Oversea-chinese Banking Corporation Limited · SGX:O39
Oversea-chinese Banking — H1 2025 Earnings Presentation
22 slides from Oversea-chinese Banking's earnings presentation, Aug 1, 2025
Slide 1: First Half 2025 Results Presentation
First Half 2025 Results Presentation Goh Chin Yee, Group Chief Financial Officer 1 August 2025 OCBC Financial Results
Slide 2: Agenda
Agenda 01 Financial Highlights 02 Group Performance Trends Notes: - Certain comparative figures have been restated to conform with the current period’s presentation; - Amounts less than S$0.5m are shown as “0”; - “nm” denotes not meaningful; - “na” denotes not applicable; - Figures may not sum to st
Slide 3: Performance highlights: Resilient 1H25 performance
Performance highlights Resilient 1H25 performance YoY Total Income S$7.20b -1% ■ Net profit below last year’s Group -6% YoY record level S$3.70b Net Interest Income (NII) -5% Net Profit Non-Interest Income (Non-II) +8% +18% YoY ■ NII down as NIM contraction Operating Expenses offset asset growth S$2
Slide 4: 1H25 Group net profit down YoY on lower NII
Performance overview 1H25 Group net profit down YoY on lower NII Group Performance Banking Operations Performance (S$m) 1H25 1H24 YoY 1H25 1H24 YoY Net Interest Income 4,628 4,867 -5% 4,524 4,783 -5% Non-Interest Income 2,574 2,388 +8% 1,857 1,638 +13% Total Income 7,202 7,255 -1% 6,381 6,421 -1% Op
Slide 5: 2Q25 Group net profit 4% lower QoQ, Banking Operations up 2%
Performance overview 2Q25 Group net profit 4% lower QoQ, Banking Operations net profit up 2% QoQ Group Performance Banking Operations Performance (S$m) 2Q25 2Q24 YoY 1Q25 QoQ 2Q25 2Q24 YoY 1Q25 QoQ Net Interest Income 2,283 2,430 -6% 2,345 -3% 2,230 2,389 -7% 2,294 -3% Non-Interest Income 1,264 1,19
Slide 6: 1H25 Financial highlights
Performance highlights 1H25 Financial highlights ■ Balanced franchise provides Banking Wealth Management earnings diversification Net Profit (S$m) Total Income (S$m) Group WM Income (S$m) 1/ Banking WM AUM (S$b) 37% ■ Loans and deposits up YoY -8% 35% +11% -1% +1% and QoQ, Banking Operations 6,421 6
Slide 7: Diversified earnings across business and geography
Performance review Diversified earnings across business and geography Operating Profit by Business Operating Profit by Geography Others Others Insurance 1% 7% 17% 5% 1H25 6% 1H25 Greater China 16% 20% 1H24 18% 1H24 Global Global 10% 4% Markets 48% 47% Wholesale 5% 53% Singapore Banking 59% Indonesia
Slide 8: Strong balance sheet position to support long-term growth
Balance sheet Strong balance sheet position to support long-term growth Loans-to-Deposits Ratio Funding Composition (%) Group LDR (%) ■ Balanced funding structure Customer deposits 12% with 80% from customer Bank deposits 6% deposits Debts issued 2% S$511b Capital and reserves Jun 25 81.1 78.9 78.7
Slide 9: Group Performance Trends
Agenda 01 Financial Highlights 02 Group Performance Trends 9
Slide 10: 2Q25 NII softened as NIM narrowed QoQ
Net interest income 2Q25 NII softened as NIM narrowed QoQ, reflecting 1Q22 lower interest rate environment 1H25 YoY 2Q25 +44% 2.20% 2.18% 2.15% 2.23% 2Q23 YoY -6% Net Interest Margin 2.04% 1.92% 1.98% YoY -5% QoQ QoQ +44% -3% 4,867 4,628 2,430 2,433 2,455 2,345 2,283 ■ 2Q25 NII dipped QoQ as NIM dec
Slide 11: 1H25 Non-II rose 8%
Non-interest income 1H25 Non-II rose 8% 1H25 YoY 2Q25 +44% 2Q23 YoY +5% YoY +8% QoQ QoQ +44% -4% 36.0% 35.8% 35.6% 35.7% 33.0% 32.9% % of Group Income 28.1% 2,574 ■ 1H25 and 2Q25 Non-II up 2,388 YoY, lifted by strong fee and 532 trading income, as well as 583 higher net realised gains Non-interest I
Slide 12: Sustained momentum in fee income growth
Non-interest income Sustained momentum in fee income growth 1H25 YoY 2Q25 +44% 2Q23 YoY +24% YoY +19% QoQ QoQ +44% +6% 1,126 142 ■ Strong broad-based growth in 945 1H25 fee income, on the back 77 of higher customer activities Net Fees & Commissions (S$m) 141 580 46 266 Others 2/ 546 ■ Fee income tre
Slide 13: 1H25 trading income increased YoY
Non-interest income 1H25 trading income increased YoY 1H25 YoY 2Q25 +44% 2Q23 YoY +6% YoY +6% QoQ QoQ +44% -5% 771 726 ■ 1H25 trading income up 177 6%, driven by 10% rise in 185 customer flow income 508 ■ 1H25 customer flow income growth underpinned by 396 356 202 375 both wealth and corporate Tradi
Slide 14: 2Q25 expenses declined QoQ
Operating expenses 2Q25 expenses declined QoQ 1H25 YoY 2Q25 +44% 2Q23 YoY +1% 45.7% YoY +3% QoQ QoQ +44% -2% 37.8% 38.5% 38.7% 39.1% 37.5% 38.9% Cost-to-income (CIR) ■ 1H25 CIR at 38.9% 2,804 2,719 317 ■ Disciplined cost 387 1,560 management, 2Q25 1,463 1,415 1,389 556 expenses lower QoQ 1,373 481 2
Slide 15: Asset quality well maintained
Asset quality Asset quality well maintained YoY YoY +4% +44% Jun 25 2Q23 Non-performing assets (NPAs) 2Q24 1Q25 2Q25 1H24 1H25 QoQ QoQ +44% +3% (S$m) At start of period 3,040 2,869 2,916 2,901 2,869 ■ NPL ratio steady at 0.9% against the prior year Corporate/ Commercial Banking and Others New NPAs 9
Slide 16: 2Q25 allowances lower QoQ and YoY
Allowances 2Q25 allowances lower QoQ and YoY 1H25 YoY 2Q25 +44% Credit costs (bps) 1/ 24 2Q23 YoY -21% 15 22 21 15 18 YoY +4% QoQ QoQ +44% -46% Total 12 16 15 17 ■ 1H25 credit costs at an 11 9 annualised 18bps; YoY Impaired 6 7 increase driven by additional allowances for 313 326 non-impaired assets
Slide 17: NPA coverage ratio at 156%
Allowances NPA coverage ratio at 156% YoY YoY +4% +44% 164% 162% 159% 156% Jun 25 2Q23 Total NPA coverage 155% QoQ QoQ +44% -1% Allowances for non-impaired 0.9% 0.9% 0.9% 0.9% 0.9% ■ NPA coverage ratio up YoY loans / Performing loans from increased allowances ■ Performing loans coverage 4,734 4,681
Slide 18: Loans grew 9% YoY to S$325b
Loans Loans grew 9% YoY to S$325b Loans by Geography Loans by Industry YoY YoY +7% +44% +7% Jun 25 2Q23 (S$b) QoQ QoQ +44% +1% (S$b) +9% in constant ccy terms +1% +3% in constant ccy terms 9% 325 22% 304 305 319 322 7% ■ Corporate, SME and 66 68 71 6% 9% 21% Rest of the world 64 63 5% Consumer/Priva
Slide 19: QoQ deposit growth driven by CASA increase
Deposits QoQ deposit growth driven by CASA increase YoY YoY +10% +44% 81.1% 81.6% 80.7% 78.9% 78.7% Jun 25 2Q23 Group LDR QoQ QoQ +44% +1% 83.0% 82.1% 81.4% 78.5% 79.8% ■ Total deposits up 1% QoQ, SGD LDR primarily from rise in CASA deposits, partly offset by 50.7% 51.8% 49.8% 48.1% 49.3% lower fixe
Slide 20: Robust capital position
Capital CET1 CAR Robust capital position after adjusting for 1H25 interim dividend to be paid on 21 August 2025 YoY YoY +1.5ppt +44% 1/ 17.2 1/ 17.1 1/ 17.6 17.0 1/ Jun 25 2Q23 1/ QoQ QoQ +44% -0.6ppt 2/ 2/ 2.1 2/ 2/ 16.2 1.6 Transitional uplift from 1.8 1.7 2/ final Basel III reforms 1.6 ■ Solid ca
Slide 21: Interim dividend at 41 cents
Dividend Interim dividend at 41 cents 60% ■ Maintained 50% ordinary 53% dividend payout ratio 53% 50% Dividend payout ratio 49% Full Year (including special) ■ Interim dividend of 41 cents Full Year declared Interim 50% 50% 50% 44% 42% ■ Remain committed to S$2.5 billion capital return plan 101 82 1
Slide 22: Thank you
Thank you Disclaimer: This presentation should be read as an overview of OCBC’s current business activities and operating environment which may contain statements relating to OCBC’s growth strategy and future business aspirations. This presentation contains “forward-looking statements”, which are ba
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