OCBC Q4 net profit rises 12% to S$1.62 billion; declares S$0.42 final dividend

OCBC’s web revenue for the fourth quarter ended Dec 31, 2023 gained 12 per cent to S$1.62 billion from S$1.44 billion a yr prior, pushed by a 2 per cent enhance in working revenue in addition to decrease allowances.

The newest revenue determine fell wanting the S$1.72 billion estimate based mostly on one analyst polled by Bloomberg.

On Thursday (Feb 28), the lender reported a web curiosity earnings of S$2.46 billion, up 3 per cent from a yr in the past as common belongings grew 4 per cent.

Net curiosity margin (NIM) moderated 2 foundation factors to 2.29 per cent, which OCBC attributed to greater funding prices that greater than offset its enhance in asset yields.

Non-interest earnings rose 25 per cent to S$811 million, as web charge earnings elevated 16 per cent yr on yr as a consequence of greater charges from wealth administration, bank card and loan-related actions. Net buying and selling earnings additionally improved 22 per cent on the again of upper buyer circulation treasury earnings, offset partly by a decline in insurance coverage earnings.

The financial institution’s non-performing mortgage ratio as at Dec 31, 2023 was 1 per cent – down 0.2 share level from the prior yr.

Total allowances for the quarter stood at S$187 million, down 41 per cent from S$314 million within the prior yr as a consequence of a decline in allowances for each impaired and non-impaired belongings.

The financial institution declared a ultimate dividend of S$0.42 per share, bringing its complete dividend for the complete yr to S$0.82 per share, up 21 per cent from S$0.68 the prior yr.

It represents a dividend payout ratio of 53 per cent of the group’s FY2023 web revenue, which was up 27 per cent at S$7.02 billion.

Shares of OCBC closed Tuesday S$0.02 or 0.2 per cent decrease at S$13.31.

Source: www.businesstimes.com.sg”