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G07 - Great Eastern Holdings News Story

S$21.05 0.4  2.0%

Last Trade - 15/01/21

Large Cap
Market Cap £5.50bn
Enterprise Value £1.80bn
Revenue £8.99bn
Position in Universe 240th / 6012

UPDATE 1-Singapore's OCBC profit dips as Asian banking outlook dims

Fri 29th April, 2016 1:05am
* Q1 net profit S$856 mln; consensus S$934 mln 
    * Lowest quarterly profit since Q4 2014 
    * Bad debt charges more than doubled to S$167 mln 
 (Adds details on bad debt charges, comments on economy) 
    SINGAPORE, April 29 (Reuters) - Oversea-Chinese Banking Corp 
 OCBC.SI , Singapore's second-biggest lender, posted a 
worse-than-expected 14 percent drop in quarterly profit due to 
an increase in bad debt charges and a lower contribution from 
its insurance unit. 
    The bank said the near-term outlook was uncertain as 
Singaporean lenders struggle with shrinking profits due to 
slowing Asian economies, particularly China, and weak commodity 
prices that have boosted provisions on loans to energy services 
    OCBC's net profit came in at S$856 million in the three 
months ended March, versus S$993 million a year earlier, and 
compared with an average forecast of S$934 million from five 
analysts polled by Reuters. It was the lowest net profit since 
the fourth quarter of 2014. 
    Bad debt charges more than doubled to S$167 million in the 
first quarter from a year earlier, while contributions from 
insurance unit Great Eastern  GELA.SI  dropped 58 percent due to 
mark-to-market losses. 
    The bank said the significant decline in commodity prices 
contributed to the stress in the oil and gas support services 
    Fee and commission income fell 5 percent mainly from lower 
wealth management as well as trade-related and investment 
banking fees, as investment appetite was weak during first half 
of the quarter. 
    Smaller rival United Overseas Bank  UOBH.SI  on Thursday had 
 reported a 4.4 percent fall in first-quarter net profit, in 
line with expectations, after lower wealth management fees and 
trading income hit non-interest income 
 (Reporting by Saeed Azhar; Editing by Stephen Coates) 
 ((; +65-64035664 ; Reuters 
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