OCBC profit expected at $1.7b on higher fee and insurance income

Fee income and insurance contribution are expected to have grown during the quarter.

OCBC is expected to report a net profit of S$1.7b for Q4 2025, as well as a special distribution per unit (DPS) of 18 cents for the second half of the year, according to CGS International (CGSI).

The Singapore-headquartered bank is likely to see net interest margins (NIM) decline to 1.8% for the quarter, analysts Tay Wee Kuang and Lim Siew Khee wrote in a report published on 26 January 2026.

This will be offset by non-interest income’s (NOII) expected 28.5% year-on-year (YoY) growth, they added.

Fee income should have continued to see structural growth during the period, Tay and Lim said, alongside a recovery in contribution from its insurance business.

“Meanwhile, we believe mark-to-market gains of investment securities through its insurance business helped the bank better withstand the impact of the lower [quarter-on-quarter] volume-driven fee income,” the report said.

OCBC is CGSI’s top pick in the Singapore banking sector, followed by DBS then UOB.