OCBC recently shared its financial performance for the fourth quarter of 2024, revealing several key factors worth noting.
For the fourth quarter, OCBC reported a net profit of S$1.69 billion, which is a 4% rise compared to the same quarter last year. However, this figure fell short of market expectations, which had been set at S$1.78 billion. Over the entire financial year of 2024, the bank reached a record net profit of S$6.0 billion, marking a 6% increase from the previous year.
In terms of dividends, OCBC declared a final dividend of S$0.41 per share. This marks a slight decrease from what was offered the previous year. Additionally, they announced a special dividend of S$0.16 per share. Looking ahead, the bank has unveiled plans to return S$2.5 billion to shareholders over the coming two years, through a combination of special dividends and share repurchases.
During the fourth quarter, OCBC’s total income saw a 4% uptick from the same period in the previous year, climbing to S$3.42 billion. Meanwhile, net interest income experienced a slight drop of 1% year-over-year, landing at S$2.46 billion. This decrease is primarily due to higher funding costs, which have counteracted the advantages of increased loan volumes. Furthermore, the net interest margin for OCBC slipped to 2.15%.
These financial metrics highlight OCBC’s focus on navigating the challenges of funding costs while delivering value to its shareholders.
