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Singapore lender OCBC beats estimates with 11% rise in first quarter profit

Key Points
  • Singapore's Oversea-Chinese Banking Corp reported an 11% rise in quarterly profit on Friday that beat market estimates.
  • The city-state's second-biggest listed lender's net profit came in at S$1.23 billion ($901.5 million) versus S$1.11 billion a year earlier, according to data from Refinitiv.
A pedestrian walks past an Oversea-Chinese Banking Corp. (OCBC) branch in the central business district (CBD) of Singapore, on Saturday, Feb. 16, 2019.
Ore Huiying | Bloomberg | Getty Images

Singapore's Oversea-Chinese Banking Corp reported an 11% rise in quarterly profit on Friday that beat market estimates, driven by broad-based growth, while net interest income grew 8% to record levels.

The city-state's second-biggest listed lender's net profit came in at S$1.23 billion ($901.5 million) versus S$1.11 billion a year earlier, and compared with the S$1.16 billion average estimate of five analysts, according to data from Refinitiv.

OCBC, the last domestic bank to report results, reported a big rise in allowances for impaired loans to S$231 million from S$13 million in allowances a year earlier.

"Given the structural changes taking place in the offshore oil industry and continued absence of visible recovery in this sector, a prudent decision was made to substantially reduce collateral valuations further, to the extent of writing down vessels pending employment to scrap value," OCBC said in a statement.