Oversea-Chinese Banking Corporation, which recently created the new wealth manager Bank of Singapore after purchasing the business from ING, said today its 2009 group net profit rose by 12 per cent year-on-year to S$1.962 billion (around $1.39 billion).

Operating profit before allowances increased by 26 per cent to S$3.019 billion, underpinned by a recovery in insurance income and strong trading results which lifted non-interest income by 37 per cent, as well as a 3 per cent reduction in operating expenses.

For the fourth quarter of 2009, net profit rose 67 per cent year-on-year to S$502 million. Excluding the S$51 million tax refunds in the fourth quarter of 2008, core net profit grew 101 per cent, contributed by significantly stronger non-interest income and reduced allowances. Compared to 3Q09, net profit was 12 per cent higher.

OCBC Group’s Tier 1 capital adequacy ratio stood at 15.9 per cent at the end of the reporting period.

The bank is one of the oldest in Asia, being started in 1912.

In late January, OCBC completed the acquisition of Singapore-based ING Asia Private Bank and its subsidiaries for around $1.446 billion, changing its name to Bank of Singapore. BOS will be led by Renato de Guzman, the chief executive of the former IAPB. The private banking businesses of IAPB and OCBC Bank will be combined and operate as Bank of Singapore.

The deal creates one of Asia's largest private banks, with more than 7,000 clients and total private client assets under management of approximately $23 billion. It will also be the only dedicated private bank that is headquartered in Singapore.