Bank posts first quarterly earnings decline since Q1 2022 but still beats analyst forecast

OCBC Bank has maintained its 2025 earnings guidance despite warning of a challenging economic environment and posting a 5 per cent decline in first-quarter earnings.

- Sheila Chiang

Net profit for the three months to March 31 came in at $1.88 billion, down from $1.98 billion a year earlier, mainly on lower net interest income.

The decline—OCBC's first quarterly earnings fall since the first three months of 2022—still beat the $1.86 billion forecast by analysts in a Bloomberg survey.

Total allowances were 25 per cent higher at $212 million as the bank adopted a prudent approach in view of the uncertain operating environment ahead.

OCBC has maintained all its 2025 financial targets, including net interest margin in the region of 2 per cent, mid-single-digit loan growth and credit costs in the range of 20 to 25 basis points, noted chief executive Helen Wong on May 9.

Ms Wong told a results briefing the bank still expects three rate cuts in the US in 2025 but warned that the outlook may change, given market uncertainties.

"If the economic situation is going down, (which means) economic growth is lower, loan growth will be lower as well," she said.

Ms Wong noted earlier that the bank continued to see deposit inflows and loan growth despite the more volatile environment.