OCBC sees y-o-y profit decrease in Q2

Banking and insurance giant OCBC saw a three per cent quarter-on-quarter rise in profits for the second quarter of 2016 – amounting to S$885 million (MOP5.23 billion/US$655.3 million), according to a press release issued by the company. The figure however represents a 15 per cent year-on-year decrease. The group attributes its drop in profit, compared to last year, as being due to a ‘lower insurance contribution and increased allowances which were largely set aside in the first quarter of 2016,’ it stated in the filing. Operating expenses for the period amounted to S$1.86 billion.
By segment, OCBC’s Global Corporate/Investment Banking segment dominated its first half-year operating profit before tax (after allowances and amortization), making up 46 per cent, followed by the group’s Global Consumer/Private Banking sector, with a weight of 25 per cent. The company’s operations were dominated by its Singapore operations in the first half of the year, accounting for 50 per cent of the total profit before tax– at S$1.08 billion – a 25 per cent drop year-on-year.
This was followed by its Greater China operations, at 22 per cent, of which eight per cent corresponds to the banks OCBC Wing Hang operations. Overall the Greater China segment generated S$475 million, a three per cent drop year-on-year.
The group’s OCBC Wing Hang segment saw a three per cent year-on-year drop in profit for the second quarter of 2016, however a quarter-to-quarter increase of 10 per cent – amounting to S$601 million for the quarter.