OCBC third quarter profit up 27% to $442mln

Net profit is higher by $45mln than analysts had expected behind falling bad debt charges and higher insurance income.

Oversea-Chinese Banking Corp, Singapore's second-biggest lender, on Monday posted a 27 percent rise in quarterly profit on falling bad debt charges and higher insurance income, beating expectations.

OCBC posted a net profit of S$570 million ($442 million) in July-September, compared to S$450 million a year earlier.

That compared with an average forecast of S$516 million, according to seven analysts polled by Reuters.
Smaller rival United Overseas Bank last week posted an almost 38 percent jump in quarterly profit, firmly beating expectations as bad debts slumped while fees from loans and investments rose.

Singapore bank shares have underperformed the broader market this year as investors are concerned about weak margins as well as an economic slowdown in the next few quarters after a strong first half.

OCBC shares are up 0.7 percent so far this year, compared to an 8.6 percent decline in shares of rival DBS while UOB shares are down about 5 percent.

View the full story in Reuters.