Brief Introduction:

Headquartered in Singapore, Oversea-Chinese Banking Corporation Limited (SGX: O32), or OCBC, operates a network of nearly 400 branches and representative offices across 19 countries and regions. It is Singapore’s longest-established bank, formed through the merger of three local banks, the oldest of which dates back to 1912.

Today, OCBC is the second-largest financial services group in Southeast Asia by assets, offering a comprehensive suite of services spanning consumer, corporate, investment, private and transaction banking, as well as treasury, insurance, asset management, and stockbroking.

Its private banking arm operates under Bank of Singapore, while its insurance business is conducted through its 93.7%-owned subsidiary, Great Eastern Holdings Limited (SGX: G07). Asset management services are provided by Lion Global Investors, and stockbroking services by OCBC Securities.

The bank has also consistently been recognised among the World’s Top 50 Safest Banks by Global Finance, and has earned the title of Best Managed Bank in Singapore by The Asian Banker.

Notable Insights from OCBC’s FY2025 Annual Report:

Key Financial Figures:

• Total income climbed to a record S$14.6 billion, underpinned by broad-based strength in non-interest income, which surged 16% to S$5.46 billion. This was driven by a robust 33% increase in wealth management fees to a new high, alongside double-digit growth in trading and insurance income. The strong performance more than offset the decline in net interest income amid significantly lower benchmark borrowing rates. Meanwhile, loan growth remained resilient at 9% on a constant currency basis, supported by both corporate and consumer segments across the Group’s key regional and international markets.

• From a geographical perspective, the bulk of OCBC’s total income is generated from Singapore, which accounts for 59%. This is followed by Greater China at 14%, Malaysia at 13%, Indonesia at 7%, the Rest of the World at 5%, and Other Asia Pacific at 2%.

• Profit before tax rose 2% year-on-year to a new high of S$9.12 billion, in line with the record total income achieved.

• Net profit edged down 2% to S$7.42 billion, mainly due to higher tax expenses arising from a greater contribution of earnings from higher-tax jurisdictions, as well as the implementation of BEPS Pillar Two, which mandates a minimum global tax rate of 15% from 1 January 2025.

• Total dividends for FY2025 stood at 99 cents per share (comprising an interim dividend of 41 cents, a final dividend of 42 cents, and a special dividend of 16 cents). This translates to a payout ratio of 60% – with ordinary dividends aligned to its 50% payout policy, and the special dividend accounting for 10% of FY2025 Group net profit. This translates into a yield of 5.8% based on OCBC’s average share price in 2025.

• Special dividends of 16 cents per share were paid out in both 2024 and 2025, alongside completed share buybacks bringing total capital returned to S$1.7 billion. The bank aims to complete the remaining S$0.8 billion under its S$2.5 billion capital return plan by FY2026.

• Return on Equity remained resilient at 12.6%.

• Common Equity Tier 1 (CET1) Capital Adequacy Ratio (CAR) stood strong at 15.1%.

• Asset quality of the loan portfolio remained solid, with the non-performing loans (NPL) ratio unchanged at 0.9% (stable since mid-2024). Total credit costs improved to 17 basis points (from 19 basis points a year ago), while the non-performing assets coverage ratio remained robust at 151%.

Navigating through Uncharted Waters:

• The current geopolitical and macroeconomic landscape is  unprecedented, bringing about significant uncertainty and volatility. At the same time, rapid technological advancements are reshaping competitive dynamics, presenting both opportunities and challenges in how the bank innovates and engages with the market.

• Despite these headwinds, OCBC’s well-diversified business segments and geographic footprint position it strongly to adapt. The bank benefits from a substantial presence in the fast-growing Southeast Asia region, a solid foothold in Greater China, private banking operations across Singapore, Hong Kong, and Dubai, as well as offices in the United States, United Kingdom, and Australia. This enables it to respond nimbly to evolving trade and investment flows arising from ongoing geopolitical and macroeconomic shifts.

Completing its ‘One Group’ Strategy and Preparing for ‘The Next Frontier’:

• Since 2022, OCBC has been executing a corporate strategy centred on strengthening its core franchises, deepening customer relationships, and building an integrated ‘One Group’ platform. These efforts have enabled the bank to deliver consistent performance, manage risks prudently, and stay closely connected with its customers through periods of uncertainty.

• As the strategy enters its final phase, management is confident that strong foundations have been firmly established.

• Looking ahead, OCBC has refreshed its corporate strategy to reflect an increasingly complex, digital, and interconnected world, driven by rapid technological advancements, particularly in AI, alongside evolving customer expectations and a fast-changing business environment.

• The updated strategy is also anchored on key megatrends shaping the banking landscape, including heightened geopolitical tensions impacting trade and investment flows, demographic shifts redefining customer needs, the continued rise of Asian wealth, and the growing urgency of sustainability and climate transition.

• The new strategic framework is built around 4 key pillars:
  
  (i) Asia shift – Deepening the bank’s focus on Asia as a core growth engine, while strengthening regional connectivity by capturing ASEAN–Greater China trade, investment, and wealth flows, leveraging OCBC’s network and its ‘ONE-ASEAN’ value proposition.
  
  (ii) Tech shift – Driving growth through enhanced customer-centricity powered by AI, digital, and data (ADD) capabilities, while tapping opportunities arising from the build-out of digital infrastructure and accelerated technological adoption.
  
  (iii) Net Zero shift – Supporting the transition to a low-carbon economy by expanding exposure to green sectors such as renewables and transition industries, while also strengthening support for SMEs in their sustainability journey.
  
  (iv) Franchise shift – Enhancing scale and positioning in core markets and customer segments through initiatives such as the Singapore–Hong Kong Twin Hubs to deliver a comprehensive “Whole-of-Wealth” proposition across banking, wealth, and insurance. This also includes expanding its affluent customer base in ASEAN markets, leveraging Great Eastern’s ecosystem in Malaysia, capturing inbound investment flows through initiatives like the Johor-Singapore Special Economic Zone (SEZ), and growing OCBC Private Bank’s presence in Indonesia.

Staying the Course & Expanding its Reach:

• OCBC has entered into a Memorandum of Understanding with the UK Government’s Office for Investment to support cross-border investments. Under this partnership, the bank aims to channel up to S$17 billion in financing into key UK sectors by 2030, including energy transition, infrastructure, data centres, and real estate. The collaboration also enables OCBC to assist UK companies in expanding into Singapore and the wider Southeast Asian region.
  
• In support of growth within the Johor-Singapore Special Economic Zone (SEZ), OCBC has committed more than RM15 billion in financing to businesses in Johor within a span of less than 2 years. This has facilitated investments across manufacturing, real estate, and data centres, while also strengthening cross-border supply chains and regional expansion efforts.

Innovating to Create Long-Term Value:

• OCBC has deployed agentic AI within Bank of Singapore to automate the preparation of source-of-wealth reports, significantly reducing turnaround time from 10 days to just 1 hour. This enables relationship managers to onboard clients and conduct periodic reviews more efficiently.

• The bank has introduced secure in-app calling features across its consumer and business banking platforms, allowing customers to connect seamlessly at the point of need, while eliminating IDD charges and enhancing protection against scams.

• Its payments ecosystem has been further expanded, enabling customers to link to more than 10 payment wallets, thereby streamlining both domestic and cross-border transactions.

• OCBC has also become the first bank in Singapore to issue bespoke tokenised bonds via its Asset Tokenisation Platform, leveraging its existing blockchain infrastructure.

• The bank continues to deepen its research into quantum technologies through collaborations with NUS, NTU, and SMU, exploring applications in areas such as derivatives pricing, data security, and fraud detection.

• In addition, OCBC has established a presence in the Punggol Digital District, providing a strong platform for collaboration, digital talent development, and experimentation, while supporting the next phase of its transformation journey.

Outlook Ahead:

• The outlook for 2026 remains uncertain amid ongoing geopolitical tensions. Nonetheless, OCBC’s core markets have shown resilience, and management remains confident in their longer-term prospects.

• Looking forward, the operating landscape will continue to be shaped by digitalisation, evolving trade dynamics, and the increasing convergence of finance, technology, and sustainability – with OCBC entering its “Next Frontier” from a position of strength.

• The bank remains committed to building a trusted, innovative, and resilient franchise, with a focus on delivering sustainable long-term value for its customers, communities, and shareholders.

Details of OCBC’s 89th AGM:

Date: Thursday, 16 April 2026
Time: 2.00pm
Venue: Sands Expo & Convention Centre, Level 4, Roselle & Simpor Ballrooms, 10 Bayfront Avenue, Singapore 018956

The meeting will be held in a wholly physical format, with no options for shareholders to attend virtually.

If you have any questions relating to the bank’s annual report, you may raise them in-person during the meeting, or submit them via email to OCBCAGM2026@ocbc.com before 5pm on 06 April 2026.

Closing Thoughts:

OCBC delivered a strong set of financial results, with several key metrics reaching new highs – its total income hit a record level, supported by all-time high wealth management fees, which in turn lifted profit before tax to a new peak.

Return on equity remained steady at 12.6%, while asset quality continued to be robust, with the non-performing loans ratio holding firm at 0.9% – the lowest among the 3 Singapore-listed banks.

The only minor drawback was a slight 2% year-on-year dip in total dividend payout to 99.0 cents per share (from 101.0 cents previously), largely due to a lower interim dividend of 41.0 cents per share compared to 44.0 cents a year ago. However, investors can look forward to another special dividend of 16.0 cents per share when the bank reports its FY2026 full-year results early next year.

Looking ahead, the new CEO, Mr Tan Teck Long, has outlined a forward-looking strategy, ‘The New Frontier’, anchored on 4 key pillars: Asia, Technology, Net Zero, and Franchise. As a shareholder, I am keen to see how these initiatives translate into the bank’s performance in the quarters ahead.

Related Documents:

Annual Report
Notice of AGM
Letter to Shareholders
Proxy Form
Request Form

Disclaimer: At the time of writing, I am a shareholder of Oversea-Banking Corporation Limited.

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