OCBC Malaysia reports record FY19 net profit of RM954m on financial investment gains

  • May 22, 2020
  • The Edge Markets

KUALA LUMPUR (May 22): OCBC Malaysia’s net profit for the financial year ended Dec 31, 2019 (FY19) rose by 17% to a record RM954 million.

OCBC Malaysia attributed the increase to a strong 9% growth in total income, derived largely from higher gains on disposal of financial investments along with stable net interest income.

In a statement today, the bank said currently it remained well capitalised with Common Equity Tier 1 capital ratio of 14.380%, Tier 1 capital ratio of 15.266% and total capital ratio of 17.835%, which is enough to weather the challenges of the Covid-19 pandemic.

“Moving into 2020 and fully cognisant of the implications of Covid-19, we continue to support our customers through the pandemic crisis via the combined strength of our conventional and Islamic banking franchise,” said OCBC Malaysia chief executive officer Datuk Ong Eng Bin in the statement.

“We continue to invest in digital capabilities to widen our offerings and improve customer experience to meet the surge in demand for online services; this disruption in customer banking behaviour will likely have a lasting impact as customers get used to the different way of banking,” he added.

He also said its corporate and commercial banking efforts will continue to focus on supporting its customers’ local and regional business growth by meeting their business expansion needs with the group’s strong regional network, while assisting businesses that are suffering financial hardship after their revenue and cashflow were affected by the pandemic and movement control order (MCO).

Meanwhile, OCBC Al-Amin aims to expand its wealth management business and build its financing book for corporates and SMEs, specifically in terms of value based intermediation in sustainable financing as part of its long-term growth strategy.

The bank added that it will continue to enhance its virtual classroom experience for its employees via the “We See You” platform.

“On the CSR front, we will ride on the momentum created by our various division and branch level efforts in the last few years to fulfil the social needs of the communities where we operate, maintaining our position as a bank that cares. Our initiatives will continue to provide an environment for every employee to volunteer in one way or another,” Ong said.