) posted final month a 74% surge in core internet revenue.
($1 = 1.3245 Singapore {dollars})
