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REFILE-OCBC Q2 profit falls 8 pct, hit by poor result of insurance unit
August 2, 2013 / 12:36 AM / 4 years ago

REFILE-OCBC Q2 profit falls 8 pct, hit by poor result of insurance unit

2 Min Read

(Corrects Reuters stock code to in fourth paragraph)

SINGAPORE, Aug 2 (Reuters) - 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 statement. ($1 = 1.2746 Singapore dollars) (Reporting by Saeed Azhar; Editing by Paul Tait)

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