Singapore's OCBC beats Q3 profit forecast

Singapore's Oversea-Chinese Banking Corp (OCBC) said Wednesday its third quarter net profit rose 12 percent year on year, boosted by trading gains and lower bad debt charges. OCBC earned 450 million Singapore dollars (321 million US) in the three months to September, up from 402 million dollars last year and better than the 292 million dollars average forecast in a Dow Jones Newswires poll of analysts. Net interest income climbed one percent to 689 million dollars, while non-interest income declined 15 percent to 392 million dollars due partly to a loss linked to the bank's life insurance unit Great Eastern. OCBC took a hit of 213 million dollars after Great Eastern decided in July to redeem its complex derivatives at a loss. The bank set aside 52 million dollars in allowances for bad debt for the quarter, sharply down from 156 million dollars the year before and 102 million dollars the previous quarter. Operating expenses were down five percent on year. "Our strong liquidity and capital have served us well amidst global uncertainties," said OCBC chief executive David Conner. "With the acquisition of ING's Asia private banking business and our further investment in the Bank of Ningbo (in China), we are taking advantage of the economic downturn to further strengthen our competitive position and add to our future growth opportunities." OCBC on October 15 announced the purchase of ING's Asian private banking business for 1.46 billion US dollars in cash. The deal would turn OCBC into a major player in a sector that caters to rich individuals and families globally, including the expanding ranks of Asian millionaires, analysts have said.