, Singapore
650 views
Photo by Terence Ong via Wikimedia Commons.

OCBC remains stable amidst strong credit fundamentals: Moody's

This will be backed by healthy credit standing.

OCBC will remain stable at least until next year amidst projected strong credit fundamentals in 2024-2025, according to Moody’s.

In its latest rating report, Moody’s said “OCBC's problem loans ratio will remain below 2% of gross loans over that horizon, its core capital ratio will decrease slightly, and the bank's profitability will remain high with return on assets of around 1.1%-1.2%.”

The bank’s liquidity and funding, as well as capital buffer, are also seen to remain robust in the coming months. 

Moody’s said OCBC’s tangible common equity to adjusted risk-weighted assets and Common Equity Tier 1 ratio will remain stable in 2024-2025. These stood at 20% and 15.9% at end-2023, respectively.

The bank’s return on assets is also projected to remain at a good level of around 1.1%-1.2% in 2024-2025, albeit lower than 1.25% in 2023, amid net interest margin compression driven by easing monetary policies.

ALSO READ: DBS, OCBC to see net profits dip, loan growth soften in Q1

“OCBC's funding and liquidity will remain significant credit strengths. OCBC will maintain its strong deposit-led funding with low reliance on market funds whilst keeping a high buffer of liquid assets at around 30% of total assets,” Moody’s explained.

Follow the link for more news on

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!