OCBC closed 2024 with stable performance, a steady growth trajectory, and a continued push into technology-led transformation. While the external environment remained unpredictable — with slower interest rate adjustments and ongoing geopolitical tensions — OCBC delivered its third year of record profits. Its strategy, focused on diversification, digitalization, and integration, helped the bank navigate the year with measured momentum.

Financial Performance in 2024

OCBC reported a net profit of USD 5.76 billion (SGD 7.59 billion) in 2024 — an increase of 8% from USD 5.33 billion (SGD 7.02 billion) in 2023. Total income rose to USD 11 billion (SGD 14.47 billion), up 7% year-on-year.

The rise came from broad-based growth across banking, wealth management, and insurance. Non-interest income jumped by 22% to USD 3.58 billion (SGD 4.72 billion), with wealth fees and insurance income both seeing strong gains.

Customer loans expanded 8% to USD 239.17 billion (SGD 315 billion), while deposits of non-bank customers reached USD 296.65 (SGD 390.7 billion), an increase of 7%. The cost-to-income ratio stood at 39.7%, and asset quality remained solid with a Non-Performing Loan (NPL) ratio of 0.9%, down from 1.0% in 2023.

The Common Equity Tier 1 capital ratio was 17.1% (transitional) and 15.3% (fully phased-in) under MAS’ new Basel III reforms.

To return value to shareholders, OCBC announced a USD 1.90 billion (SGD 2.5 billion) capital return plan over two years — combining special dividends and share buybacks. For 2024 alone, the dividend per share was USD 0.77 (SGD 1.01), up 23% from 2023, with a total dividend payout ratio of 60% — the highest in over 15 years.

Business Strategy and 2025 Focus Areas

OCBC’s strategy in 2024 continued to focus on leveraging its “One Group” structure — which brings together commercial banking, private banking, insurance, asset management, and securities. The group includes OCBC’s six regional commercial banks, Bank of Singapore, Great Eastern, and Lion Global Investors.

Some key moves during the year included:

1. Raising its stake in Great Eastern Holdings from 88.4% to 93.7%, bringing it closer into the OCBC fold.

2. Acquiring PT Bank Commonwealth in Indonesia, boosting OCBC’s standing in Southeast Asia’s largest economy.

OCBC has identified four strategic priorities moving forward:

1. Capturing rising Asian wealth, especially through Singapore and Hong Kong as wealth hubs.

2. Supporting trade and investment flows between ASEAN and Greater China.

3. Focusing on sectors like tech, digital infrastructure, and green energy, which are expected to drive the next wave of regional growth.

4. Accelerating climate financing, sustainable loans grew 31% year-on-year to USD 37.96 billion (SGD 50 billion), accounting for 16% of total group loans.

OCBC’s CEO also highlighted markets like Indonesia as key growth areas and shared that nearly 30% of new-to-bank corporate customers came from China expanding into ASEAN.

AI Initiatives

OCBC took significant steps in 2024 to deepen its use of AI, moving from experimentation to operational use. Below are key initiatives the bank implemented or expanded:

1. OCBC GPT - OCBC launched OCBC GPT, a generative AI chatbot for internal use. It assists over 30,000 employees globally with writing, research, summarisation, and ideation. The tool has shown up to 50% time savings on repetitive tasks.

2. OCBC Buddy - This in-house GenAI assistant answers employee questions about HR policies, claims, and approvals. It helps cut down on manual lookups and internal support emails.

3. A.I. Oscar - An AI-powered stock picker launched for retail customers in Singapore. It predicts stock movements and suggests personalized trading ideas. Trading account openings jumped by 95% following its launch within three months.

4. HOLMES AI - Used by relationship managers at the Bank of Singapore, this tool generates talking points, investment insights, and multi-asset strategies tailored to each client — saving prep time and improving client engagement.

5. AI for Scam Detection - OCBC’s AI-enabled surveillance flagged 30% more suspicious transactions compared to 2023, improving the bank’s ability to respond to scams and fraud attempts.

6. Home Loan Engagement Model - This model identifies customers who may need assistance managing their home loans, allowing the bank to reach out and support them before risks arise proactively.

Across OCBC:

1. Six million decisions per day are now AI-driven.

2. AI assists with 75% of customer service queries.

3. 100% of employee roles are now AI-augmented.

4. The bank is targeting a 20% lift in staff productivity by 2027.

5. Revenue from AI use is expected to double in the next few years.

OCBC has over 30 GenAI use cases live and more than 300 AI use cases in total, spanning compliance, sales, customer service, and risk management. AI governance follows the FEAT principles — Fairness, Ethics, Accountability, and Transparency.

Digital and Tech Investments

Digital banking continues to grow, with clear results in 2024:

1. Revenue from online sales of wealth products in Singapore rose by over 70%.

2. Revenue from regular premium bancassurance increased by 25%.

3. Alternative investment inflows at the Bank of Singapore grew by over 80%.

On the investment side, OCBC committed:

1. USD 193.42 million (HKD 1.5 billion) to tech infrastructure in Greater China.

2. USD 379.63 million (SGD 500 million) to build OCBC Punggol, an innovation hub in Singapore’s Punggol Digital District, expected to open in 2027.

3. USD 227.78 million (SGD 300 million) for the second phase of its digital core transformation roadmap (2023–2025).

Conclusion

OCBC’s 2024 results reflect consistent execution, especially in a year marked by economic slowdown and geopolitical tensions. With its diversified business model and increasing use of AI and digital tools, the bank is positioning itself for the next phase of regional growth.

In 2025, expect more from OCBC in digital banking, green finance, wealth management, and AI deployment — with a growing focus on productivity, cost control, and customer experience.