[SINGAPORE] OCBC’s net profit for the first quarter fell on lower net interest income and higher operating expenses.
Net profit for the three months ended March 31, 2025 stood at S$1.88 billion, compared with S$1.98 billion from the year-ago period, it said on Friday (May 9).
The earnings beat the S$1.86 billion consensus forecast in a Bloomberg survey of five analysts.
It was the last of Singapore’s three lenders – together with UOB and DBS – to release its quarterly results this season.
Net interest income for the quarter fell 4 per cent to S$2.35 billion, due to a falling interest rate environment. Net interest margin was down 23 basis points to 2.04 per cent for the quarter, from 2.27 per cent in the previous corresponding period.
Non-interest income was up 10 per cent to S$1.31 billion, on stronger fees, trading and insurance income.
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The bank’s non-performing loans ratio was 0.9 per cent, down from 1 per cent in the same period a year ago.
Total allowances grew by 25 per cent to S$212 million for the quarter.
Helen Wong, group chief executive officer at OCBC, said: “Looking ahead, the heightened uncertainties brought about by the shifts in trade policies and geopolitical risks are expected to have a dampening effect on overall economic growth in the region.”
Shares of OCBC closed 0.7 per cent or S$0.11 lower to S$16.16 on Thursday, before the announcement.
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