OCBC posts record profit, plans $2.5b capital return

2024 earnings hit $7.59b, but Q4 bottom line misses analysts' estimate

- Sheila Chiang

OCBC Bank on Feb 26 announced it will return $2.5 billion of capital to shareholders over two years via special dividends and share buy-backs, as the bank delivered a record profit of $7.59 billion for 2024.

OCBC plans to pay a final ordinary dividend of 41 cents per share for 2024, down from 42 cents in 2023. Including the interim dividend, total ordinary dividend for 2024 will be 85 cents per share, higher than the 82 cents for 2023.

The total payout will amount to $3.82 billion, which is in line with the group's target payout ratio of 50 per cent, said OCBC.

It also proposes a special dividend of 16 cents per share, bringing total dividend to $1.01 per share, which represents a total payout ratio of 60 per cent for 2024.

Local peers DBS and UOB have also announced capital returns on the back of record earnings.

UOB on Feb 19 said it is returning $3 billion of surplus capital to shareholders over the next three years and DBS on Feb 10 said it will reward all staff, excluding senior managers, with a special one-time bonus of $1,000 each and plans to introduce a new "capital return" dividend.