OCBC Malaysia posts better FY12 results

OCBC Bank (Malaysia) Bhd's pre-tax profit for calendar year 2012 rose five per cent to RM1.085 billion from 2011.

Net profit grew four per cent to RM811 million owing to strong growth in operating profit, the bank said in a statement today.

OCBC
Malaysia's total income for the year rose eight per cent to slightly
over RM2 billion, driven by a two per cent increase in net interest
income to RM1.25 billion, and a 34 per cent jump in
Islamic banking income to RM243 million.

Total
gross loans, advances and financing grew 12 per cent to RM48 billion at
end-2012, due mainly to additional consumer and business loans of RM3.5
billion and RM1.6 billion, respectively.

Total assets grew 13 per cent to RM73 billion.

"OCBC
Malaysia remains committed to its long-term diversification strategy to
build a more balanced portfolio of customers and will continue to
invest in activities to deliver a differentiated experience for our
customers," its director and chief executive officer, Jeffrey Chew was
quoted as saying in the statement.

He said at present, business
banking contributed about 55 per cent to the top line, followed by 25
per cent from consumer business, with the remaining 20 per cent from
treasury.

"We continue to work towards the more balanced ratio
of 40 per cent for business banking, 40 per cent for the consumer
business and 20 per cent for treasury," he added.

Chew said the
diversification approach, especially into the consumer business, will
result in loans growth percentages in the business banking segment
being less robust than that previously achieved.

"This may also
result in lower spreads on the overall portfolio. But we are
comfortable with this impact in light of the long term diversification
gains," he added.

Meanwhile, OCBC Al-Amin Bank Bhd, OCBC
Malaysia's wholly-owned Islamic banking subsidiary, achieved an
operating profit of RM99 million in its fourth full year of operation,
up 93 per cent over the previous year.

As at end-2012, total assets grew 22 per cent to RM7 billion.

OCBC
Malaysia continued to maintain a strong capital position, with
shareholders' funds strengthening to RM5.3 billion and risk weighted
capital ratio of 17.8 per cent (before dividends) as
at the end of the year.-- Bernama