Oversea-Chinese Banking Corporation (O39) Q4 2025 earnings summary

Executive summary

• FY2025 profit before tax rose 2% year-over-year to a record SGD 9.12 billion, surpassing SGD 9 billion for the first time, driven by broad-based growth in non-interest income and well-managed expenses.

• Group net profit was SGD 7.42 billion, down 2% from last year due to higher tax expense and profit mix, with EPS at SGD 1.63, down 3% year-over-year.

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

• Record total income, disciplined expense management, and lower allowances drove performance.

• Final dividend of 42 cents and special dividend of 16 cents proposed, with a total FY25 dividend of 99 cents and a 60% payout ratio.

Financial highlights

• Net interest income fell 6% year-over-year to SGD 9.15 billion due to declining rates, partially offset by 8% growth in average assets.

• Non-interest income surged 16% year-over-year to SGD 5.46 billion, with fee income up 22% to SGD 2.41 billion, trading income up 10% to SGD 1.68 billion, and insurance income up 17%.

• Wealth management income rose 14% to SGD 5.6 billion, now 38% of group income.

• Operating expenses up 2% year-over-year; cost-to-income ratio stable at 40%.

• Customer loans grew 9% year-over-year to SGD 341 billion; customer deposits up 10% to SGD 428 billion, with CASA ratio at 50.7%.

Outlook and guidance

• Expect market uncertainty and continued interest rate pressure in 2026.

• Project slight to moderate decline in NII, but aim for stable to growing total income.

• Loan growth expected in mid-single digits; credit costs guided at 20-25 bps.

• Maintain 50% ordinary dividend payout policy; SGD 2.5 billion capital return plan to complete by FY2026.

• Targeting a 14% Group CET1 CAR on a fully phased-in basis.