SINGAPORE – OCBC Bank posted on Wednesday record first-quarter earnings from higher interest rates, even as its chief executive cautioned that tighter financial conditions might slow global economic growth and elevate overall risks.

Singapore’s second-largest lender saw its net profit rise 39 per cent year on year to $1.88 billion, beating the $1.74 billion estimate by analysts in a Refinitiv poll.

OCBC’s net interest income rose 56 per cent to $2.34 billion amid a 5 per cent growth in average asset balances. Net interest margin (NIM) – a key gauge of a lender’s profitability – shot up by 75 basis points to 2.3 per cent following the US Federal Reserve’s series of interest rate hikes.