OCBC 3Q25 - UOB Kay Hian 2025-11-10: Delivering Growth In Non-interest Income & Stable Asset Quality

• OCBC (SGX:O39) reported net profit of S$1,978m for 3Q25 (flat y-o-y and +9% q-o-q), above our forecast of S$1,808m.

Succumbed to inevitable NIM compression.

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• The quarter saw a huge influx of deposits (+11% y-o-y), thus the loan-to-deposit ratio eased 3ppt y-o-y to 78.6%. Net interest income declined 9% y-o-y.

Broad-based growth in fee income led by wealth management.

• Fees grew 34% y-o-y and 18% q-o-q in 3Q25. Contribution from wealth management surged 53% y-o-y driven by broad-based growth across all channels as customers deployed funds to various asset classes.
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Strong growth in non-interest income.

• Contributions from life and general insurance grew 34% y-o-y to S$311m in 3Q25 due to improved investment performance from its insurance funds.
• Net trading income expanded 2% y-o-y to S$518m in 3Q25. Customer flow treasury income grew 22% y-o-y.

Discipline cost containment.

• Read more at SGinvestors.io.

Above is an excerpt from a report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full PDF report @ https://www.utrade.com.sg/.

Previous report by UOB:
2025-08-04 OCBC 2Q25 - New CEO, New Beginning.

Price targets by 3 other brokers at OCBC Target Prices.

Listing of research reports at OCBC Analyst Reports.

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