OCBC posts 3% rise in Q4 profit to $1.75b, declares special dividend

Singapore's Oversea-Chinese Banking Corp (OCBC) delivered strong profits of $1.74 billion in the fourth quarter of 2025, and announced a final ordinary dividend of 42 cents per share, along with a special dividend of 16 cents per share.

OCBC's net profit for the three months ending in Dec 31, 2025 rose 3 per cent year-on-year — up from $1.68 billion in 2024 — according to an earnings report released on Wednesday (Feb 25).

In line with the bank's robust financial performance and $2.5 billion capital return plan, OCBC declared a final ordinary dividend of 42 cents per share and a special dividend of 16 cents per share. 

Combined with the interim dividend of 41 cents for the first half of 2025, total dividends for FY25 will amount to 99 cents per share, representing 60 per cent of group net profit.

Profit before tax hits new high

OCBC's net interest income for the fourth quarter fell 6 per cent year-on-year to $2.30 billion, as asset yields compressed at a faster pace than deposit costs in a declining interest rate environment. 

At the same time, the bank reported that profit before tax for FY25 rose 2 per cent to a new high of $9.12 billion, supported by record total income amid a declining interest rate environment.

However, the bank's full year net profit for FY25 slipped by two per cent to $7.42 billion, down from $7.59 billion in the previous year.

Return on equity also fell to 12.6 per cent for FY25 from 13.7 per cent the previous year, resulting in earnings per share of $1.63.

Looking ahead, group CEO Tan Teck Long said that the bank remains "cautious yet positive".

"Global conditions are likely to remain uncertain, shaped by geopolitical tensions, evolving trade dynamics and interest rate uncertainty," he said, adding that OCBC's strong balance sheet, prudent risk management and diversified growth engines will help weather the challenging environment.

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dana.leong@asiaone.com