Oversea-Chinese Banking Corporation ( (OVCHF) ) has released its Q4 earnings. Here is a breakdown of the information Oversea-Chinese Banking Corporation presented to its investors.
Oversea-Chinese Banking Corporation (OCBC) is a leading financial services group in Southeast Asia, offering a comprehensive range of banking, wealth management, and insurance services across its key markets of Singapore, Malaysia, Indonesia, and Greater China. The company is renowned for its financial strength and stability, consistently ranking among the world’s safest banks.
OCBC reported a record net profit of S$7.59 billion for the financial year 2024, marking an 8% increase from the previous year. This growth was driven by robust income across its banking, wealth management, and insurance sectors, alongside a strategic focus on cost management and capital returns to shareholders.
Key financial highlights include a 7% rise in total income to S$14.5 billion, with net interest income reaching S$9.76 billion. Non-interest income surged by 22%, bolstered by significant increases in wealth management and trading income. The bank maintained a strong asset quality with a non-performing loan ratio of 0.9% and announced a S$2.5 billion capital return plan through dividends and share buybacks.
Operating expenses increased by 10% to S$5.74 billion, reflecting investments in strategic initiatives and business growth. Despite these expenses, the bank’s return on equity remained stable at 13.7%. OCBC’s capital adequacy ratios remained robust, with a Common Equity Tier 1 ratio of 17.1% under transitional Basel III reforms.
Looking forward, OCBC remains cautiously optimistic about regional growth prospects and is well-positioned to capitalize on emerging opportunities. The bank’s management emphasizes its commitment to delivering long-term value to stakeholders through prudent risk management and strategic capital deployment.