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.
See: RHB stays 'overweight' on Singapore banks with UOB and OCBC as preferred picks
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.
See also: Creative guides for ‘similar level of operating loss’ for 2HFY2025
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.
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.
See also: Fortress Minerals earnings for 1QFY2026 up 7.2% y-o-y to US$2.48 mil
“We remain positive on the long-term outlook but are watchful of the near-term headwinds from the pandemic,” adds Wong.
For more stories about where the money flows, click here for our Capital section
OCBC closed on Nov 2 at $11.96, up 0.084%.
