Oversea-Chinese Banking Corporation Ltd (SGX: O39), better known as OCBC, is another Singapore-headquartered bank that most of us are familiar with.
What may not be as widely known is that OCBC is the oldest among the 3 local banks (DBS, UOB, and OCBC). It was formed in 1932 through the merger of 3 local banks, the earliest of which dates back to 1912.
Today, OCBC operates more than 400 branches and representative offices across 19 countries and regions, with its core markets in Singapore, Malaysia, Indonesia, and Greater China. By assets, it is the second-largest financial services group in Southeast Asia, and it is also regarded as one of the world’s most highly rated banks, holding an Aa1 rating from Moody’s and AA- ratings from both Fitch and S&P.
Yesterday (06 November) morning, both DBS and UOB released their 3Q and 9M FY2025 business updates, and you can find my reviews via the respective links below (in case you’ve missed it):
DBS: How Did DBS Group Holdings Ltd Fare in 3Q and 9M FY2025?
UOB: My Analysis of United Overseas Bank Ltd’s 3Q and 9M FY2025 Business Update
This morning (07 November), it was OCBC’s turn to do so. The update also marks the final quarterly results presentation by current CEO Ms Helen Wong, who will retire on 31 December 2025. The role will then be passed to Mr Tan Teck Long, currently Deputy CEO (with the appointment announced on 11 July 2025, the day where the news of his upcoming appointment as CEO was released) and Head of Global Wholesale Banking.
In this post, I will be reviewing OCBC’s latest financial figures and key financial ratios:
Financial Figures (3Q FY2024 vs. 3Q FY2025, and 9M FY2024 vs. 9M FY2025)
3Q FY2024 vs. 3Q FY2025:
| 3Q FY2024 | 3Q FY2025 | % Variance | |
| – Net Interest Income (S$’mil) | $2,433m | $2,226m | -8.5% |
| – Net Fee & Commission Income (S$’mil) | $508m | $683m | +34.4% |
| – Other Non-Interest Income (S$’mil) | $861m | $887m | +3.0% |
| Total Income (S$’mil) | $3,802m | $3,796m | -0.2% |
| Total Expenses (S$’mil) | $1,463m | $1,519m | +3.8% |
| Net Profit Attributable to Shareholders (S$’mil) | $1,974m | $1,978m | +0.2% |
Overall, it was a stable set of numbers reported by OCBC for the 3rd quarter – with its total income and net profit attributable to shareholders more or less the same compared to a year ago.
2 areas here to highlight – the first one is the 8.5% year-on-year decline in its net interest income to S$2,226 million, which is due to the 34 basis point contraction in net interest margin (from 2.18% in 3Q FY2024 to 1.84% in 3Q FY2025) amid a softening interest rate environment, partially offset by average asset growth of 9%.
The second one is the 34.4% year-on-year jump in its net fee and commission income to S$683 million, as the bank’s wealth management franchise continued to scale up, with a record wealth management income (which is up by 38.0% from a year ago to S$376 million).
Finally, OCBC’s other non-interest income is also up by 3.0% year on year to S$887 million, which can be attributed to higher trading income, and a strong profit contribution from its insurance business (i.e., Great Eastern).
9M FY2024 vs. 9M FY2025:
| 9M FY2024 | 9M FY2025 | % Variance | |
| – Net Interest Income (S$’mil) | $7,300m | $6,854m | -6.1% |
| – Net Fee & Commission Income (S$’mil) | $1,454m | $1,809m | +24.5% |
| – Other Non-Interest Income (S$’mil) | $2,304m | $2,335m | +1.3% |
| Total Income (S$’mil) | $11,058m | $10,998m | -0.5% |
| Total Expenses (S$’mil) | $4,182m | $4,322m | +3.4% |
| Net Profit Attributable to Shareholders (S$’mil) | $5,900m | $5,677m | -3.8% |
OCBC’s total income for the first 9 months of FY2025 dipped by 0.5% year on year to S$10,998 million, largely attributed to a 6.1% year-on-year decline in its net interest income to S$6,854 million (from a 29 basis point contraction in its net interest margin to 1.93%, from 2.22% a year ago).
Net fee & commission income saw a 24.5% year-on-year surge to S$1,808 million, led by a 35% year-on-year rise in wealth management fees (to S$923 million, a new high for the bank), alongside growth across most fee segments.
Other non-interest income was up by 1.3% year on year to S$2,335 million from higher net trading income (driven by customer flow treasury income), as well as from its insurance income.
Finally, OCBC’s total expenses increased by 3.4% year on year to S$4,322 million, mainly from increased staff costs largely attributable to annual salary adjustments and IT-related costs to support the Group’s business growth.
Key Financial Ratios (2Q FY2025 vs. 3Q FY2025)
In the table below, you’ll find a comparison of OCBC’s net interest margin, return on equity, as well as non-performing loans ratio reported for the current quarter under review (i.e., 3Q FY2025 ended 30 September 2025) against that reported in the previous quarter 3 months ago (i.e., 2Q FY2025 ended 30 June 2025):
| 2Q FY2025 | 3Q FY2025 | Difference (in Percentage Points – pp) | |
| Net Interest Margin (%) | 1.92% | 1.84% | -0.08pp |
| Return on Equity (%) | 12.3% | 13.4% | +1.1pp |
| Non-Performing Loans Ratio (%) | 0.9% | 0.9% | – |
With benchmark lending rates on a downward trajectory, its of little surprise that OCBC’s net interest margin continued to slid – this time by 0.08pp from the previous quarter to 1.84%.
Compared to the previous quarter, non-performing assets saw a slight 0.7% dip to S$2,989 million, with its non-performing loans ratio remaining the same, at 0.9%.
CEO Ms Helen Wong’s Comments & Outlook (from the Bank’s Press Release)
“We delivered a strong set of third quarter results, which underscored the resilience of our diversified banking, wealth management and insurance franchise. Our solid performance this quarter was underpinned by continued growth in customer activities and wealth AUM, which lifted fee and trading income. Insurance also delivered higher profit contribution.
Looking ahead, the external environment remains complex, shaped by shifting policy dynamics and geopolitical tensions. Our strong balance sheet and robust capital position provides us with flexibility to manage these risks, and enables us to support our customers and invest for future growth.”
Closing Thoughts
On the whole, OCBC’s performance for the 3rd quarter, as well as for the first 9 months of FY2025, was a stable one – particularly, its wealth management for both periods are new highs for the bank; the same can also be said for its non-interest income (the sum of its net fee & commission income, along with its other non-interest income) for the first 9 months of FY2025.
Last but not least, just like UOB, the management of OCBC also declares a dividend payout to the shareholders on a half-yearly basis. Therefore, for the current quarter, there isn’t any dividends declared.
This brings me to the end of my post today, where I reviewed the latest business update (for 3Q and 9M FY2025) of Singapore’s longest established bank. While I hope you’ve enjoyed the read, but do take note that all the opinions within are purely mine which I’m sharing for educational purposes only. They do not represent any buy or sell calls for the bank’s shares. You are strongly encouraged to do your own due diligence before making any investment decisions.
Related Documents
Disclaimer: At the time of writing, I am a shareholder of Oversea-Chinese Banking Corporation Limited.
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