OCBC Bank's stock surged 3.55% in pre-market trading on Friday following the release of its third-quarter 2025 financial results, which exceeded market expectations. The Singapore-based lender reported a net profit of S$1.98 billion for the quarter, unchanged from the previous year but beating analysts' estimates of S$1.81 billion.
The strong performance was primarily driven by record non-interest income, which helped offset a decline in net interest income. OCBC saw significant growth in its wealth management, treasury sales, and insurance segments, contributing to higher fee and trading income. The bank's total income remained stable at S$3.80 billion, despite a 9% year-on-year decrease in net interest income to S$2.23 billion.
Helen Wong, OCBC's Group CEO, commented on the results, saying, "The quarter's performance demonstrated the resilience of OCBC's diversified banking, wealth and insurance franchise." However, she also cautioned about the complex external environment, citing shifting policy dynamics and geopolitical tensions.
Looking ahead, OCBC has adopted a more cautious outlook for 2025, expecting net interest income to decline by a mid-to-high single-digit percentage. The bank also narrowed its net interest margin forecast to around 1.90%. Despite these challenges, investors appear to be responding positively to OCBC's ability to maintain profitability through its diversified business model and strong capital position.