RM472m operating profit for OCBC

  • Business
  • Thursday, 27 Feb 2003

OCBC Bank (M) Bhd has reported an increase in operating profit before provisions but a decline in pre-tax profit for the year ended Dec 31, 2002. 

Operating profit before provisions increased by 6.1% to RM472.2mil, driven by revenue growth and cost management.  

However, pre-tax profit declined by 13.5% to RM277.1mil, mainly due to lower write-back in allowance for diminution in debt securities last year, a one-time impairment losses on properties and marginally higher allowance for losses on loans and financing. Total revenue increased by 2% to RM693mil last year compared with 2001, underpinned by robust non-interest income growth of 26.7% moderated by a decline in net interest income of 2%.  

The group achieved a gross loan growth of 6% or RM900mil to RM15.9bil in 2002 compared with the previous year.  

The growth came largely from housing loans as a result of aggressive campaigns and the launch of 2 new home loan products. 

Total assets base also increased by 5.1% or RM1.1bil to RM22.3bil.  

Non-performing loans rose from RM1.5bil to RM1.7bil as at Dec 31, 2002 resulting from measures which included an extensive portfolio review process to apply more proactive loan classification criteria for early problem recognition and early remedial actions. 

Shareholders' funds increased from RM1.7bil to RM1.9bil in December 2002 while the risk weighted capital ratio of the bank strengthened from 13.12% to 14.46% with the inclusion of last year's profits. 

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