Ocbc Sees Loan Growth Slowing in 2025, Unveils $1.9 Bln Capital Return
OCBC's loan growth is expected to moderate in 2025 after a smaller-than-expected rise in fourth-quarter profit, and the bank has unveiled a S$2.5 billion capital return. The bank's net interest margin is also projected to weaken to around 2% in 2025, down from 2.2% in 2024. As loan growth slows, OCBC will focus on maintaining profitability through share buybacks and dividends.
- The bank's decision to return surplus capital to investors may signal a shift towards more conservative risk-taking strategies, potentially impacting its competitive edge in the market.
- Will this slower growth rate of loans be a cause for concern among regulators and policymakers, particularly in light of the global economic uncertainty?