OCBC said the capital return comprises special dividends amounting to 10 per cent of its 2024 and 2025 net profit, with the balance via share buybacks over two years, subject to market conditions and regulatory approvals.
OCBC, which is also Southeast Asia’s second-largest lender, said October-December net profit climbed to S$1.69 billion from S$1.62 billion a year earlier, mainly on higher non-interest income boosted by better fee, trading and insurance income.
The better performance, however, missed the mean estimate of nearly S$1.81 billion from five analysts polled by LSEG.
Larger peer DBS Group posted on Feb 10 a 10 per cent year-on-year jump in fourth-quarter net profit that met expectations and announced a dividend capital return plan.
Smaller rival United Overseas Bank posted on Feb 19 a 9 per cent rise in fourth-quarter net profit that beat expectations and announced a S$3 billion package to return surplus capital to investors.
Shares of both banks touched record highs following their earnings releases.
Growth could take a hit this year as US President Donald Trump’s trade tariffs and other policies threaten to undermine the global economy, analysts said.
OCBC, which counts Singapore, greater China, Indonesia and Malaysia among its key markets, said return on equity fell to 11.8 per cent in the fourth quarter from 12.4 per cent in the same period of 2023.
Its net interest margin declined to 2.15 per cent during the quarter from 2.29 per cent a year earlier.
