Oversea-Chinese Banking First Quarter Profit Rises 13.7%

By Gaurav Raghuvanshi Features Dow Jones Newswires

Oversea-Chinese Banking Corp. Ltd. (O39.SG) on Tuesday reported a 13.7% on year rise in its net profit in the first quarter, driven by an increase in wealth management income and higher profit from its insurance business.

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Net profit in the March quarter was 973 million Singapore dollars (US$692.2 million), compared with S$856 million in the same period last year, Singapore's second-biggest bank by assets said in a regulatory filing.

Net interest income fell 3.1% on year to S$1.27 billion, but noninterest income jumped 30% to S$977 million, OCBC said. Fee and commission income also jumped 29% on year to S$481 million, led by a 70% rise in wealth-management fee income after OCBC acquired the wealth-management business of Barclays PLC in Singapore and Hong Kong in November 2016.

Wealth management contributed 32% of the bank's total income in the first quarter, compared with 23% last year.

The bank scaled back specific allowances from the previous quarter, and its ratio of bad loans was unchanged on quarter at 1.3%. In the same quarter of last year, the nonperforming loans ratio was 1.0% of total loans.

Write to Gaurav Raghuvanshi at gaurav.raghuvanshi@wsj.com

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(END) Dow Jones Newswires

May 08, 2017 20:10 ET (00:10 GMT)