(Corrects Reuters stock code to in fourth paragraph)
SINGAPORE Aug 2 Oversea-Chinese Banking Corp
, Singapore's second-biggest bank, posted an 8 percent
drop in quarterly profit, a below-forecast result after it was
hit by lower contributions from its insurance unit.
OCBC earned S$597 million ($468.40 million) in the three
months ending in June, compared with S$648 million a year
earlier. The profit was below the S$643 million average forecast
of six analysts polled by Reuters.
The poll was taken before OCBC's insurance unit Great
Eastern Holdings posted a 77 percent drop in quarterly profit
after it was hit by the second-quarter market volatility that
drove its non-operating business to a loss of S$155.6 million.
OCBC underperformed its domestic rivals DBS Group Holdings
and United Overseas Bank, which both beat
market expectations by posting net profit growth of 10 percent
and 9.9 percent respectively.
"Despite the partial erosion to our earnings in the second
quarter from the unrealised mark-to-market losses at our
subsidiary Great Eastern, the momentum in our customer flow
business remains strong," chief executive Samuel Tsien said in a
($1 = 1.2746 Singapore dollars)
(Reporting by Saeed Azhar; Editing by Paul Tait)