OCBC Profit Slips From Softer Interest Rate Environment
Lower income at OCBC due to a softer interest rate environment led to a profit decrease in the first half of the year.
OCBC’s net profit for the first half of 2025 totalled S$3.7 billion ($2.9 billion), according to the bank’s financial results, down 6 percent compared to the record S$3.9 billion during the same period last year.
Total income was 1 percent lower year-on-year at S$7.2 billion. While non-interest income rose 8 percent to S$2.6 billion due to higher fee and trading income, this was more than offset by a 5 percent drop in net interest income to S$4.6 billion, declining from the peak level a year ago amid a softening interest rate environment. Operating expenses were up 3 percent to S$2.8 billion from salary increments, higher business activity and tech-related costs.
New Era
Last month, OCBC announced that Helen Wong would retire as group CEO at the end of the year due to family reasons and pass the reins to current head of global wholesale banking Tan Teck Long. Wong held the Singapore lender’s top position since April 2021.
«The outlook ahead remains challenging. Evolving trade and monetary policies, and persistent geopolitical tensions are expected to weigh on growth prospects,» Wong commented.
«Despite the uncertainties, OCBC has a strong and resilient franchise. As I prepare to hand over the reins of Group CEO to Teck Long’s capable hands on 1 January 2026, I do so with full confidence. OCBC is well placed for the future with a clear ambition, and we are focused on supporting our customers and capturing growth opportunities across the region to drive long-term value for our stakeholders.»
