OCBC's net profits up 34% to S$1.24b in Q4 2019

Core net profit leapt 10% to S$4.9b in FY 2019.

OCBC posted a 34% surge in Q4 2019 net profits to S$1.24b from $926m in Q4 2018, boosted mainly by growth in its wealth management and insurance franchise.

On a fiscal year basis, core net profit attributable to shareholders ended at S$4.9b in 2019, up 10% from S$4.4 in 2018.

Core earnings per share inched up to $1.11 in Q4 from S$0.85 in Q3. On a yearly basis, it rose from S$1.06 in 2018 to S$1.14 in 2019.

Net interest income 6% to S$1.6b in Q4 from S$1.52 the previous quarter due to loan growth and improved margins. Average consumer loans rose 3% from 2018, anchored by lending to corporate clients. Net interest margin (NIM) leapt 5bp to 1.77% in Q4 from 1.72% in Q3 on the back of management of funding costs.

Net trading income jumped to S$316m in 2019 from S$9m the previous year, driven by higher gains from treasury activities, a rise in customer flow income, and market-to-market gains.

Non-performing loans ended at 1.5% as of 31 December 2019.