OCBC's Q1 net profit up 32% on-year

SINGAPORE: OCBC Bank on Friday posted a 32 per cent rise in its first-quarter net profit on the back of strength in both its net interest and non-interest income streams.

Net profit for the three months ended March 31 was S$832 million compared with S$628 million in the same quarter of 2011, OCBC said in a statement.

Net interest income grew 21 per cent to S$951 million from S$784 million, while non-interest income rose 28 per cent to S$790 million from S$618 million.

Compared with the previous quarter, net interest income increased three per cent on higher average asset volumes and a marginal increase in net interest margin.

Non-interest income (excluding divestment gains) grew 38 per cent, contributed by higher fees and commissions, increased gains from investment securities, and a significant increase in life assurance profit.

"Our first quarter performance reflects the strength of our customer franchise which enabled us to capture revenue opportunities in a generally improved market environment. Contribution from our insurance business was also higher as a result of improved investment performance," OCBC Chief Executive Samuel Tsien said in a statement.

"While the global economic outlook is still mixed, we expect the strength and further expansion of our customer franchise in our key markets will continue to provide us with significant growth opportunities."