OCBC Reports 5% Q1 Net Profit Drop to S$1.88 Billion, Beats Estimates

Singapore's second-largest bank, OCBC, reported a 5% decline in net profit to S$1.88 billion for the first quarter of 2025, marking its first year-on-year drop since 2022, primarily due to lower net interest income amid a falling interest rate environment. Despite the profit decline, OCBC's results beat analyst expectations, with net income surpassing the average estimate of S$1.87 billion. The bank's total income rose slightly by 1%, driven by a 10% increase in non-interest income from stronger fees, trading, and insurance, while net interest income fell 4%. OCBC's non-performing loan ratio improved slightly to 0.9%, though total allowances increased by 25% to S$212 million due to heightened macroeconomic uncertainties and changes in credit risk profiles. CEO Helen Wong highlighted ongoing concerns about trade policy shifts and geopolitical risks potentially dampening economic growth in the region. OCBC's quarterly results concluded the earnings season for Singapore's major banks, with UOB reporting flat net profit growth and DBS experiencing a decline due to higher tax expenses.