OCBC doubles Q1 profit on lower credit allowances

SINGAPORE: Oversea-Chinese Banking Corp (OCBC) beat market estimates with a more than doubling of its quarterly profit on Friday (May 7), thanks to a robust performance in its wealth management business and a drop in credit allowances.

The results rounded up a strong performance by DBS Group and United Overseas Bank in tandem with a recovering global economy. Net profit for OCBC came in at S$1.5 billion in the quarter ending in March, compared with the S$901.9 million average of three analysts' estimates compiled by Refinitiv, and versus S$698 million in the year-ago period.

"Earnings were up in our core markets and the momentum across our businesses is building up from renewed market optimism," Chief Executive Officer Helen Wong, who took charge last month, said in a statement.

OCBC's shares have risen over 23 per cent so far this year, outperforming peers and the broader local index.