Non-interest income was down 2% y-o-y to $1.1 billion. While fees and insurance were up, trading income dropped by 67% y-o-y, largely due to unrealised mark to market losses in the investment portfolio of Great Eastern Holdings, OCBC’s insurance subsidiary.
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With an improving credit environment, the bank booked total allowances of $163 million, down 54% y-o-y.
Non-performing loan ratio for the quarter was 1.5%, similar to the preceding quarter, and a drop of 0.1 percentage point compared to Q3FY2020.
The bank’s CET1 CAR was 15.5%, down from 16.1% for the quarter ended June, but an improvement from the 14.4% seen in Q3FY2020.
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Group CEO Helen Wong notes that the Q3 numbers were “resilient”, even with the “challenging conditions” caused by the Delta variant of the virus.
“The momentum across our banking, wealth management and insurance business has continued to grow, as reflected by loan, net new money, fee and insurance sales growth,” she says, adding that asset quality is stabilising as the economic situation improves.
“We remain positive on the long-term outlook but are watchful of the near-term headwinds from the pandemic,” adds Wong.
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OCBC closed on Nov 2 at $11.96, up 0.084%.
