OCBC Q2 profit up 14% to $1.94b, beating estimates

Bank still weighing its options on offer bid for insurer Great Eastern, says group CEO

- Prisca Ang

OCBC Bank's second-quarter earnings grew more than expected on strong growth in fee, trading and insurance income, as well as a decline in allowances.

Net profit for the second quarter rose 14 per cent to $1.94 billion, from $1.71 billion a year ago. The results blew past the $1.82 billion forecast from analysts polled by LSEG.

The board has declared an interim dividend of 44 cents per share, up 10 per cent from a year ago. This represents a payout ratio of 50 per cent of the earnings for the first half of 2024.

On OCBC's bid to acquire the rest of Great Eastern Holdings (GEH) and delist the insurer, group chief executive officer Helen Wong said the bank will continue to evaluate its options. It will do so over the three months from July 23, when the bank announced that minority shareholders who had not sold their shares to the bank could still do so under the terms of the offer.

OCBC's offer closed on July 12 with the bank holding 93.32 per cent of GEH's shares, not enough to trigger a compulsory acquisition. GEH has been suspended from trading since July 15, when the number of its shares in public hands fell below the 10 per cent free float threshold.