Singapore, 25 February 2026 – Oversea-Chinese Banking Corporation Limited (OCBC) reported net profit of SGD 7.42 billion ($5.49 billion) for the full year of 2025 (FY25), which was 2% below the record SGD 7.59 billion ($5.62 billion) in the previous year (FY24). Profit before tax rose 2% to a new high of SGD 9.12 billion ($6.75 billion), supported by record total income amid a declining interest rate environment, reflecting the strength of the Group’s diversified income streams. Tax expense was 27% higher mainly due to increased profit contribution from higher tax jurisdictions, and implementation of the Base Erosion and Profit Shifting (BEPS) Pillar Two which requires a top-up to 15% minimum global tax for each jurisdiction.

OCBC delivered record income of SGD 14.6 billion ($10.80 billion), driven by 16% non-interest income growth, which more than offset the lower net interest income. Operating expenses were well managed with cost-to-income (CIR) ratio remaining at 40%, as the Group continued to invest for strategic growth while exercising discipline in discretionary spending. Asset quality continued to be stable with non-performing loan (NPL) ratio at 0.9% for the seventh quarter. Total credit costs were lower at 17 basis points, while allowance coverage for non-performing assets stood at 151%.

Supported by the Group’s robust financial performance and in line with the announced SGD 2.5 billion ($1.85 billion) capital return plan, the Board has proposed a final ordinary dividend of 42 cents and special dividend of 16 cents per share for FY25. Together with the interim dividend of 41 cents declared for the first half of 2025, total dividends for FY25 will amount to 99 cents per share and representing 60% of Group net profit. The capital return plan is targeted to be completed by FY26.

FY25 Year-on-Year Performance

Group net profit was 2% lower at SGD 7.42 billion ($5.49 billion). Profit before tax was 2% higher at SGD 9.12 billion ($6.75 billion), driven by record income and lower allowances.

Net interest income was SGD 9.15 billion ($6.77 billion), 6% lower than the previous year, as asset yields fell faster than funding costs due to steep declines in key benchmark rates. This was moderated by a 7% growth in average customer loans and an increase in high-quality assets as the Group continued to deploy excess liquidity to income-accretive non-commercial assets.

Non-interest income rose 16% to SGD 5.46 billion ($4.04 billion), driven by double-digit growth across fee, trading and insurance income:

Net fee income climbed 22% to SGD 2.41 billion ($1.78 billion) lifted by broad-based growth. Notably, wealth management fees surged 33% with strong contribution across all wealth product channels and regions, in particular Singapore and Hong Kong, and accounted for more than half of net fee income.

Net trading income rose 10% to SGD 1.68 billion ($1.24 billion), from SGD 1.54 billion ($1.14 billion) a year ago, driven by record customer flow income. The strong growth was contributed by both wealth and corporate segments, with continued momentum in wealth investments and growing demand by corporate customers to hedge against market uncertainties.

Insurance income from Great Eastern Holdings (GEH) grew 17% to SGD 1.07 billion ($0.79 billion), driven by strong performance in the underlying insurance business. New business embedded value (NBEV) rose 19% to SGD 740 million ($548 million), attributed to sustained sales performance and improved product mix, driving improvement in overall NBEV margin to 48.2% compared to 34.6% a year ago.

The Group’s wealth management (WM) income, comprising income from private banking, premier private client, premier banking, insurance, asset management and stockbroking, grew 14% to a record SGD 5.60 billion ($4.14 billion), lifted by income growth across the wealth continuum. Group WM income accounted for 38% of total income, a notch higher than prior year’s 34%. Banking WM AUM rose 15% to a new high of SGD 343 billion ($253.82 billion), driven by net new money inflows from all wealth segments, as well as positive market valuation.

Operating expenses were SGD 5.88 billion ($4.35 billion), up 2% from a year ago, mainly attributed to higher staff costs and IT-related expenses. The higher staff costs were in line with the growth in variable compensation associated with increased business activities and annual salary increments. Expense growth was well controlled as the Group continued its strategic investments in talent and technology to support growth and raise productivity, while exercising strong discipline in discretionary expenses. CIR was 40.2% for FY25, compared to 39.7% in the previous year.

Total allowances declined 4% to SGD 665 million ($492 million), mainly due to lower allowances for non-impaired assets. Credit costs were lower at 17 basis points of loans, compared to 19 basis points a year ago.

Share of results of associates rose 8% to SGD 1.08 billion ($799 million), from SGD 994 million ($736 million) in the preceding year.

The Group’s ROE was lower at 12.6%, while EPS was SGD 1.63 ($1.21).

Asset Quality and Allowances

As at 31 December 2025, total NPAs were SGD 3.24 billion ($2.40 billion), up 13% from a year ago.

Against the previous quarter, NPAs were 9% higher, mainly due to lower net recoveries, upgrades and write-offs. New corporate NPA formation was relatively stable at SGD 399 million ($295 million) as compared to SGD 349 million ($258 million) a quarter ago.

NPL ratio remained unchanged at 0.9%, and total NPA coverage stood at 151%.

For FY25, total allowances were 4% lower at SGD 665 million ($492 million), and credit costs declined to 17 basis points from 19 basis points a year ago.

4Q25 total allowances were SGD 200 million ($148 million), and comprised mainly:

Allowances for impaired assets of SGD 236 million ($175 million), set aside largely for two corporate real estate accounts.

Write-back in allowances for non-impaired assets of SGD 36 million ($27 million), primarily due to migration to allowances for impaired assets, and adjustments for changes in macroeconomic variables, partly offset by changes in exposures and risk profiles.

Strong Funding, Liquidity and Capital Position

Customer loan growth remained resilient. Loans grew 9% from a year ago to SGD 341 billion ($252.34 billion) as at 31 December 2025 on a constant currency basis. Against the previous quarter, loans were 4% higher supported by growth across all key regional and international markets.

This was in line with the Group’s strategic drive to capture opportunities in key growth sectors such as sustainable financing, TMT including digital infrastructure, transport, and Singapore residential mortgages.

Sustainable financing loan portfolio expanded 13% from a year ago to SGD 56.5 billion ($41.81 billion) and made up 17% of Group loans, while total commitments stood at SGD 80.0 billion ($59.20 billion).

Customer deposits rose 10% to SGD 428 billion ($316.72 billion) from a year ago, mainly driven by CASA deposit growth across consumer, SME and corporate segments.

The Group’s CET1 CAR as at 31 December 2025 was 16.9%, and on a fully phased-in basis, it was 15.1%.

Dividend

Total payout will amount to SGD 4.45 billion ($3.29 billion), which is in line with the Group’s target payout ratio of 50% for ordinary dividend and 10% for special dividend for FY25.

The SGD 2.5 billion ($1.85 billion) capital return plan is targeted to be completed by FY26.

Message from Group CEO, Tan Teck Long

“I am pleased to report that the Group delivered another year of strong performance, demonstrating the resilience of our franchise. Profit before tax surpassed SGD 9 billion ($6.66 billion) for the first time, driven by robust growth across our Banking, Wealth Management and Insurance businesses. Wealth management income reached record levels, and we sustained healthy loan growth and maintained strong asset quality. These results reflect the strength of our fundamentals and our disciplined execution amid a challenging operating environment.

As we close out our previous three-year strategy, during which we achieved commendable progress by unifying our brand across our core markets and realising stronger synergies under our One Group approach, we have launched our new corporate strategy, The Next Frontier. This strategy positions us to compete and win in the next phase of growth by capturing rising Asia flows, deepening our core market franchise, advancing technology led and customer centric capabilities through AI, Digital and Data, and continuing our support for green transition.

Looking ahead, we remain cautious yet positive. Global conditions are likely to remain uncertain, shaped by geopolitical tensions, evolving trade dynamics and interest rate uncertainty. Against this backdrop, our strong balance sheet, prudent risk management and diversified growth engines position us well to navigate the challenging environment and deliver sustainable long term value.”

Re-disseminated by The Asian Banker