OCBC's earnings rise 3% in Q4, while full-year profit dips 2%

OCBC Bank on Feb 25 posted a rise in fourth-quarter profit as non-interest income offset the impact from declining interest rates and allowances were lowered.

- Sheila Chiang Business Correspondent

For 2026, OCBC sees stable to growing total income and slight to moderate decline in net interest income, with the conservative outlook stemming from uncertain market conditions and softening interest rates. ST PHOTO: LIM YAOHUI

(LIM YAOHUI)

Earnings for the quarter ended December 2025 were $1.75 billion, up 3 per cent from a year ago, and beating analysts' estimate of $1.72 billion in a Bloomberg poll.

The bank recommended a final dividend of 42 cents and a special dividend of 16 cents for 2025, as part of its previously announced capital return plan.

The total payout for 2025 amounts to 99 cents, down from 101 cents in 2024.

OCBC group chief executive Tan Teck Long, in his first earnings briefing since taking the helm in January, said that the bank will continue with its 50 per cent ordinary dividend payout policy in 2026 and complete its $2.5 billion capital return plan by the year end.

For its 2026 outlook, the bank sees stable to growing total income and slight to moderate decline in net interest income.

Mr Tan said the conservative outlook stemmed from uncertain market conditions and continued pressure from softening interest rates.

"Currently, the bank's still digesting the effect of NIM (net interest margin) compression, so that is a big uncertainty," he said. "So that's why we are a little bit cautious."

"If we grow our revenue, if we grow our profit, that 50 per cent (payout policy) could actually translate to a higher dividend," he added.

In a statement, he said that the results reflect the strength of the bank's fundamentals and disciplined execution amid a challenging operating environment.