OCBC (O39.SG) may rise after it reports 3Q net profit +27% on-year, +13% on-quarter at $570 million, says Dow Jones.

This beats the $548.7 million tipped in Dow Jones poll; with rise in profit mostly due to increase in non-interest income, which is up 59% on-year to $621 million (excluding last year’s $213 million loss on insurance policy redemption, growth more modest at 3.0% on-year).

Investors likely encouraged by rise in net interest income, +10% on-year at $754 million, +5.0% on-quarter due to higher asset volumes, stable margins (NIM improves sequentially to 1.98% vs 1.96% in 2Q); NPLs at 1.1% vs 1.8% year earlier.

Analyst at foreign brokerage, asked not to be named, says “it’s a good set of results, margins improved, loan growth is up 7% on-quarter, NPLs declined and coverage ratios are up...the stock should rally.”

Shares +1.8% at $9.17 at break, 3-year high at $9.27, hit mid-October may cap on upside.