OCBC 4Q25 - UOB Kay Hian 2026-02-26: Strategic Shift Provides Clarity Of Vision

• OCBC (SGX:O39) reported net profit of S$1,745m for 4Q25 (+3% y-o-y but -12% q-o-q), in line with our forecast of S$1,733m.

NIM starting to stabilise.

• NIM expanded 2bp q-o-q to 1.86% in 4Q25, reflecting bottoming and stabilisation of NIM. Loans expanded 9% y-o-y and 4% q-o-q on a constant currency basis, driven by expansion of Singapore (+11%), Malaysia (+8%) and rest of the world (+14%).
• - Read this at SGinvestors.io -

Double-digit growth in fee income.

• Fees grew 16% y-o-y but pulled back seasonally by 12% q-o-q in 4Q25. Contribution from wealth management increased 26% y-o-y, driven by broad-based growth across all channels and improved investment sentiment. AUM expanded by 15% y-o-y to an all-time high of S$343b.
• OCBC attracted net new money of S$6b in 4Q25 and S$27b in 2025. Loans-related fees increased 12% y-o-y.

Growth in non-interest income.

• - Read this at SGinvestors.io -
• Customer flow treasury income grew 37% y-o-y.

Discipline cost containment.

• Operating expenses were flat y-o-y at S$1,559m in 4Q25. Cost-to-income ratio (CIR) was healthy at 40.2% on a full year basis for 2025.

Stable asset quality.

• 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:
2025-11-10 OCBC 3Q25 - Delivering Growth In Non-interest Income & Stable Asset Quality.

Price targets by 4 other brokers at OCBC Target Prices.

Listing of research reports at OCBC Analyst Reports.

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