OCBC Group has announced a net profit of S$3.70 billion for the first half of 2025, marking a 6% decrease compared to the same period last year. The decline is primarily attributed to a reduction in net interest income, which fell by 5% year-on-year due to a contraction in net interest margins, despite asset growth. Non-interest income, however, saw an 8% increase, bolstered by a robust rise in fee and trading income.
The bank’s cost-to-income ratio remained below 40%, and asset quality was maintained with a non-performing loan ratio of 0.9% and a non-performing asset coverage ratio of 156%. Customer loans and deposits both experienced year-on-year growth, with loans reaching S$325 billion and deposits at S$407 billion. The interim dividend was set at 41 pence per share, reflecting a payout ratio of 50%.
Group Chief Financial Officer Goh Chin Yee highlighted the bank’s balanced franchise, which provides earnings diversification. “Loans and deposits were up year-on-year and quarter-on-quarter, with banking operations income remaining relatively unchanged year-on-year as the drop in net interest income was mostly compensated by a 13% growth in non-interest income,” she stated.
Looking ahead, OCBC’s strong balance sheet, with a Common Equity Tier 1 capital adequacy ratio of 17.0%, positions the bank well to support long-term growth. The bank’s funding, liquidity, and capital ratios remain well above regulatory requirements, ensuring stability in a challenging economic environment.
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