By P.R. Venkat
Oversea-Chinese Banking Corp.’s fourth-quarter profit rose because of lower allowances and higher contributions from non-interest income.
Net profit rose 12% from a year earlier to 1.62 billion Singapore dollars ($1.21 billion), OCBC said Wednesday.
Total income during the period expanded 8% to S$3.27 billion, while net interest income rose 3% to S$2.46 billion. Non-net interest income came in at S$811.0 million, compared with S$646.0 million a year earlier.
Allowances for loans and other assets during the quarter were S$187 million, down from S$314 million.
The board increased the dividend payout, which will see the bank pay 82 Singapore cents a share as a dividend for 2023 compared with 68 Singapore cents a share the previous year.
This will translate to a payout ratio of 53% of the group’s 2023 net profit.
“Looking ahead, we anticipate challenges in the global macro environment, including changes in monetary policies, persistent inflationary pressures, major elections and rising geopolitical tensions,” Chief Executive Helen Wong said.
Write to P.R. Venkat at venkat.pr@wsj.com
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