Chairman’s Reflections

Robust Financial Performance Amidst Uncertainty

Amidst a continuing declining interest rate environment, OCBC reported a net profit of $7.42 billion for 2025, down slightly by 2% year-on-year. Our return on equity remained resilient at 12.6%, and our capital position continued to be robust with fully phased-in Common Equity Tier 1 Capital Adequacy Ratio at 15.1%.

The decline in net interest income from lower rates was mitigated by increased loan volumes and strong broad-based non-interest income growth across wealth management fees, trading and insurance. In particular, our combined Wealth Management proposition in both OCBC Bank and the Bank of Singapore, where we operate our private bank business, generated robust fees.

Our increased equity stake in Great Eastern Holdings (GEH), now at 93.7%, has strengthened the Group's long-term shareholder value proposition as GEH's profit contribution increased by 28% from $882 million to $1.12 billion. OCBC's share of results of associates rose 8% to $1.08 billion, supported by our 20% equity stake in the Bank of Ningbo (BON). BON, which is ranked the 17th largest listed bank in China and the 81st largest bank globally by assets according to data from S&P Global, continues to steadily contribute dividends to us in 2025.

As we commit to new growth, we remain prudent in our risk postures. We proactively managed our existing Greater China commercial real estate exposures. Overall asset quality of our loan portfolio remained robust with the Non-Performing Loan (NPL) ratio unchanged at 0.9%, total credit costs lower at 17 basis points and allowance coverage at a strong 151%. Whilst continually investing in our capabilities to sustain existing businesses and new growth, we maintained discipline in managing our expenses, with Cost-to-Income Ratio at 40%.

The strength of our financials is evidenced by our unchanged credit ratings of Aa1 from Moody's and AA- from Fitch and S&P. These ratings put us as one of the world's most highly-rated banks.

OCBC will double down on its "One OCBC Group" capabilities and maximise the considerable internal synergies available. Together, with our insurance subsidiary, we have a combined asset base of $676 billion, placing us as the second largest financial services group in Southeast Asia.

Commitment to Sustained Shareholder Returns

We have always taken the long-term view on growth in our 93 years of operations, ensuring shareholder returns are delivered sustainably. Over the past five years, we delivered a total shareholder return of 156%. Last year, we announced a comprehensive $2.5 billion capital return plan after calibrating the capital levels that we need for our intended strategic growth commitments, balanced with a level of capital for unintended risks and unexpected events against the then prevailing global uncertainties.

The Board has recommended a final ordinary dividend of 42 cents per share for 2025, in line with our declared dividend policy of a 50% target ordinary payout ratio. As part of our capital return plan, the Board has also recommended a special dividend of 16 cents per share, amounting to 10% of 2025 Group net profit. This brings the total payout ratio to 60%. Total 2025 dividends will be 99 cents per share, representing a 5.8% yield against OCBC's 2025 average share price.

Our 2024 and 2025 special dividends and completed share buybacks amount to $1.7 billion, and we are targeting to complete the remaining $0.8 billion of our $2.5 billion capital return plan by financial year 2026.

Seamless Leadership Transition

We started 2026 with Mr Tan Teck Long formally assuming the role of Group CEO, following the retirement of Ms Helen Wong at the close of 2025. Teck Long was appointed Deputy CEO in July last year as part of the planned leadership transition process. The succession process was meticulously structured with a detailed scanning of the best available talents internally and externally in Singapore and abroad. Teck Long was the best candidate given his time working in OCBC and the region. The Board placed special emphasis on his vast experience and deep knowledge in ASEAN and Greater China given the current challenging global situation.

We thank Helen for her contributions during her tenure as the Group CEO of OCBC.

Our Management Team continues to be refreshed as detailed by Teck Long. At the Board level, Mrs Tan Ching Yee joined the Board in November 2025 as an Independent Director. She brings considerable insights given her background as a retired civil servant. Ms Tan Yen Yen has expressed her wish to step down from the Board and will be retiring in April 2026. We thank Ms Tan Yen Yen for her contributions whilst serving as our director.

Navigating Change, Recalibrating for "New Growth"

The current geopolitical and macroeconomic situation is unprecedented, creating great ambiguity and volatility. Confronting geopolitical risks of this magnitude is new to banking and finance. Concurrently, technological advancements are fast reshaping competitive dynamics, creating both opportunities and pressures in how we innovate and engage with the market.

We expect these multi-dimensional challenges to prevail for a considerable time, creating significant stress on how we sustain and identify new growth.

In facing these complexities, OCBC's uniquely diversified business lines and geographies give us several advantages. We have operated for 93 years, adroitly managing various challenges and crises. Our collective institutional memory is an asset. We sit advantageously with a sizeable network presence in fast-growing Southeast Asia, anchored by our home market in Singapore and meaningful presence in Indonesia and Malaysia, being the 8th and 9th largest bank by assets respectively, by our estimates. In Malaysia, GEH is the largest and longest established life insurer. We also have a creditable presence in Greater China, a private bank presence across Singapore, Hong Kong SAR and Dubai, and offices in the USA, UK and Australia supporting our international wholesale banking activities. This network gives us the ability to rapidly navigate changes in trade and investment flows that will result from the responses to the geopolitical and macroeconomic stresses.

Whilst actively managing this landscape, OCBC will double down on its "One OCBC Group" capabilities and maximise the considerable internal synergies available. Together, with our insurance subsidiary, we have a combined asset base of $676 billion, placing us as the second largest financial services group in Southeast Asia.

Considerable thought and effort were made in the latter part of last year to reflect the implications of geopolitical and macroeconomic headwinds, advances in technologies and changes in demographics in our core operating countries in our future strategy. This has resulted in a recalibration of our corporate strategy that is being rolled out.

Outlook Ahead

The intensifying conflict in the Middle East at the start of the year is a stark reminder of the persistent uncertainties confronting the world today. As we navigate this troubling environment, the Board and Management renew their commitment to all our stakeholders of our joint dedication to continue prudently growing OCBC.

I extend my sincere gratitude to my fellow Board Members for their collective wise counsel and to all who have contributed to shaping OCBC's achievements.

Mr Andrew Lee
Chairman
February 2026