Singapore bank OCBC's Q2 profit jumps 28%

Singapore's second-largest lender Oversea-Chinese Banking Corp Ltd (OCBC) reported a stronger-than-expected 28 per cent jump in quarterly profit and gave a robust outlook as rising interest rates pushed up its net interest margins.

With Singapore relaxing most of its COVID-19 local and travel restrictions since early April this year, banks are benefiting from the rebound in economic recovery of the Asian financial hub.

The bank's shares rose 1.35 per cent in a mostly flat market in early Singaporean trade on Wednesday.

"Overall economic growth in our key markets is expected to remain positive this year but at a slower pace due to the heightened headwinds in the operating environment," OCBC's Group Chief Executive Helen Wong, who took charge last year, said in the results statement on Wednesday.

She said growth in net interest income from rising interest rates is expected to make up for near-term pressure on non-interest income. She said credit costs are expected to be at the low end of its guidance. OCBC's net profit rose to S$1.48 billion ($1.1 billion) in April-June from S$1.16 billion a year earlier and versus the S$1.22 billion average of five analysts' estimates compiled by Refinitiv.