OCBC Bank's stock surged 3.55% in Friday's pre-market trading following the release of its third-quarter earnings report, which exceeded market expectations despite ongoing margin pressures. The Singapore-based lender reported a net profit of S$1.98 billion for the quarter, unchanged from a year ago but surpassing analysts' estimates.
The bank's resilient performance was underpinned by a strong showing in non-interest income, which rose 15% to a record S$1.57 billion. This growth was primarily driven by robust activity in wealth management, treasury sales, and insurance sectors. However, net interest income declined by 9% year-on-year due to lower benchmark rates, reflecting the challenging interest rate environment faced by banks globally.
Looking ahead, OCBC has adjusted its outlook for 2025, forecasting a decrease in net interest income by a mid-to-high single-digit percentage. The bank also narrowed its net interest margin forecast to around 1.90% for the coming year. Despite these headwinds, OCBC's CEO Helen Wong emphasized the bank's strong balance sheet and robust capital position, which provide flexibility to manage risks and support future growth initiatives.
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