OCBC’s net profit dip 2% to $5.87b on higher tax expenses

OCBC’s net profit dip 2% to $5.87b on higher tax expenses

Oversea-Chinese Banking Corporation (OCBC) logged a net profit of $5.87b (S$7.42b) for 2025, a 2% year-on-year (YoY) dip from the record S$7.59b in 2024, its latest financial results showed.

Profit before tax rose 2% YoY to a new high of $7.21b (S$9.12b) on the back of a record total income and a declining interest rate environment.

Income rose to $11.54b (S$14.6b), lifted by a 16% You non-interest income growth to $4.32b (S$5.46b). However, this was offset by a 6% YoY decline in net interest income to $7.24b (S$9.15b).

Net fee income rose 22% to $1.91b (S$2.41b), with wealth management fees suring 33% thanks to strong contributions particularly from Singapore and Hong Kong.

Net trading income rose 10% to $1.33b (S$1.68b) on record customer flow income, OCBC said.

Insurance income from Great Eastern Holdings grew 17% to $846m (S$1.07b), with net business embedded value (NBEV) rising 19% to $585.09m (S$740m).

Tax expense rose 27% on increased profit contribution from higher tax contributions, OCBC said. The implementation of the Base Erosion and Profit Sharing (BEPS) Pillar 2 required a top-up to 15% of the minimum global tax for each jurisdiction, the bank said.

Operating expenses rose 2% YoY to $4.65b (S$5.88b).

Customer loans rose 9% YoY to S$341b, whilst net interest margin (NIM) fell 29 basis points (bps) to 1.91%.

The non-performing loan (NPL) ratio was unchanged at 0.9%.

CET1 CAR based on transitional final Basel III reforms is 16.9%, whilst fully phased-in final Basel III reforms is at 15.1%, said OCBC.

OCBC has announced a total dividend of 99 Singapore cents, representing a 60% payout ratio.

(US$1 = S$1.26)