Oversea-Chinese Banking Corp. reported a jump in second-quarter profit driven by an expansion in lending margins even as allowances for potentially soured assets more than tripled.
Net income rose 34% to S$1.71 billion ($1.3 billion) from a year earlier in the three months ended June 30, Southeast Asia’s second-largest lender said Friday. That compared with the S$1.74 billion average estimate of five analysts surveyed by Bloomberg.
Chief Executive Officer Helen Wong said the bank is “watchful” of impacts from persistent inflationary pressures and higher interest rates. She slightly raised guidance for lending margins, which are now expected above 2.2% for the year.
Singapore’s major lenders are benefiting from higher interest rates alongside global peers. DBS Group Holdings Ltd. and United Overseas Bank Ltd. both reported quarterly profit that came in above forecasts. The former joined Standard Chartered Plc to signal an improving outlook for the remainder of the year after the Federal Reserve’s latest rate hike last week.
