OCBC Q2 Profit Falls; Lowers Dividend and Outlook

OCBC, Singapore's second-largest bank, reported a 7% decline in second-quarter 2025 net profit to S$1.82 billion, mainly due to lower net interest income amid a softening rate environment. Despite the fall, profits were in line with or exceeded analyst expectations, supported by a rise in non-interest income from higher fee and trading income. The bank declared an interim dividend of S$0.41 per share for H1 2025, down from S$0.44 a year earlier. OCBC maintained most of its 2025 financial targets but revised its net interest margin forecast down to 1.90-1.95%. Outgoing CEO Helen Wong highlighted ongoing economic and geopolitical challenges, as Tan Teck Long is set to assume the CEO role in January 2026. The bank reiterated confidence in its resilient franchise and balance sheet to navigate current uncertainties.