Corrections & Amplifications
This title was correct at 03:20 GMT. The original version incorrectly stated that the figures represented net interest income.
By P.R. Venkat
The net profit of Oversea-Chinese Banking Corp. in the fourth quarter fell 14% year-on-year due to higher provisions and operating expenses.
Net profit for the quarter was S$973 million ($723.20 million) with net interest income of S$1.49 billion, OCBC said on Wednesday.
Total revenue in the quarter was higher at S$2.55 billion, compared to S$2.49 billion a year earlier.
For 2021, the group’s overall profit rose 35% year-on-year to S$4.86 billion, mainly due to lower allocations and higher non-interest income.
Total provisions for loans and other assets in 2021 were only S$873 million, compared to S$2.04 billion the previous year due to the impact of Covid-19.
In the fourth quarter, the bank said operating expenses were 15% higher than a year earlier at S$1.29 billion, mainly due to higher personnel costs related to strategic expansion and business growth.
The absence of government employment support grants during the quarter also weighed on fourth quarter performance.
“Looking forward, we are cautiously optimistic about an improving operating environment,” said OCBC chief executive Helen Wong.
Write to PR Venkat at [email protected]