Oversea-Chinese Banking Corporation ( (OVCHF) ) has released its Q1 earnings. Here is a breakdown of the information Oversea-Chinese Banking Corporation presented to its investors.
Oversea-Chinese Banking Corporation (OCBC) is a leading financial services group in Asia, offering a comprehensive range of banking, wealth management, and insurance services. The company operates primarily in the banking sector, with a strong presence in Singapore and across the region.
OCBC reported a net profit of S$1.88 billion for the first quarter of 2025, marking a 12% increase from the previous quarter, although it was 5% lower than the same period last year. The growth was driven by broad-based increases in fee, trading, and insurance income, alongside a reduction in operating expenses.
Key financial highlights include a 7% increase in total income to S$3.66 billion, with non-interest income rising by 36% quarter-on-quarter. The bank’s cost-to-income ratio improved to 38.7%, and its return on equity rose to 13.0%. Despite a 4% decline in net interest income due to a narrower net interest margin, OCBC maintained strong loan and deposit growth, with customer loans and deposits increasing by 7% and 9% year-on-year, respectively.
OCBC’s asset quality remained robust, with a non-performing loan ratio of 0.9% and total allowances for loans and other assets at S$212 million. The bank’s capital position is solid, with a CET1 CAR of 17.6% under transitional Basel III reforms. Looking ahead, OCBC is prepared to navigate economic uncertainties with a strong balance sheet and capital position, focusing on supporting customers and managing risks effectively.
The management remains cautious about the economic outlook due to geopolitical risks and shifts in trade policies. However, OCBC is well-positioned to manage these challenges, leveraging its diverse banking, wealth management, and insurance operations to sustain growth and stability.