The local banks have delivered a spectacular performance for 2023. Surging interest rates have lifted net interest margins across the board, resulting in a sharp jump in net interest income. OCBC Ltd (SGX: O39) is no exception. The lender saw its share price hit a 52-week high of S$13.89 recently and is up 5% year-to-date. Investors, however, will be curious to know if the bank can continue with its strong performance. Let’s find out.

A stellar set of earnings

OCBC ended 2023 with a bang as the bank released an impressive set of earnings. Net interest income climbed 25% year on year to S$9.6 billion, buoyed by an improvement in its net interest margin (NIM) from 1.91% in 2022 to 2.28% in 2023. Non-interest income also served up a 7% year-on-year increase to S$3.9 billion, taking the bank’s total income up 20% year on year to S$13.5 billion. The blue-chip lender’s net profit clocked in at a record S$7 billion for 2023, up 27% from a year ago....