OCBC Bank reported first-quarter 2025 net profit of SGD 1.88 billion, a 5% decline from SGD 1.98 billion a year earlier (though up 12% on the previous quarter), while still beating analyst consensus estimates, the Singaporean lender announced on 9 May 2025.
Net interest margin compressed by 23 basis points year on year to reach 2.04%. That margin compression pushed net interest income down 4% year on year to SGD 2.35 billion. Higher non-interest income offset part of that shortfall, but operating expenses and allowances both rose from a year earlier.
NON-INTEREST INCOME AND EXPENSES
Non-interest income advanced 10% year on year to SGD 1.31 billion in the first quarter, driven by wealth management fees, brokerage income, trading revenues and other fee-based activities. Total income edged up 1% year on year to SGD 3.66 billion.
Operating expenses rose 5% year on year to SGD 1.42 billion, mainly driven by higher staff costs from annual salary adjustments and volume-related compensation, and continued investments in technology.
PROVISIONS INCREASED AMID GLOBAL TARIFF UNCERTAINTY
OCBC raised provisions during the first quarter in response to the uncertainty generated by global trade policy developments. Total allowances rose 25% year on year to SGD 212 million, including SGD 118 million for non-impaired assets reflecting management overlays for heightened macroeconomic uncertainty; chief executive Helen Wong said the bank had "prudently set aside credit allowances to buffer our portfolio on a forward-looking basis".
The bank's Common Equity Tier 1 capital ratio was 17.6% at the end of March 2025, or 15.5% on a fully phased-in basis.