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OCBC s earnings topped the $1.14 billion average estimate of six analysts polled by Bloomberg.PHOTO: ST FILE
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August 04, 2021
People pass by an OCBC bank branch in Singapore, on Nov 4, 2020.
Reuters
SINGAPORE - Singapore lenders Oversea-Chinese Banking Corp (OCBC.SI) and United Overseas Bank (UOBH.SI) beat quarterly profit estimates on Wednesday (Aug 4), driven by recovery in their core markets and lower provisions for loan losses.
Prospects in Singapore s banking sector have improved as a rebounding economy has boosted demand for mortgages and loans, while booming markets have bolstered the wealth management business.
At the same time, benign credit costs indicate that banks have been able to manage asset quality in the face of the pandemic affecting businesses.
Anshuman Daga
3 minute read
Summary
United Overseas Bank Q2 profit up 43% to S$1 bln
Loan losses down sharply
SINGAPORE, Aug 4 (Reuters) - Singapore lenders Oversea-Chinese Banking Corp (OCBC.SI) and United Overseas Bank (UOBH.SI) beat quarterly profit estimates on Wednesday, driven by recovery in their core markets and lower provisions for loan losses.
Prospects in Singapore s banking sector have improved as a rebounding economy has boosted demand for mortgages and loans, while booming markets have bolstered the wealth management business.
At the same time, benign credit costs indicate that banks have been able to manage asset quality in the face of the pandemic affecting businesses.
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SINGAPORE (Reuters) -Singapore lenders Oversea-Chinese Banking Corp and United Overseas Bank beat profit estimates, driven by recovery in core markets, but their sequential performance slowed sharply, underscoring challenges to maintain growth.
Prospects in Singapore s banking sector have improved as a rebounding economy has boosted demand for mortgages and loans, while booming markets bolstered the wealth management business.
At the same time, OCBC and UOB joined global peers such as HSBC and Standard Chartered in signalling strong asset quality after last year s huge provisions in the face of the coronavirus pandemic. The banks ample reserves and improved earnings provide them with very good buffers, said Eugene Tarzimanov, senior credit officer at Moody s Investors Service, who expected a moderate increase in the two banks non-performing loans over the rest of 2021 and 2022, particularly in foreign operations.