Oversea-Chinese Banking Corporation Limited (OCBC) announced a net profit of S$1.98 billion for the third quarter of 2025, representing a 9% increase from the previous quarter. This figure is unchanged from the same period in 2024. For the first nine months of 2025, net profit totaled S$5.68 billion, which is a 4% decrease compared to the same period last year.
The bank’s total income for the third quarter rose by 7% on a quarterly basis, mainly due to record non-interest income that offset a drop in net interest income. Wealth management and treasury sales contributed to higher fee and trading income, while insurance operations also performed strongly. The cost-to-income ratio was at 40%, and credit costs were reported at 16 basis points on an annualized basis. Asset quality remained steady with a non-performing loan ratio of 0.9%. Return on equity improved to 13.4% and earnings per share increased to S$1.72.
Net interest income for the quarter was S$2.23 billion, down by 2% from the previous quarter as net interest margin narrowed by eight basis points to 1.84%. This was attributed to lower benchmark rates in Singapore dollars and other currencies, which led to lower loan yields despite higher average assets.
Non-interest income grew by 24% from the prior quarter to reach S$1.57 billion, supported by growth across fees, trading, and insurance segments. Net fee income rose by 18% to S$683 million due largely to strong wealth management activity, while net trading income increased by 38% to S$518 million and customer flow treasury income climbed by 29%.
Insurance income grew by 38% during the quarter due in part to better investment performance within insurance funds.
Wealth management income for OCBC reached S$1.62 billion in the third quarter—a rise of 25% over the previous three months—and accounted for nearly half of total group income as assets under management hit a new high of S$336 billion.
Operating expenses increased by 9%, primarily because of higher staff costs and ongoing investments in technology infrastructure.
Total allowances rose by 21%, mainly reflecting higher provisions for impaired assets.
On a year-on-year basis, OCBC’s net profit remained unchanged at S$1.98 billion in the third quarter as higher non-interest earnings and lower allowances compensated for reduced net interest margins caused by softer market rates.
For the nine-month period ending September 30, group net profit fell slightly amid compressed margins but non-interest revenues hit new highs—helped especially by a surge in wealth management fees and growth across most other segments.
As at September’s end, OCBC’s total non-performing assets stood at S$2.99 billion—a slight decline from June but still up compared with last year—while allowance coverage was maintained at a robust level.
Customer loans increased both annually (by about seven percent) and quarterly; sustainable financing loans also saw significant growth over twelve months.
The bank reported that customer deposits had grown substantially over one year, driven largely by increases in current account savings account balances among both corporate and consumer clients.
Group CEO Helen Wong said: “We delivered a strong set of third quarter results, which underscored the resilience of our diversified banking, wealth management and insurance franchise. Our solid performance this quarter was underpinned by continued growth in customer activities and wealth AUM, which lifted fee and trading income. Insurance also delivered higher profit contribution."
She added: "Looking ahead, the external environment remains complex, shaped by shifting policy dynamics and geopolitical tensions. Our strong balance sheet and robust capital position provides us with flexibility to manage these risks, and enables us to support our customers and invest for future growth.”