Oversea-Chinese Banking Corporation Limited (OCBC) has announced a 12% increase in net profit for the first quarter of 2025, reaching S$1.88b. This growth is attributed to broad-based improvements across fees, trading, and insurance income, despite a challenging economic environment. The bank’s cost-to-income ratio improved to 38.7%, reflecting lower operating expenses.
The bank’s total income rose by 7% quarter-on-quarter to S$3.66b, with non-interest income experiencing a significant 36% increase to S$1.31b. This was largely due to heightened customer activity in wealth management, brokerage, and fund management. Insurance income also saw a substantial rise, reaching S$306m, attributed to improved performance and a rebound from previous challenges in the medical insurance sector.
OCBC’s loan and deposit growth remained robust, with customer loans increasing by 7% year-on-year to S$322b and deposits rising by 9% to S$403b. The bank’s non-performing loan ratio stood at 0.9%, indicating stable asset quality.
The bank’s return on equity improved to 13.0%, and earnings per share increased to S$1.68 on an annualised basis. OCBC’s capital and liquidity positions remain strong, with a Common Equity Tier 1 capital adequacy ratio of 17.6% under transitional Basel III reforms.
Looking ahead, OCBC has adopted a cautious approach by setting aside allowances for non-impaired assets, preparing for potential uncertainties in the operating environment.
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