OCBC Posts Steady Third-Quarter Net Profit, Drop in Net Interest Income

By Megan Cheah

Oversea-Chinese Banking Corp.'s net profit held steady in the third quarter from a year earlier, supported by higher noninterest income and lower allowances.

Net profit for the three months ended September was 1.98 billion Singapore dollars, equivalent to US$1.52 billion, edging up from S$1.97 billion in the same period a year ago, Singapore's second-largest lender said Friday.

Total income was flat at S$3.80 billion.

Net interest income--the difference between what banks earn on loans and pay on deposits--declined 9% to S$2.23 billion. Net interest margin narrowed to 1.84%. OCBC attributed that to a softening interest-rate environment.

Non-interest income was 15% higher at S$1.57 billion, thanks to broad-based growth in fee, trading and insurance income.

Total allowances were S$139 million, down 18% from a year ago.

"Looking ahead, the external environment remains complex, shaped by shifting policy dynamics and geopolitical tensions," said OCBC's group chief executive, Helen Wong.

"Our strong balance sheet and robust capital position provides us with flexibility to manage these risks, and enables us to support our customers and invest for future growth."

The results come as the Singapore lender prepares for a leadership transition.

OCBC, Southeast Asia's second-biggest bank by assets, in July picked Tan Teck Long to succeed Wong. Tan, now the deputy CEO, will take over the top job next year.

Analysts had widely expected Singapore banks to post softer earnings in the second half of the year as interest rates decline, pressuring interest margins.

Peers DBS Group and United Overseas Bank both posted lower third-quarter net profits on Thursday.

Write to Megan Cheah at megan.cheah@wsj.com

(END) Dow Jones Newswires

November 06, 2025 18:38 ET (23:38 GMT)