Despite experiencing a slight dip in interest income, Singapore’s OCBC managed to maintain a relatively static profit, thanks to diverse revenue sources.
OCBC recorded a net profit of S$7.4 billion ($5.9 billion) in 2025, marking a 2 percent decrease compared to the previous year’s record of S$7.6 billion. The bank’s income, however, reached an unprecedented level of S$14.6 billion. This rise can be attributed to a 16 percent increase in non-interest income, which was seen across all sectors including fees, commissions, trades, and insurance (both life and general). Operating expenses saw a slight increase of 2 percent, rising to S$5.9 billion, primarily due to increases in staff and IT-related costs.
OCBC CEO Tan Teck Long, who took over from Helen Wong on January 1, acknowledged the bank’s completion of its previous three-year plan, which brought about “commendable progress.” Under this plan, the bank managed to unify its brand across its core markets, leading to enhanced synergies through a unified-group approach.
OCBC has now initiated its new strategy, aptly named “The Next Frontier.” The bank aims to improve return on equity through a stronger focus on high-returning businesses, while maintaining cost discipline. The goal is to achieve a cost-income ratio in the low to mid 40 percent range.
This strategy, according to CEO Tan, equips the bank with the necessary tools to compete and succeed in the next growth phase. This includes tapping into rising Asian markets, enhancing core market franchise, advancing technology-led and customer-centric capabilities through AI, Digital, and Data, and continuing to support green transitions.
Despite geopolitical tensions, evolving trade dynamics, and interest rate uncertainties, Tan remains “cautiously optimistic” about the future. He believes that the bank’s robust balance sheet, prudent risk management, and diversified growth engines will allow it to successfully navigate these challenging conditions and deliver sustainable, long-term value.
What was OCBC’s net profit for 2025?
OCBC recorded a net profit of S$7.4 billion ($5.9 billion) in 2025.
What is OCBC’s new strategy and what does it aim to achieve?
OCBC’s new strategy is titled “The Next Frontier.” It aims to improve return on equity through a stronger focus on high-returning businesses and maintaining cost discipline with a goal to attain a cost-income ratio in the low to mid 40 percent range.
What are the bank’s views on the upcoming market conditions?
CEO Tan Teck Long remains cautiously optimistic about the future. He believes that despite geopolitical tensions, evolving trade dynamics, and interest rate uncertainties, the bank, with its robust balance sheet, prudent risk management, and diversified growth engines, is well positioned to navigate these challenges and deliver sustainable, long-term value.
