OCBC Regional Banking Growth Set to Outpace Singapore
OCBC expects regional transaction banking revenue to match Singapore by year end. Growth is driven by cross-border trade and Chinese corporate expansion.
OVERSEA-CHINESE BANKING CORP, the second-largest lender in Singapore, expects its transaction banking business in regional markets to continue growing faster than its domestic operations. Melvyn Low, the group's chief strategy and transformation officer, noted that this growth is being propelled by an increase in regional fees and foreign exchange transactions associated with cross-border trade, as well as the expansion of corporate clients from China into Southeast Asia.
Currently, transaction banking revenue is split approximately 60:40 between the domestic market and regional geographies. However, Low anticipates that the contribution from international markets could match or surpass domestic earnings by the end of the year, despite a higher base.
"By the time we finish this year, I wouldnt be surprised if the geographies earn closer to or maybe even more than Singapore, and that is considering a higher base also," Low said.
The percentage contribution from international markets, including Malaysia, Indonesia, and Hong Kong, saw growth exceeding 10% over the past year. Data from the bank indicates that fee income from cash management and foreign exchange transactions in regional markets grew by 9% in 2025, compared to a 2% increase in the domestic market.
Over a five-year period, the bank's transaction banking revenue has maintained an annual growth rate of approximately 20%. In the previous year alone, corporate current and savings account balances rose by more than 10%, while trade balances saw an increase of over 20%.
