OCBC Malaysia reports 17% net profit increase to RM949 million
OCBC Bank (Malaysia) Berhad and its subsidiaries (OCBC Malaysia) today reported a 17% rise in net profit to RM949 million for the financial year ended 31 December 2017. This is the highest ever net profit recorded by OCBC Malaysia.
The increase was attributed mainly to stronger growth in total income, which rose 5% to RM2.46 billion, mainly from growth in net interest income through better management of its liabilities coupled with higher fee income from increased demand for the Bank’s wealth management business.
Profit before tax rose 19% to RM1.27 billion, also the highest ever, resulting from stronger income growth as well as better cost management and lower impairment allowances.
Total gross loans and advances remained at RM68 billion as the Bank rebalanced its portfolio, while deposits from customers grew 4% to RM74 billion, allowing for greater funding flexibility and an improved liquidity position.
Commenting on OCBC Malaysia’s performance in 2017, Chief Executive Officer Dato’ Ong Eng Bin said he was pleased with the Bank’s solid performance after a subdued preceding year.
“We recorded our best profits ever, affirming that the challenges we faced last year are behind us and the industry as a whole as well. Our growth is also a testament to our ongoing philosophy of ensuring sustainability in all that we do, rather than going for quick gains that could be detrimental to the Bank and customers in the long run.
“For 2018, we are poised to continue growing steadily whilst maintaining a keen eye on the delivery quality of our products and services which is ultimately key to benefitting our customers,” he said.
Last year, OCBC Malaysia was accorded the Aon Hewitt Best Employers Award for Malaysia, as well as the Top Direct Debit Acquirer award from Malaysian Electronic Clearing Corporation (MyClear).
Among other notable achievements was the Bank’s introduction of AutoROME, a paperless deposit account opening system to improve customers’ experience of its services, alongside other digital capability investments. These included Financial Vital Scan, a financial health check tool to help customers assess their financial standing and needs; and the Wealth Insights App which provides Premier Relationship Managers easier access to market insights to enable them to have more informed conversations with the Bank’s customers.
OCBC Malaysia maintained its foothold in the small-to-medium segment and continued to leverage on its collaboration with Credit Guarantee Corporation Malaysia (CGC) to make available financing facilities to the business community through Cash Management and Foreign Exchange solutions. On the Business Banking front, OCBC Malaysia introduced a business banking mobile app that uses biometric authentication, the first for corporates in the country.
Moving into 2018, Dato’ Ong said OCBC Malaysia will continue to uphold its position as a banker of choice and among the very top foreign banks in the country with the combined strength of its conventional and Islamic banking franchise as well as in the areas of managing risks and rolling out of new products and services for consumers. It will also continue to invest in and strengthen its digital capabilities.
For corporate and commercial banking customers, Dato’ Ong said the Bank will look to intensify its deposit-building strategies via all channels in business banking, particularly the small to mid-medium-sized market and the emerging business segment.