OCBC Logs Solid Wealth Figures, Helped By Barclays Acquisition

Josh O'Neill

28 July 2017

(OCBC) logged a 45 per cent jump in wealth management fee income year-on-year, boosted by the inclusion of Barclays' former wealth and investment management business in Singapore and Hong Kong.

The firm's “banking, wealth management and insurance operations delivered a strong year-on-year performance,” OCBC said in its second quarter results statement. The group did not break out the results of Bank of Singapore, its private banking business, however.

OCBC's post-tax net profit climbed 22 per cent YOY to reach S$1.08 billion ($793,830 million).

Net interest income grew 7 per cent to S$1.35 billion in the second quarter of 2017, up from S$1.26 billion a year ago. Non-interest income rose 34 per cent to S$1.05 billion.

Fees and commissions spiked 18 per cent to S$492 million, propelled by higher income associated with loan and trade-related activities, wealth and fund management, credit card and brokerage, OCBC said.

The bank's operating expenses for the quarter were up 6 per cent at S$992 million, partly because of an increase in staff costs associated with the inclusion of Barclays WIM, OCBC added.

“Strong business momentum was achieved across all three business pillars – banking, wealth management and insurance,” Samuel Tsien, OCBC chief executive, said. “Income growth was broad-based, lending activities were up, assets under management continued to rise, and underlying insurance business growth continued.