It’s earnings season again. Given many companies have reported their results in the past few weeks, I thought it may be useful to summarise the results of some of these companies in three different buckets – positive, negative, mixed. This will give our readers a quick overview of the performances of these companies. With that, let’s focus on two of those companies that have delivered growth in their latest results.
Oversea-Chinese Banking Corp Limited (SGX: O39) is the first company that we will look at in this article.
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For the third quarter ended 30 September 2018, OCBC reported that total income grew by 5% from a year ago to S$2.5 billion. Net interest income grew 9% year-on-year to S$1.5 billion due to broad-based growth in customer loans and an increase in net interest margin. Non-interest income, on the other hand, was flat at S$1.0 billion. Higher total income resulted in net profit going up by 12% year-on-year to a record S$1.2 billion.
DBS Group Holdings Ltd (SGX: D05) is another company that has announced positive results recently.
For the quarter ended 30 September 2018, DBS saw its income climb 10% from a year ago to S$3.4 billion. Net interest income went up 15% year-on-year to S$2.3 billion, driven by improvements in net interest margin and loan volume growth. Similarly, net fee income increased 1% to S$695 million, led by growth in most areas, but offset by a decline in investment banking fees. As a result, net profit jumped 72% to S$1.4 billion.
DBS’ chief executive, Piyush Gupta, said:
“Third-quarter business momentum was sustained amidst heightened geopolitical and economic headwinds. Year-to-date earnings per share is the highest in our history while return on equity is the best in more than a decade. As we celebrate our fiftieth anniversary, we are pleased to be named Best Bank in the World by Global Finance and World’s Best Digital Bank by Euromoney. We are well positioned to continue capitalising on Asia’s long-term prospects while navigating short-term uncertainties.”
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned. Motley Fool has recommendations for DBS Group Ltd and Oversea-Chinese Banking Corp Limited.