Singapore's OCBC says Q4 net interest income down 7 per cent, notes oil & gas loan stress

Singapore's OCBC says Q4 net interest income down 7 per cent, notes oil & gas loan stress
PHOTO: The Straits Times

Oversea-Chinese Banking Corp. (OCBC), Singapore's second largest listed bank, said net interest income fell 7 per cent in the fourth quarter of 2016 to S$1.25 billion with net allowances for loans and other assets of S$305 million, a jump of 57 per cent above S$193 million in the same quarter a year earlier.

Net profit after tax for the quarter declined 18 per cent on-year to S$789 million.

For the full year, net profit was 11 per cent lower at S$3.47 billion, while net interest income was down 3 per cent on-year to S$5.05 billion.

OCBC CEO Samuel Tsien highlighted the overall quality of the bank's portfolio remained sound but pointed to a weak operating environment.

"There continued to be stresses in parts of the portfolio, particularly within the oil & gas support services sector which drove increases in non-performing loans and allowances," Tsien said in a statement, adding he expected the headwinds facing the broader economy to likely persist.

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