OCBC records net profit of S$1.97 billion for 3rd quarter of 2024

OCBC recorded a net profit of S$1.97 billion for the third quarter of 2024, an increase of 9 per cent from S$1.81 billion for the same period a year earlier.

The figure also marks a 2 per cent increase from a net profit of S$1.94 billion for the second quarter of 2024, according to a press release by OCBC.

Net profit for the first nine months of 2024 increased by 9 per cent to S$5.90 billion from the same period in 2023.

OCBC said its strong year-on-year performance for the third quarter of 2024 was driven by the "robust" non-interest income growth and lower allowances.

Its performance was also driven by increased wealth management activities, which lifted fee and trading income, with insurance income higher as well.

Operating expenses increased, but outpaced by growth in income

OCBC also reported that its operating expenses for the same quarter were S$1.46 billion.

This marked an increase of 9 per cent on a year-on-year basis and a 7 per cent increase from the second quarter of 2024.

OCBC added that its operating expenses underpinned by higher expenses associated with increased business volumes, as well as IT-related expenses amidst OCBC's continuing digitalisation initiatives.

During this period, S$15 million of costs relating to the integration of PT Bank Commonwealth (PTBC) in Indonesia were also recorded.

However, as income growth outpaced the increase in expenses, the cost-to-income (operating costs as a proportion of income) ratio improved to 38.5 per cent, from 39.1 per cent in 2023.

OCBC said it was "firmly" placed to achieve its 2024 targets, Reuters reported.

The bank's shares closed at S$15.88, marking a rise of S$0.58 or 3.8 per cent, on Nov. 7.

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