OCBC Q2 profit falls 7% to S$1.82 billion; to pay S$0.41 a share in dividends
The earnings beat the S$1.79 billion consensus forecast by a Bloomberg poll of six analysts
[SINGAPORE] OCBC ’s net profit for the second quarter declined 7 per cent as interest rates fell.
Net profit for the three months ended Jun 30 came in at S$1.82 billion, from S$1.94 billion the year before, the bank said on Friday (Aug 1).
The earnings beat the S$1.79 billion consensus forecast by a Bloomberg poll of six analysts.
OCBC is the first of Singapore’s three local banks to report its quarterly results this season.
The lender declared an interim dividend of S$0.41 a share, down from S$0.44 a share the year before.
Net interest income fell 6 per cent to S$2.28 billion, as net interest margin declined 28 basis points to 1.92 per cent, from 2.2 per cent the previous year.
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Non-interest income rose 5 per cent to S$1.26 billion, on a 24 per cent rise in fee income and a 6 per cent increase in trading income, which more than offset lower insurance income.
The non-performing loan ratio stood at 0.9 per cent, unchanged from the same period last year.
Total allowances fell to S$114 million for the quarter, from S$144 million in the year before.
For the first half, net profit fell 6 per cent year on year to S$3.7 billion. Total income for the period was down 1 per cent at S$7.2 billion, from S$7.26 billion.
Helen Wong, group chief executive officer at OCBC, said: “Our first half 2025 results reflected resilient performance across our diversified business franchise. We expanded our loan book and maintained sound asset quality, and delivered broad-based fee income growth.”
OCBC shares closed 1 per cent or S$0.17 lower at S$16.87 on Thursday.
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