OCBC wealth clients turn defensive amid market volatility as Q3 profit rises 3%
OCBC Bank reported a 3% increase in Q3 net profit to S$2.04 billion, driven by strong customer flow trading income and wealth management fees. Despite this, the bank's insurance arm, Great Eastern, faced challenges due to market volatility and rising interest rates.
Why it matters
The results reflect broader trends of investors shifting toward defensive assets amid global market uncertainty and tech sector volatility.
However, non-interest income is down on the back of weaker investment performance by insurance arm Great Eastern
[SINGAPORE] More of OCBC’s wealth customers shifted towards lower-risk or defensive investment products amid market volatility in the third quarter, helping the bank post record customer flow trading income despite the drag from weaker investment performance at insurance arm Great Eastern.
The bank posted a 3 per cent rise in net profit for Q3 to S$2.04 billion, supported by stronger banking operations, including customer flow trading income and higher wealth management fees.
“We saw volatility in the financial markets, so customers gravitated towards low-risk product or products with a defensive nature, and we continue to capture that... under our customer flow trading income,” said group CEO Tan Teck Long at OCBC’s Q3 results briefing on Friday (Nov 6).
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