Singapore’s OCBC (Oversea-Chinese Banking Corporation) posted an 11% surge in quarterly proceeds that surpassed market estimates; impelled by wide-based growth, while net interest income increased by 8% to record levels. The city-state’s second-largest listed lender’s revenue came in at $901.5 Million (S$1.23 Billion) against S$1.11 Billion a year previous, and correlated with the S$1.16 Billion average projection of five analysts, as per to data from Refinitiv. OCBC—which is the last domestic bank to post results—reported a big surge in allowances for damaged loans from S$13 Million to S$231 Million in allowances in the past year.
In a statement, OCBC stated, “Given the structural alterations taking place in the foreign oil industry and continued lack of visible recovery in this domain, a prudent decision was done to considerably lower collateral assessments further, to the level of writing down vessels awaiting employment to scrap value.” OCBC said the net interest margin increased by nine basis points to 1.76% from 1.67% a year ago, mostly owing to higher benefit yields in an elevating interest rate environment and advancement in gapping income from financial market placements. The customer loans increase by 5% from S$247 Billion to S$259 Billion.
Recently, OCBC was in news as it is Southeast Asia’s first bank to rule out finance new coal power plants. In an interview, Samuel Tsien—Chief Executive of OCBC—said to Bloomberg that the company will no longer support new coal-fired power projects in any country. Tsien stated, “We hope that by doing this, we will encourage the governments to do facilitating, deals for the countries to shift from coal to renewable energy.” OCBC is presently engaged in supporting two coal power projects in Vietnam, but these would be the last that the bank would finance owing to contract obligations.