OCBC Q1 profit falls 5% to S$1.88 billion; beats expectations
OCBC’s net profit for the first quarter fell on lower net interest income and higher operating expenses.
Net profit for the three months ended March 31, 2025 stood at S$1.88 billion, compared with S$1.98 billion from the year-ago period, it said on Friday (May 9).
The earnings beat the S$1.86 billion consensus forecast in a Bloomberg survey of five analysts.
It was the last of Singapore’s three lenders – together with UOB and DBS – to release its quarterly results this season.
Net interest income for the quarter fell 4 per cent to S$2.35 billion, due to a falling interest rate environment. Net interest margin was down 23 basis points to 2.04 per cent for the quarter, from 2.27 per cent in the previous corresponding period.
Non-interest income was up 10 per cent to S$1.31 billion, on stronger fees, trading and insurance income.
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The bank’s non-performing loans ratio was 0.9 per cent, down from 1 per cent in the same period a year ago.
Total allowances grew by 25 per cent to S$212 million for the quarter.
Helen Wong, group chief executive officer at OCBC, said: “Looking ahead, the heightened uncertainties brought about by the shifts in trade policies and geopolitical risks are expected to have a dampening effect on overall economic growth in the region.”
Shares of OCBC closed 0.7 per cent or S$0.11 lower to S$16.16 on Thursday, before the announcement.
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