(Bloomberg) -- Oversea-China Banking Corp.’s third-quarter profit fell as soaring provisions for bad debts overshadowed higher lending and wealth management income.

  • Net income slid 6% to S$1.17 billion ($861 million) in the three months ended Sept. 30 from S$1.25 billion a year earlier, Singapore’s second-biggest bank said Tuesday. That was in line with the S$1.2 billion average of analysts’ estimates compiled by Bloomberg.

Key Insights

  • OCBC’s earnings followed those of smaller competitor United Overseas Bank Ltd., which last week reported profit growth that stemmed largely from wealth management and offset swelling provisions.
  • The bank said the increase in loan-loss provisions reflects weaknesses in specific industries and the global economic slowdown.
  • Net interest margin shrank 2 basis points from the previous quarter, reflecting declining interest rates.
  • Assets under management at Bank of Singapore, OCBC’s private bank, rose 5% from a year earlier, contributing to gains in non-lending income.

Get More

  • For more details of the earnings, click here.
  • With DBS Group Holdings Ltd. set to report on Nov. 11, see our preview here.
  • Read our exclusive on OCBC’s digital banking tie-up.

To contact the reporter on this story: Chanyaporn Chanjaroen in Singapore at cchanjaroen@bloomberg.net

To contact the editors responsible for this story: Marcus Wright at mwright115@bloomberg.net, Russell Ward, Peter Vercoe

©2019 Bloomberg L.P.