OCBC (SGX:O39)'s 3Q25 results were broadly in line with robust wealth and customer treasury flows helping lift non-II to a new quarterly high. OCBC reaffirmed its 60% payout for 2025 and together with a similar payout last year, this brings the total capital return dividends to an estimated S$1.49bn and concludes the dividend portion of the capital distribution plan.
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A good set of 3Q25 numbers
3Q25 PATMI of S$2bn (+9% q-o-q, flat y-o-y) bringing OCBC's 9M25 PATMI to S$5.7bn (-4% y-o-y), at ~79% of our and Street forecasts (4Q tends to be a quieter quarter).
9M25 reported ROE was 12.9% (FY24: 13.7%) while the fully loaded CET-1 ratio was at 15% (-30bps q-o-q).
Results highlights.
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Meanwhile, within trading income, customer flow treasury income hit a record high in 3Q25.
Elsewhere, NIM compressed 8bps q-o-q (-34bps y-o-y) due to lower benchmark rates, cushioned by lower funding cost. About 80% of S$ loans and almost its entire HKD loans are on floating rates. Otherwise, loans growth was 1% q-o-q (+7% y-o-y) while CASA growth remained robust (+2% q-o-q; +15% y-o-y).
Costs were higher q-o-q although 9M25 CIR of 39% is tracking better than the low-40% guidance.
Asset quality was intact with GIL stable at 1% although credit cost ticked up to 16bps (2Q25: 12bps; 3Q24: 22bps) leading to improved LLC of 145% (2Q25: 142%, 3Q24: 148%).
Briefing highlights.
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Above is an excerpt from a report by RHB Securities Research. Clients of RHB may be the first to access the full PDF report @ https://www.rhbtradesmart.com/.
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