Financial Results

OCBC Profits Down In Q2 2025

Amanda Cheesley Deputy Editor 4 August 2025

OCBC Profits Down In Q2 2025

Singapore’s Oversea-Chinese Banking Corporation (OCBC) has released its financial results for the second quarter and first half of 2025, showing a drop in net profit.

Net profit at OCBC fell 7 per cent in the second quarter of 2025, compared with a year ago, reaching S$1.82 billion ($1.4 billion). It was 4 per cent below the prior quarter. 

Net interest income was 6 per cent lower from the previous year, as net interest margin (NIM) narrowed by 28 basis points in a declining interest rate environment, partly cushioned by a 7 per cent growth in average assets, the bank said in a statement. The NIM decline was largely associated with the downward repricing of Singapore and Hong Kong dollar denominated loans, as a result of the significant drop in the benchmark rates this year, which outpaced the reduction in deposit costs. 

Noninterest income was up 5 per cent from the prior year, lifted by a 24 per cent rise in fee income and 6 per cent increase in trading income, which more than offset lower insurance income.  

Operating expenses were 1 per cent above levels seen in the second quarter of 2024, and cost-to-income ratio was 39.1 per cent, compared with 37.8 per cent. 

Total allowances of S$114 million were lower compared with S$144 million a year ago, resulting from a decrease in allowances for impaired assets. 

The bank declared an interim dividend of S$0.41 a share, down from S$0.44 a share the year before.

For the first half of 2025, net profit was down 6 per cent from a year ago and total income fell 1 per cent to S$7.2 billion. Amid a softening interest rate environment, net interest income fell 5 per cent to S$4.63 billion, as a compression in NIM more than offset an 8 per cent rise in average asset volume.  Average asset growth was driven by an increase in loans and other interest-earning high-quality assets which were lower yielding. NIM declined by 25 basis points to 1.98 per cent as the drop in asset yields outpaced the decrease in funding costs. 

The group’s wealth management income, comprising income from private banking, premier private client, premier banking, insurance, asset management and stockbroking, increased 4 per cent to S$2.66 billion. Group wealth management income accounted for 37 per cent of total income, higher than 35 per cent than a year ago. The banking wealth management assets under management expanded by 11 per cent to an all-time high of S$310 billion, driven by both net new money inflows and positive market valuation. 

Cost-to-income ratio was maintained below 40 per cent, and higher credit allowances were set aside in view of the current uncertain operating environment. Asset quality remained benign with a non-performing loan ratio at 0.9 per cent, while allowance coverage for total non-performing assets stood at 156 per cent. The group said it remains committed to the previously-announced S$2.5 billion capital return which includes a special dividend and share buybacks over two years, to be completed in 2026.

“Our first half 2025 results reflected resilient performance across our diversified business franchise. We expanded our loan book and maintained sound asset quality, and delivered broad-based fee income growth,” Helen Wong, group chief executive officer at OCBC, said.

Register for WealthBriefingAsia today

Gain access to regular and exclusive research on the global wealth management sector along with the opportunity to attend industry events such as exclusive invites to Breakfast Briefings and Summits in the major wealth management centres and industry leading awards programmes