OCBC Posts 24 Per Cent Gain In Q1

Vanessa Doctor

6 May 2010

Oversea-Chinese Banking Corp posted a 24 per cent rise in first quarter profit, driven mostly by optimism towards Singapore's economic situation.

In the wake of the global financial crisis, Singapore has emerged as one of the top destinations for both bankers and investors, with the economy estimated to expand as much as 9 per cent.

Net income went up from S$545 million in the year-earlier period to S$676 million ($487.7 million), while non-interest income grew 12 per cent to S$681 million. Allowances for loans and other assets declined from $197 million in the previous first quarter to just S$25 million.

"Asia's economic recovery continues to build momentum, signalling a positive outlook for the rest of the year," said David Conner, the chief executive officer of OCBC, in a statement.

OCBC acquired ING's private banking assets in Asia in October 2009, giving it access to quite a number of the region's growing wealthy. The transaction has been estimated to help triple the company's private banking assets to $23 billion.