OCBC shares slip at open despite fourth-quarter results beating expectations

Singapore five-dollar note Photo by Leslie Shaffer

OCBC shares slipped 0.24 percent in early trade despite the bank reporting on Wednesday that its fourth-quarter net profit climbed 31 percent on-year to S$1.03 billion.

The relatively muted reaction after the positive results may have been due to the share’s 2.53 percent jump on Tuesday, ahead of the release.

Nomura said the results beat its expectations for S$956 million, driving by an improved interest rate environment and a very strong life assurance business, which saw attributed profit from Great Eastern grow 80 percent on-year.

”OCBC produced another quarter of good results, largely driven by the benign interest rate environment and their outstanding life assurance business,” Nomura said in the report on Wednesday.

For the full year, OCBC said its net profit rose 19 percent to S$4.15 billion, adding that its the first time the bank’s earnings topped the S$4 billion mark.

Singapore five-dollar note
Photo by Leslie Shaffer