OCBC (OCBC.SI), Singapore’s second-biggest bank, posted a forecast beating 24% rise in quarterly profit, lifted by strong fee income and a sharp decline in bad debts.

Oversea-Chinese Banking Corp (OCBC) clocked a net profit of $676 million between Jan-March, compared with $545 million in the year-ago period. Analysts had predicted a net profit of $519 million, according to the average of five forecasts compiled by Reuters. 

 

Singapore banks are forecast to see better earnings in 2010 as loans expand and bad debts decline with the rebound in Asian economies from the downturn last year. 

 

Shares in OCBC are down 7% this year compared with a 5% decline in rival DBS Group (DBSM.SI) and a 0.3% slip for UOB (UOBH.SI). The benchmark Straits Times Index (.FTSTI) has slipped 1.4% this year.