- For the second quarter, net interest income fell by 6.6% year on year due to a lower net interest margin of 1.6% but was offset by a 2% year on year increase in OCBC’s loan book.
Banks are coming under the spotlight after the Monetary Authority of Singapore’s (MAS) urged the big three banks to limit their dividend payments to 60% of last year’s total annual dividend.
On Thursday, DBS Group Holdings Ltd (SGX: D05) and United Overseas Bank Ltd (SGX: U11) got the ball rolling by releasing their latest earnings.
Yesterday, it was Oversea-Chinese Banking Corp Limited’s (SGX: O39) turn to come under the microscope.
As expected, OCBC declared an interim dividend of S$0.159, which is 63% of the previous year’s S$0.25 interim dividend. The bank also offered a scrip option with the issue price of the shares set at a 10% discount.
Beyond that, there were eight key things that we learnt about the bank’s performance:
