- OCBC (SGX:O39) reported 2Q22 revenues of S$2.9bn (+12% y-o-y/+9% q-o-q) with a net profit of S$1.5bn (+28% y-o-y/+9% q-o-q higher), exceeding expectations.
- Stronger-than-expected net interest income on firm expansion of net interest margin (NIM). Net interest income increased 16% y-o-y/13% q-o-q to a new high of S$1.7bn on asset growth and NIM expansion.
- - Read this at SGinvestors.io -
- Improvement in credit costs due to better credit conditions; lower new NPA formation. 2Q22 credit costs were mainly general allowances for model updates, partly offset by write-back from credit upgrades. Total allowances: S$72m, 8bps (1Q22: S$44m, 6bps) comprise higher general allowances and lower specific allowances. The new NPA formation of S$182m (1Q22: S$296m) was offset by higher recoveries. The NPL ratio declined to 1.3% (1Q22: 1.4%) and allowance coverage increased to 99% (1Q22: 91%) on a decrease in NPAs.
- Read more at SGinvestors.io.
