OCBC: Stable Profit Despite Interest Income Drop
Singapore-based OCBC’s profit remained relatively flat diversified streams of revenue offsetting a drop in interest income.
OCBC registered a net profit of S$7.4 billion ($5.9 billion) in 2025, down 2 percent year-on-year from the record S$7.6 billion in 2024, according to the bank’s financial results.
Income reached an all-time high of S$14.6 billion as lower net interest income was more than offset by a 16 percent increase in non-interest income with growth across the board in fees and commissions, trading as well as life and general insurance. Operating expenses rose 2 percent to S$5.9 billion, mainly from higher staff and IT-related costs.
«The Next Frontier»
According to OCBC CEO Tan Teck Long, who succeeded Helen Wong on January 1, the bank closed its previous three-year strategy and «achieved commendable progress» by unifying its brand across core markets and realizing stronger synergies under a one-group approach.
It has now launched its new strategy called «The Next Frontier» and announced plans, including stable to improving return on equity driven by a stronger focus on high-returning businesses alongside the maintenance of cost discipline with the goal of attaining a cost-income ratio in the low to mid 40 percent range.
«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,» Tan commented.
«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.»
