SINGAPUR (dpa-AFX) - Oversea-Chinese Banking Corp. Limited (OCBC.SI, O39.SI) or OCBC Bank reported Friday that its second-quarter Group net profit fell 40 percent to S$730 million from last year's S$1.22 billion.
The results reflected significantly higher allowances against expected credit losses on a forward-looking basis in the deteriorating economic environment brought about by the COVID-19 pandemic.
Sequentially, profit grew 5 percent.
Operating profit before allowances grew 4 percent from last year to S$1.68 billion, driven by increased associates' contributions and a reduction in operating expenses.
Total income was S$2.625 billion, nearly flat as S$2.618 billion a year ago.
Net interest income fell 7 percent as asset growth was more than offset by margin compression, while non-interest income rose 11 percent.
In Singapore, Oversea-Chinese bank shares were trading at S$8.64, down 1.82 percent.
Copyright RTT News/dpa-AFX