My first Publication ocbc_ar17_fullreport_english | Page 139

NET INTEREST INCOME
Average Balance Sheet
2017
Average
Balance
S$ million
Interest earning assets
Loans and advances to non-bank customers
Placements with and loans to banks
Other interest earning assets
Total Interest bearing liabilities
Deposits of non-bank customers
Deposits and balances of banks
Other borrowings
Total
Net interest income/margin (1)
2016
Interest
S$ million Average
Rate
% Average
Balance
S$ million Interest
S$ million Average
Rate
%
225,150
54,616
49,026
328,792 6,845
1,090
1,183
9,118 3.04
2.00
2.41
2.77 206,622
50,596
45,631
302,849 6,527
772
1,069
8,368 3.16
1.52
2.34
2.76
268,235
11,065
28,884
308,184 2,960
142
593
3,695 1.10
1.28
2.05
1.20 247,818
13,252
21,678
282,748 2,723
124
469
3,316 1.10
0.94
2.16
1.17
5,423 1.65 5,052 1.67
Net interest income rose 7% to S$5.42 billion in 2017 from S$5.05 billion a year ago, driven by strong asset growth. The 2 basis points
decline in net interest margin to 1.65%, from 1.67% in 2016 was mainly attributable to lower loan yields which more than offset higher
gapping income from money market activities.
Volume and Rate Analysis
Volume
S$ million
Increase/(decrease) for 2017 over 2016 due to change in:
Rate
S$ million
Net Change
S$ million
Interest income
Loans and advances to non-bank customers
Placements with and loans to banks
Other interest earning assets
Total 584
61
79
724 (248)
260
37
49 336
321
116
773
Interest expense
Deposits of non-bank customers
Deposits and balances of banks
Other borrowings
Total 224
(20)
155
359 21
38
(30)
29 245
18
125
388
Impact on net interest income 365 20 385
Due to change in numbers of days
Net interest income
(1)

(14)
371
Net interest margin is net interest income as a percentage of interest earning assets.
BUILDING ON OUR CORPORATE STRATEGY FOR SUSTAINABLE GROWTH
137