Oversea-Chinese Banking Corporation has reported 4QFY2025 earnings of $1.745 billion, an increase of 3% y-o-y, bringing full-year earnings to $7.42 billion, down 2%. Total income for the year reached $14.6 billion, up 1% from FY2024.
Net interest income for the year was down 6% to $9.15 billion while non-interest income was up 16% to $5.46 billion.
"Wealth management income reached record levels, and we sustained healthy loan growth and maintained strong asset quality," says group CEO Tan Teck Long.
"These results reflect the strength of our fundamentals and our disciplined execution amid a challenging operating environment," says Tan, as he delivers his first full-year report card.
Besides a final dividend of 42 cents, the bank plans to pay a special dividend of 16 cents, which is drawn from the $2.5 billion capital return plan targeted for completion by FY2026.
Taking into account the interim dividend of 41 cents already paid, OCBC's FY2025 total payout will be 99 cents, equivalent to a payout ratio of 60%.
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For the whole of FY2024, the bank paid a total of $1.01 per share, also at a payout ratio of 60%.
In contrast to the other banks, OCBC is reporting total allowances of $665 million for FY2025, down 4%, mainly due to lower allowances for non-impaired assets.
Most recently, for its 4QFY2025, the bank impaired $236 million, mainly for two corporate real estate accounts, but also wrote back $36 million.
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With the "One Group" corporate strategy introduced under Tan's predecessor Helen Wong achieving "commendable progress", the bank is launching a new multi-year dubbed "The Next Frontier."
"This strategy positions us to compete and win in the next phase of growth by capturing rising Asia flows, deepening our core market franchise, advancing technology led and customer centric capabilities through AI, Digital and Data, and continuing our support for green transition," says Tan.
"Looking ahead, we remain cautious yet positive," he says, adding that global conditions are likely to remain uncertain, with evolving trade dynamics and interest rate uncertainty.
"Against this backdrop, our strong balance sheet, prudent risk management and diversified growth engines position us well to navigate the challenging environment and deliver sustainable long term value," says Tan.
