OCBC profit up 12% in Q4 to $1.62b, crosses $7b for FY2023

Board recommends final dividend of 42 cents, bringing full-year dividend to 82 cents

- Prisca Ang

OCBC Bank’s earnings rose in the fourth quarter of 2023 due to higher operating profit and lower allowances for potential bad loans, even as it faced increased funding costs that affected its profit margins.

Net profit for the three months to December 2023 rose 12 per cent to 1.62 billion from 1.44 billion a year ago, it said on Feb 28.

Its earnings fell short of the 1.71 billion forecast by analysts in a Bloomberg poll.

The bank’s full-year earnings grew 27 per cent to 7.02 billion as its margins increased in its key markets of Singapore, Malaysia, Indonesia and Greater China amid higher interest rates.

This marked the first time its profits crossed the 7 billion mark.

The board recommended a final dividend of 42 cents per share, up from 40 cents a year ago. The move brings total dividend for the whole of 2023 to 82 cents an increase from 68 cents a year ago.

It represents a payout ratio of 53 per cent of the group’s net profit for 2023, in line with a previously announced target for a 50 per cent ratio.

Group chief executive Helen Wong said 2024 is likely to be a more challenging year than 2023 amid a slowdown in global growth, although Asia is expected to perform better than the global average.

“We remain watchful of impact from geopolitical economics and market developments, and of howa continued high interest rate environment may impact our customers,” she said at a briefing.