Third consecutive year of record profit driven by 22% non-interest income growth and record net interest income.

Record Total Income Breaches SGD 14 Billion

OCBC's FY2024 total income reached an all-time high of SGD 14,473 million (USD 10.8 billion at SGD/USD 0.746), marking a 7% increase year-on-year from SGD 13,507 million in FY2023. The bank surpassed the SGD 14 billion threshold for the first time, underpinned by broad-based growth across its Banking, Wealth Management, and Insurance franchises. Net profit rose 8% to a record SGD 7.59 billion, delivering a return on equity of 13.7%—unchanged from the prior year.

The income composition reflects a diversified earnings base. Net interest income contributed the majority at SGD 9,755 million (67.4% of total income), while non-interest income grew to SGD 4,718 million (32.6%). Operating expenses increased 10% to SGD 5,742 million, producing a cost-to-income ratio of 39.7%—within management's disciplined expense framework despite ongoing strategic investments.

{
  "type": "pie",
  "title": "Total Income Composition – FY2024",
  "subtitle": "Net interest income and non-interest income as shares of total SGD 14.5 billion",
  "x_label": "",
  "y_label": "",
  "y_unit": "%",
  "series": [
    {
      "name": "Net Interest Income",
      "data": [
        {
          "x": "FY2024",
          "y": 67.4
        }
      ]
    },
    {
      "name": "Non-Interest Income",
      "data": [
        {
          "x": "FY2024",
          "y": 32.6
        }
      ]
    }
  ],
  "source": "OCBC FY24 Condensed Financial Statements (Source 2) and OCBC Full Year 2024 Results Presentation (Source 5)"
}

Net Profit (SGD million)Source: Orionmano Industries

Net Interest Income and Margin Dynamics

Net interest income (NII) rose 1% to SGD 9,755 million, an all-time high, despite a declining net interest margin (NIM). The NIM contracted 8 basis points year-on-year to 2.20%, reflecting the lagged impact of lower interest rates and funding cost pressures that outpaced asset yield increases.

Asset growth offset the margin compression. Customer loans expanded 5% to SGD 319 billion, with average assets from customer loans increasing at a similar pace. The loan book was supported by the addition of income-accretive, lower-yielding assets that nonetheless expanded the interest income base. Interest income from customer loans reached a record SGD 9.76 billion.

Customer deposits grew 5% to SGD 391 billion, providing a well-diversified, stable funding base that enabled the bank to defend NII effectively. The bank's proactive balance sheet management and high-quality asset mix allowed it to largely neutralise the impact of a lower rate environment on net interest earnings.

Group net profit from Banking operations increased 5% to SGD 6.71 billion, reflecting the resilience of the core lending business.

Non-Interest Income Surges 22%

Non-interest income jumped 22% year-on-year to SGD 4,718 million, propelled by broad-based growth across wealth management, trading, and insurance—the three pillars of OCBC's diversified franchise.

Net fee income rose 9% to SGD 1,970 million, with wealth management fees surging 22% across all wealth channels. Investment banking and loan-related fees also contributed positively. The increase underscores OCBC's strategic focus on capturing the growing wealth management opportunity in Southeast Asia and Greater China.

Net trading income surged 53% to SGD 1,537 million, driven by record customer flow treasury income. The bank's markets business benefited from higher client activity and volatility-driven trading opportunities across fixed income, foreign exchange, and derivatives.

Insurance income increased 14%, reflecting the contribution from OCBC's majority stake in Great Eastern Holdings (93.72% as of year-end) and improved claims experience in the life insurance portfolio. The insurance income stream provided a stable, counter-cyclical revenue component that further diversified the group's earnings base.

The non-interest income growth lifted the group's operating profit before allowances to SGD 8,731 million, up 5% year-on-year.

Capital Strength and Asset Quality

OCBC maintained one of the strongest capital positions among ASEAN banks. The transitional Common Equity Tier 1 (CET1) capital adequacy ratio stood at 17.1% under MAS' final Basel III reform rules, which took effect on 1 July 2024. On a fully phased-in basis, the CET1 ratio was 15.3%, comfortably above regulatory minimums and indicating significant capital headroom.

Asset quality remained sound. The non-performing loan (NPL) ratio was unchanged at 0.9%, while credit costs declined to 19 basis points of loans from 20 bps in FY2023. Allowances for loans and other assets fell 6% to SGD 690 million, reflecting lower individual and collective provisions. The bank's prudent underwriting standards and diversified loan book, with limited exposure to stressed sectors, supported this outcome.

The strong capital position enabled the Board to announce a SGD 2.5 billion capital return plan over two years (FY2024–FY2025). The plan includes special dividends and share buybacks, with a target ordinary dividend payout ratio of 50% and a total dividend payout of 60% annually for FY2024 and FY2025. The final dividend for FY2024 is SGD 0.41 per share (ordinary) plus SGD 0.10 per share (special), bringing total dividends for the year to SGD 1.01 per share, a 23% increase year-on-year.

With a diversified funding base, robust capital ratios, and a disciplined approach to risk and cost, OCBC is well-positioned to navigate moderate interest rate headwinds in FY2025 while sustaining shareholder returns.