OCBC Group reported a net profit of SGD 1.98 billion ($1.43 billion) for 3Q25, up 9% quarter over quarter (QoQ) from SGD 1.82 billion ($1.31 billion) in 2Q25 and unchanged year over year (YoY). Net profit for September 2025 was SGD 5.68 billion ($4.09 billion), down 4% YoY.

Total income rose 7% QoQ to SGD 3.80 billion ($2.74 billion), driven by record non-interest income which offset a decline in net interest income. Wealth management and treasury activity supported stronger fee and trading performance, while insurance delivered a higher contribution. The cost-to-income ratio was 40.0% and credit costs were 16bps annualised. The non-performing loan ratio remained stable at 0.9%. Annualised return on equity increased to 13.4%, and earnings per share rose to SGD 1.72 ($1.24).

Third quarter 2025 performance

3Q25 QoQ performance

Group net profit rose 9% QoQ to SGD 1.98 billion ($1.43 billion), driven by stronger non-interest income which cushioned the impact of lower net interest income.

Net interest income was SGD 2.23 billion ($1.61 billion), 2% lower QoQ. While average assets increased, this was more than offset by an 8bps compression in net interest margin (NIM) to 1.84%. The narrowing of NIM was mainly due to downward repricing of loans as benchmark rates declined in SGD and other currencies, where the moderation in loan yields outpaced the reduction in deposit costs.

Non-interest income grew 24% QoQ to SGD 1.57 billion ($1.13 billion), supported by broad-based growth across fee, trading and insurance income.

• Net fee income increased 18% to SGD 683 million ($492 million), led by a 35% rise in wealth management fees, reflecting strong customer activity across a broad range of products. Loan and trade-related, fund management and brokerage fees were also higher.
• Net trading income was SGD 518 million ($373 million), up 38% QoQ. Customer flow treasury income rose 29% to SGD 373 million ($268 million), supported by both wealth and corporate segments.
• Insurance income from GEH increased 38% to SGD 311 million ($224 million), largely attributable to improved investment performance of its insurance funds. Total weighted new sales increased 3% to SGD 373 million ($268 million) on sustained sales momentum. New business embedded value (NBEV) grew 9% to SGD 182 million ($131 million) and NBEV margin improved to 48.8%.

The Group’s wealth management income — comprising private banking, premier private client, premier banking, insurance, asset management and stockbroking — was SGD 1.62 billion ($1.17 billion), up 25% QoQ. Wealth management income accounted for 43% of total income, compared to 37% in 2Q25. Banking wealth management AUM grew 8% QoQ to a record high of SGD 336 billion ($242 billion), supported by net new money inflows and positive market valuation.

Operating expenses rose 9% QoQ to SGD 1.52 billion ($1.09 billion), largely due to higher staff costs and continued investment in technology.

Total allowances were SGD 139 million ($100 million), up 21% QoQ, mainly attributable to higher allowances for impaired assets. Annualised credit costs were 16bps.

Share of results of associates was SGD 279 million ($201 million), 6% above 2Q25.

3Q25 YoY performance

Group net profit was unchanged YoY at SGD 1.98 billion ($1.43 billion), supported by higher non-interest income and lower allowances.

• Net interest income of SGD 2.23 billion ($1.61 billion) was 9% lower YoY, as NIM contracted by 34bps to 1.84% amid a softer interest rate environment, partly offset by 9% growth in average assets.
• Non-interest income grew 15% YoY to SGD 1.57 billion ($1.13 billion), driven by broad-based fee, trading and insurance income growth.
• Operating expenses increased 4% YoY to SGD 1.52 billion ($1.09 billion), with the cost-to-income ratio at 40.0%.
• Total allowances of SGD 139 million ($100 million) were 18% lower YoY.
• Share of results of associates was SGD 279 million ($201 million).

September 2025 YoY performance

Group net profit was SGD 5.68 billion ($4.09 billion), 4% lower YoY.

Net interest income fell 6% to SGD 6.85 billion ($4.93 billion) amid a lower interest rate environment, as compression in NIM more than offset an 8% increase in average assets. NIM contracted 29bps to 1.93%, as declines in loan yields outpaced reductions in funding costs. The Group also continued to deploy liquidity into high-quality assets which were income-accretive but lower yielding.

Non-interest income rose 10% to SGD 4.14 billion ($2.98 billion).

• Net fee income grew 24% to SGD 1.81 billion ($1.30 billion), led by a 35% rise in wealth management fees alongside growth across most fee segments.
• Net trading income increased 4% to SGD 1.29 billion ($928 million), driven by customer flow treasury income.
• Insurance income improved 3% to SGD 843 million ($607 million).

Operating expenses were SGD 4.32 billion ($3.11 billion), up 3% YoY, mainly due to higher staff costs from annual salary adjustments and IT-related investments to support business growth. CIR was 39.3%, compared with 37.8% a year ago.

Share of results of associates was SGD 816 million ($587 million), 9% higher YoY.

Total allowances were 4% lower YoY at SGD 466 million ($336 million), mainly due to reduced allowances for impaired assets.

On an annualised basis, Group ROE was 12.9%. EPS was SGD 1.67 ($1.20), 4% lower YoY.

Asset quality and allowances

Allowances

Total allowances for 9M25 declined 4% YoY to SGD 466 million ($336 million), and comprised:

• Allowances for non-impaired assets of SGD 167 million ($120 million), which included additional allowances set aside to cater for increased macroeconomic uncertainties during the year; and
• Allowances for impaired assets of SGD 299 million ($215 million), which were lower than the SGD 371 million ($267 million) a year ago.

Total allowances of SGD 139 million ($100 million) for 3Q25 were largely from allowances for impaired assets.

On an annualised basis, total credit costs for 9M25 were 17 basis points, unchanged from a year ago.

Strong funding, liquidity and capital position

Customer loans were SGD 327 billion ($235 billion) as at 30 September 2025, up 7% year-on-year and 1% quarter-on-quarter.

• The YoY loan growth was broad-based across both consumer and corporate loans, led by the transport, storage and communication sector. By geography, growth was underpinned by Singapore, Malaysia as well as the Group’s international markets including the United Kingdom, United States and Europe.
• Sustainable financing loans increased 17% from a year ago to SGD 55.0 billion ($39.6 billion), and accounted for 17% of total customer loans; total commitments reached SGD 75.8 billion ($54.6 billion) as at 30 September 2025.

Customer deposits rose 11% from a year ago, mainly driven by growth in CASA deposits from both corporate and consumer segments, with the CASA ratio rising to above 50%.

The loans-to-deposits ratio was 78.6%, largely unchanged from the prior quarter.

The Group is subject to MAS’ final Basel III reforms requirements which came into effect on 1 July 2024, and are being progressively phased in between 1 July 2024 and 1 January 2029. Group CET1 CAR as at 30 September 2025 was 16.9%, and on a fully phased-in basis it was 15.0%.

Message from Helen Wong, group CEO

“We delivered a strong set of third quarter results, which underscored the resilience of our diversified banking, wealth management and insurance franchise. Our solid performance this quarter was underpinned by continued growth in customer activities and wealth AUM, which lifted fee and trading income. Insurance also delivered higher profit contribution.

Looking ahead, the external environment remains complex, shaped by shifting policy dynamics and geopolitical tensions. Our strong balance sheet and robust capital position provides us with flexibility to manage these risks and enables us to support our customers and invest for future growth.”

Re-disseminated by The Asian Banker