Oversea-Chinese Banking Corporation (OCBC) reported a net profit of SGD 3.93 billion ($2.9 billion) for the first half of 2024 (1H24), 9% higher as compared to SGD 3.59 billion ($2.6 billion) from the previous year (1H23).

The group’s strong first-half performance was underpinned by broad-based income growth which surpassed SGD 7 billion ($5.2 billion) for the first time, lifted by higher net interest income and non-interest income.

Operating expenses were well controlled, with cost-to-income ratio (CIR) improving to 37.5%. Allowances were 14% lower at SGD 313 million ($234.7 million). Customer loans grew 3% in constant currency terms, while asset quality remained sound with non-performing loan (NPL) ratio trending lower to 0.9%. The group maintained its healthy capital, funding and liquidity positions. On an annualised basis, return on equity improved to 14.5% and earnings per share was higher at SGD 1.74 ($1.30).

The board has declared an interim dividend of SGD 0.44 ($0.33), up 10% or SGD 0.40 ($0.30) from a year ago. This represents a payout ratio of 50% of the group’s 1H24 net profit.

Re-disseminated by The Asian Banker