Oversea-Chinese Banking Corporation (OCBC) posted net profit of 7.42 billion Singapore dollars for the year ended 31 December 2025, down 2 per cent year-on-year, as higher taxes offset a fresh peak in pre-tax earnings driven by resilient fee, trading and insurance income.
Group earnings translated to earnings per share of S$1.63, 3 per cent lower YoY. The board proposed a final ordinary dividend of 42 Singapore cents a share and a special dividend of 16 cents. Together with the interim payout of 41 cents, total dividends for FY25 will reach 99 cents, 2 cents below the prior year, representing a 60 per cent payout of group profit.
Total income edged up 1 per cent to a record S$14.61 billion. Net interest income slipped 6 per cent to S$9.15 billion as funding costs fell more slowly than asset yields, trimming the net interest margin by 29 basis points to 1.91 per cent. That decline was more than offset by a 16 per cent jump in non-interest income to S$5.46 billion, lifted by a 22 per cent rise in fee and commission income, a 10 per cent increase in trading income and a 17 per cent contribution from insurance.
Pre-tax profit reached a new high of S$9.12 billion, up 2 per cent YoY, with segment results showing: • Global Wholesale Banking: S$3.59 billion (+4 per cent). • Global Consumer/Private Banking: S$2.21 billion (+2 per cent). • Global Markets: S$948 million (+67 per cent) as higher asset spreads boosted net interest income. • Insurance: S$1.49 billion (+25 per cent) on stronger life assurance earnings and investment gains. • “Others” posted S$887 million (-44 per cent) after lower treasury contributions.
Asset quality stayed firm with the non-performing loan ratio unchanged at 0.9 per cent. Total allowances fell 4 per cent to S$665 million, keeping credit costs at 17 basis points. The common-equity Tier 1 capital adequacy ratio stood at 16.9 per cent under MAS’s final Basel III reforms, well above regulatory minimums.
OCBC continued to grow its balance sheet despite softer interest rates. Customer loans expanded 9 per cent YoY in constant-currency terms to S$341 billion, supported by corporate, consumer and sustainable-finance lending. Customer deposits climbed 10 per cent to S$428 billion, lifting the current-and-savings-account (CASA) base by 14 per cent and keeping the loan-to-deposit ratio steady at 78.6 per cent.
Looking ahead, the bank has begun executing “The Next Frontier”, its new multi-year strategy aimed at capturing intra-Asia capital flows, deepening core market footholds, and scaling technology-driven, customer-centric capabilities in areas such as artificial intelligence and digital channels. OCBC is also targeting S$2.5 billion in capital returns by FY26 while maintaining an ordinary dividend payout ratio of about 50 per cent and a supplementary 10 per cent special dividend.
Group chief executive Tan Teck Long said the latest results underscore the franchise’s resilience, citing robust banking, wealth management and insurance growth that outweighed pressure from lower interest rates. He noted that geopolitical tensions and rate uncertainty are likely to persist, but expressed confidence that OCBC’s diversified earnings base, strong capital buffers and risk discipline will support sustainable value creation under the new strategy.