Oversea-Chinese Banking Corporation (O39) Q3 2025 earnings summary

Executive summary

• Net profit for 3Q25 reached S$1.98 billion, up 9% quarter-on-quarter and flat year-over-year, nearly matching the record first quarter of 2024, driven by record non-interest income and robust wealth management performance.

• Wealth management fees grew 53% year-on-year to a new quarterly high, with sustained net new money inflows and record banking AUM.

• Trading and insurance income showed robust growth, and the loan book expanded across key markets.

• Asset quality remained resilient, with NPL ratio stable at 0.9% for six consecutive quarters.

• Diversified business pillars and strategic investments in wealth management and technology underpinned performance.

Financial highlights

• Total income for 3Q25 rose 7% sequentially to S$3.80 billion, with non-interest income up 24% quarter-on-quarter and 15% year-on-year to S$1.57 billion, while net interest income declined 2% quarter-on-quarter and 9% year-on-year to S$2.23 billion as NIM compressed to 1.84%.

• Wealth management income hit a record S$1.62 billion, contributing 43% to group income; banking AUM rose 18% year-on-year to S$336 billion.

• Fee income up 24% year-on-year to S$1.8 billion; trading income up 38% quarter-on-quarter to S$518 million.

• Operating expenses increased 3% year-on-year and 9% quarter-on-quarter to S$1.52 billion; cost-to-income ratio at 39.3%-40.0%.

• Customer loans grew 7% year-on-year to S$327 billion; customer deposits up 11% to S$411 billion, with CASA ratio rising to 50.3%.

Outlook and guidance

• NIM guidance revised to around 1.9% for the year, reflecting ongoing margin pressure from lower rates; 2025 targets include mid-single-digit loan growth, CIR at low 40s, credit costs around 20bps, and 60% total dividend payout ratio with share buybacks.

• Asset growth and non-interest income expected to remain key drivers; single-digit growth targeted.

• Economic growth expected to decelerate in the near term amid a volatile environment, but regional supply chain resilience, energy transition, and digitalisation present opportunities.

• Cautious outlook for 2026 with expectations of slower global growth and persistent geopolitical and trade uncertainties.

• Strong balance sheet and capital position provide flexibility to manage risks and support future growth.