No longer is it feasible for commercial banks to focus on lending to customers and taking deposits from customers. Although the local banks are not as far along the non-interest income journey as the mega US banks, where earnings are boosted with investment banking, treasury and trading, the three local banks have expanded their non-interest income.
Oversea-Chinese Banking Corp (OCBC), Singapore’s second largest company by market capitalisation as of end-July, and second largest net profit in 2024, was formed in 1932 from the merger of three banks, the oldest of which was founded in 1912. This still makes subsidiary Great Eastern Holdings a few years older.
The banking scene has changed immeasurably since 1932. Singapore has turned into a hub, including a financial and wealth management hub, a fintech hub, a transportation hub, among others. Even in 1932, Singapore was a well-known port of call for ships sailing in all directions.
