SINGAPORE, Oversea-Chinese Banking Corporation (OCBC) has revised its 2025 economic outlook downward, citing persistent global tariff uncertainties and geopolitical tensions, even as the bank posted resilient earnings for the second quarter of 2025.
OCBC reported a net profit of S$1.81 billion for Q2, in line with analyst expectations and slightly above the S$1.77 billion posted in the same period a year earlier. The bank attributed the performance to steady loan growth, improved net interest margins, and a strong showing from its wealth management and insurance units.
However, Group CEO Helen Wong said that continued friction in global trade policies — particularly between the US and China — is clouding the regional economic outlook. “While our core businesses remain stable, the prolonged uncertainty around tariffs and protectionist policies continues to weigh on investment confidence and supply chain stability,” she noted during the earnings briefing.
OCBC’s key markets, including Singapore, Malaysia, and Greater China, have seen moderate growth, but Wong highlighted that the bank is adopting a “more measured stance” in forecasting next year’s business climate.
The lender now expects GDP growth across its core ASEAN markets to moderate to 3.5%–4.0% in 2025, down from its earlier projection of 4.3%–4.7%. It also warned of potential pressure on asset quality and loan demand if trade disruptions persist.
Despite the cautious outlook, OCBC’s fundamentals remain solid. Net interest income rose 8% year-on-year, underpinned by higher interest rates and sustained lending activities. Fee income, however, declined slightly due to lower investment product sales amid market volatility.
The bank maintained its interim dividend at S$0.30 per share, reflecting confidence in its capital position. OCBC’s Common Equity Tier 1 (CET1) ratio stood at 15.2% as of end-June, well above regulatory requirements.
Looking ahead, OCBC plans to maintain its focus on regional expansion, sustainable finance, and digital transformation. “We are actively investing in digital platforms and green financing initiatives to support long-term growth,” Wong added.
Still, she cautioned that the full-year guidance would remain conservative unless there is meaningful progress in resolving major global trade disputes.
