OCBC and UOB, Singapore’s second and third largest banks, project stronger loan growth in 2025 after exceeding third-quarter profit expectations. This outlook follows recent U.S. rate cuts, though geopolitical uncertainties could still impact markets, said OCBC’s CEO Helen Wong.
Singapore's second and third largest banks, among Southeast Asia's biggest by assets, forecast an improving loan growth environment in 2025, after posting strong sets of third-quarter net profits that beat market expectations.
The forecasts followed the U.S. central bank's interest rate cut by a quarter percentage point on Thursday, the second straight reduction after a bigger half point cut in September.
"I do see that next year loan growth has a bigger potential compared to this year," said Oversea-Chinese Banking Corp (OCBC.SI), or OCBC, Group CEO Helen Wong at an earnings briefing.
Smaller peer United Overseas Bank (UOBH.SI), or UOB, projected high single-digit loan growth for 2025, versus low single-digit it is seeing for 2024, as it reported a faster-than-expected rise in third-quarter net profit.
Nevertheless, U.S. President-elect Donald Trump's proposed policies that include more import tariffs and stricter immigration restrictions could spur inflation and translate into fewer interest rate cuts by the Federal Reserve.
OCBC's Wong said uncertain geopolitical conditions could potentially create market volatilities.
OCBC, Singapore's second-biggest bank after DBS Group (DBSM.SI), said July-September net profit increased 9% to S$1.97 billion ($1.49 billion) from S$1.81 billion a year earlier. That beat the mean estimate of nearly S$1.91 billion from analysts surveyed by LSEG.
OCBC's improved performance was also driven by increased wealth management activity that lifted fee and trading income, in addition to higher insurance income and lower allowances.
Net interest margin was, however, lower at 2.18% during the quarter from 2.27% a year earlier, a trend similar with DBS and UOB too.
OCBC's return on equity rose slightly to 14.1% in the third quarter from 14.0% in the same period of 2023.
($1 = 1.3201 Singapore dollars)
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Scientists at the South China University of Technology have engineered a new ceramic material that pushes the boundaries of heat resistance, a development with major implications for hypersonic flight, rocket engines, and energy production.
Amid the threat of civil war and national collapse, Azerbaijan turned to its most experienced statesman, Heydar Aliyev, whose return to power on June 15, 1993, marked the beginning of the country's political revival.
In June 2025, Iran and Israel entered direct war for the first time, ending years of covert hostilities. The three-day conflict reshaped regional dynamics and left lasting military, civilian, and diplomatic consequences.
The Trump administration is preparing to dramatically widen its immigration crackdown, with plans to ban entry to citizens from 36 more countries unless security and cooperation standards are met within 60 days, according to an internal State Department cable.
"MAKE THE MIDDLE EAST GREAT AGAIN" — President Donald J. Trump called for peace between Israel and Iran, saying diplomacy is underway and a deal is within reach.
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