Singapore’s OCBC Bank has announced a significant $2.5 billion capital return to shareholders through special dividends and share buybacks over the next two years. This move follows the bank’s record-breaking $7.59 billion net profit for 2024.
OCBC’s 2024 Financial Highlights
- Final ordinary dividend: 41 cents per share (2024), down from 42 cents in 2023
- Total ordinary dividend: 85 cents per share, up from 82 cents in 2023
- Special dividend: 16 cents per share
- Total payout: $3.82 billion (payout ratio of 50%)
- Total dividend payout: $1.01 per share (payout ratio of 60%)
This capital return aligns with OCBC’s strategy to enhance shareholder value while maintaining a strong financial position.
OCBC’s Performance Compared to Local Peers
OCBC is not the only Singaporean bank returning capital to shareholders. DBS and UOB have also made similar announcements:
- UOB: Returning $3 billion to shareholders over the next three years
- DBS: Introducing a new “capital return” dividend and a special $1,000 bonus for non-senior employees
OCBC’s shares, however, saw a 2.2% drop to $17.21 on Feb 26, while DBS and UOB recorded slight gains.
Growth in Net Interest and Non-Interest Income
OCBC’s net profit grew by 8%, driven by robust income growth and lower allowances:
- Net interest income: $9.76 billion (+5%)
- Non-interest income: $4.72 billion (+22%)
- Net trading income: $1.54 billion (+53%)
- Wealth management income: $4.89 billion (+13%)
OCBC’s Wealth Management and GEH Stake Expansion
OCBC increased its stake in Great Eastern Holdings (GEH) to 93.72%, strengthening its wealth management business. GEH has been a key contributor to OCBC’s earnings, and CEO Helen Wong emphasized its strategic importance for long-term growth.
OCBC’s 2025 Outlook and Growth Strategy
Looking ahead, OCBC remains cautiously optimistic amid global economic uncertainties:
- Asean economies remain resilient, benefiting from supply chain shifts
- Focus on wealth management expansion, positioning OCBC as Asia’s leading wealth management player
- Navigating geopolitical complexities while seizing growth opportunities
Ms. Wong highlighted OCBC’s commitment to agility and adaptability in a volatile macroeconomic environment.
Conclusion
With record earnings and a significant capital return plan, OCBC continues to strengthen its position in Singapore’s banking sector. Investors and stakeholders will closely watch how the bank navigates 2025 amid evolving market conditions.
Stay updated on OCBC’s financial performance and investment opportunities by following our latest news and analysis.
