Slowdown in China to hit growth in loans of Oversea-Chinese Banking Corp
The prevailing economic slowdown is expected to affect the ability of Oversea-Chinese Banking Corp (OCBC) in growing its loan business in 2019.
OCBC is the second largest bank by assets in Singapore, and it has reported a growth of 9 percent in customer loans the previous year, i.e., 2018. However, the rate of growth rate is expected to be lower this year due to the ongoing uncertain economic situation in China and globally, said the CEO of OCBC, Samuel Tsein.
Tsien told a leading news agency that, in spite of a slowdown in China, the market is still moving in a positive direction, and we expect the market to provide us opportunities to grow continuously as we were doing in the past.
He further said that he expects the loan growth of the bank lesser when compared to the last year. The last year growth was 9%, and he said that this year expects the growth to be in a middle single-digit somewhere.
Following the home market of the bank, i.e., Singapore, the greater China region was the second-largest contributor to its profit in the previous year. The region was responsible for a total 19% of overall profit before the previous year tax and about a quarter of its total customer loans.
Also, OCBC formulated and came up with the release of earning of three listed banks of Singapore. The lender reported a fall in its net profit last year to approximate 11 percent.
Contrary to OCBC, United Overseas Bank which happens to be its smaller peer announced a rise of 18% in annual net profit on the same day while DBS Group Holdings, which is Singapore’s largest bank stated on Monday that its net profit had increased by 28% compared to the previous year.