OCBC - DBS Research 2025-11-10: Dividend Policy A Potential Rerating Catalyst?

• OCBC (SGX:O39) reported 3Q25 revenue of S$3,796mil (flat y-o-y, +7% q-o-q), while net profit came in at S$1,978mil (flat y-o-y, +9% q-o-q), marking its highest quarterly earnings over last five quarters.

3Q25 revenue and net profit beat.

• - Read this at SGinvestors.io -
• Capital ratios remained robust, with CET1 at 16.9% (2Q25: 17.0%) and total capital adequacy ratio at 19.4% (2Q25: 19.6%).

Net interest income declined due to compressed NIM

• Net interest income declined to S$2,226mil (-9% y-o-y, -2% q-o-q) as net interest margin (NIM) compressed 8bps q-o-q to 1.84% driven by a downward repricing of loans from the decline of benchmark rates in S$ and other currencies, where the moderation in loan yields outpaced the reduction in deposit costs, offsetting average asset growth.

Non-interest income record quarterly high, improved on all fronts.

• - Read this at SGinvestors.io -

3Q25 saw higher credit costs of 16bps (2Q25: 12bps) driven by allowances for impaired assets.

• Read more at SGinvestors.io.

Above is an excerpt from a report by DBS Group Research.
Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.

Read also DBS's most recent report:
2026-02-26 OCBC - A Robust Capital Plan In The Works?.

Previous report by DBS:
2026-01-30 OCBC - A Robust Capital Plan In The Works? .

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