May 10, 2019 / 12:27 AM / 5 months ago

Singapore lender OCBC beats estimates with 11 pct rise in Q1 profit

FILE PHOTO: People pass an OCBC Bank office in Singapore April 18, 2017. REUTERS/Edgar Su/File Photo

SINGAPORE (Reuters) - Singapore’s Oversea-Chinese Banking Corp Ltd reported an 11 percent rise in quarterly profit on Friday that beat market estimates, driven by broad-based growth, while net interest income grew 8 percent to record levels.

The city-state’s second-biggest listed lender’s net profit came in at S$1.23 billion ($901.5 million) versus S$1.11 billion a year earlier, and compared with the S$1.16 billion average estimate of five analysts, according to data from Refinitiv.

OCBC, the last domestic bank to report results, reported a big rise in allowances for impaired loans to S$231 million from S$13 million in allowances a year earlier.

“Given the structural changes taking place in the offshore oil industry and continued absence of visible recovery in this sector, a prudent decision was made to substantially reduce collateral valuations further, to the extent of writing down vessels pending employment to scrap value,” OCBC said in a statement.

Reporting by Anshuman Daga; Editing by Stephen Coates

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