- OCBC (SGX:O39)'s 3Q25 earnings of S$1.98bn were slightly above our estimates as a surge in WM fees provided a boost to fee income. 9M25 PATMI was 77% of our FY25e forecast.
- - Read this at SGinvestors.io -
- NII dipped 9% y-o-y as loan growth of 7% was offset by NIM declining 34bps y-o-y to 1.84%. Total non-interest income rose 15% y-o-y from a 53% surge in WM fees and a recovery in insurance income, while allowances declined and expenses inched up.
- OCBC has lowered its FY25e guidance for NIM to around 1.90% (previously 1.90-1.95%) and for NII to decline by mid to high single digits, offset by lower credit costs of around 20bps (previously 20 to 25bps), while maintaining guidance of mid-single digit loan growth.
The Positives
Surge in WM fees keeps earnings stable.
- - Read this at SGinvestors.io -
- WM AUM was 18% higher y-o-y at S$336bn, driven by net new inflows of S$12bn for the quarter, of which more than 60% were placed into investments. As a result, total fee income rose 34% y-o-y and was the main driver of stable earnings.
Provisions continue to improve.
- Read more at SGinvestors.io.
