OCBC conservative about FY2025 targets amid trade tensions, uncertainties
Bank’s Q4 net profit is up 4% at S$1.7 billion, while full-year earnings rise 8% to a record S$7.6 billion
OCBC rode on the strength of macroeconomic tailwinds to register healthy growth for the full year ended December, as net profit hit a record high.
But its management is staying cautious about the year ahead.
Notably, OCBC is maintaining a conservative view of three rate cuts for 2025 – compared with its peers’ expectations of one or two cuts for the year – noting that the volatile environment and heightened trade tensions could impede global growth even as Asean economies remain resilient.
For the financial year 2025, the lender is targeting a net interest margin (NIM) of around 2 per cent and mid-single-digit loan growth.
It also expects a cost-to-income ratio in the low 40 per cent range and credit costs of around 20 to 25 basis points.
Copyright SPH Media. All rights reserved.
