Oversea-Chinese Banking Corporation Limited reported its financial results for the first half of 2022 (“1H22”). Group net profit for 1H22 rose 7% from a year ago (“1H21”) to SGD 2.84 billion ($2 billion). Net profit for the second quarter (“2Q22”) was SGD 1.48 billion ($1 billion), up 28% compared to a year ago (“2Q21”) and 9% from the previous quarter (“1Q22”).
Group net profit of SGD2.84 billion ($2 billion) increased 7% from a year ago, largely driven by higher net interest income and lower allowances.
Net interest income of SGD3.20 billion ($2.3 billion) was 10% above the previous year, mainly attributable to a 6% increase in average asset balances and a 6 basis points rise in net interest margin (“NIM”) to 1.63%.
Non-interest income of SGD2.32 billion ($1.7 billion) was 10% lower against last year, largely due to a drop in fee, investment and trading income.
Operating expenses of SGD2.46 billion ($1.8 billion) were 7% above last year, largely due to higher staff costs associated with salary increments and headcount growth to support business expansion, increased technology-related costs and business promotion expenses.
Total allowances were lower at SGD116 million ($84.7 million) as compared to S$393 million in the previous year, mainly due to a decline in allowances for impaired loans.
The group’s share of results of associates was SGD499 million ($364 million), an increase of 18% from the previous year.
The group’s annualised ROE was 11.0% for 1H22, higher than the 10.8% in 1H21, while annualised earnings per share increased to SGD1.26 from SGD 1.19 a year ago.
Re-disseminated by The Asian Banker