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OCBC Bank Trims 2025 Outlook After Q2 Profit Dip
1 Aug
Summary
- OCBC cuts 2025 net interest income outlook
- Q2 profit falls 7% but beats estimates
- Non-interest income remains strong, wealth unit grows
On August 1st, 2025, OCBC Bank, Singapore's second-largest financial institution, announced that it has cut its 2025 net interest income outlook after posting a decline in its second-quarter net profit. The bank's net profit for the June quarter fell 7% to S$1.82 billion, but this was slightly higher than the Bloomberg consensus estimate of S$1.78 billion.
The profit drop was primarily driven by a 6% year-on-year decrease in net interest income, which fell to S$2.28 billion. OCBC cited headwinds from global trade disruptions and a recent drop in interest rates, which weighed on its lending margins. As a result, the bank now expects its 2025 net interest income to decline by a mid-single-digit percentage, with its net interest margin expected to range between 1.90% and 1.95%, down from prior estimates of 2%.
However, OCBC's non-interest income remained strong, with robust revenue from fees and its trading desk. The bank's wealth management unit also saw its assets under management surge to a record high. Despite the challenges, OCBC maintained its other 2025 financial targets.
The lender declared an interim dividend of 41 Singapore cents per share for the quarter.
