BUSINESS PERFORMANCE UPDATE

In the first half of 2025, OCB recorded a credit growth rate below the industry average, at +8.1% YTD. Meanwhile, deposits posted positive momentum with a growth of +12.7% YTD. In 1H, OCB reported net interest income (NII) up +11.7% YoY and non-interest income (NII) up strongly +58.5% YoY. However, rising OPEX and provisions led to a pre-tax profit decline of 10.4% YoY. The bank’s NPL ratio currently stands at 2.6%, while credit growth potential remains significant with an LDR of only 71.4%.

COMMENT

OCB is in the group of small-to-mid-sized banks with a strength in operational efficiency (ROE consistently around 20%). In its 2025–2027 business orientation, the bank shared its strategy to accelerate digital transformation and maintain its goal of being in the top 5 in ROE profitability across the system. In recent time, OCB has shown efforts to expand its network through new branches as well as strengthen digital banking. Its strategy of broadening the ecosystem via subsidiary OCBS will also enhance cross-selling efficiency. For 2025, OCB targets credit growth of 16% and profit growth above 33%. Despite challenges related to maintaining NIM and increasing competition across the banking sector, a stable macro environment along with the legalization of Resolution 42 on bad debt settlement is expected to support the bank in achieving these goals.