Oversea‑Chinese Banking Corp (OCBC) posted a net profit of S$2.04 billion for the quarter ended 30 September 2026, a 3 % increase from the S$1.98 billion recorded a year earlier. The result edged above the Bloomberg consensus of roughly S$2 billion, making OCBC the only Singapore bank to meet third‑quarter expectations 【1†L1-L4】.
Key earnings drivers
Banking operations delivered a record profit of about S$1.9 billion, up 8 % year‑on‑year, propelled by strong loan growth, robust customer‑flow trading and resilient fee income 【1†L5-L8】. Net interest income rose 4 % to S$2.31 billion, the highest level in six quarters, reflecting higher yields on a larger loan book despite higher funding costs 【1†L9-L11】. Fee income grew 8 % YoY, driven by wealth‑management, loan, trade‑related and investment‑banking fees 【1†L12-L13】, while non‑interest income fell 10 % to S$1.42 billion as Great Eastern’s investment performance weakened, dragging down both trading (‑10 %) and insurance (‑37 %) income 【5†L7-L11】.
Operating expenses were flat YoY, and the share of results from associates rose 19 % to S$331 million 【1†L13-L15】. The bank’s non‑performing loan ratio improved to 0.8 % from 0.9 % a year earlier, while credit costs were just six basis points for the quarter 【4†L31-L33】.
Tan Teck Long discusses wealth management and growth opportunities
Group chief executive Tan Teck Long said the results were underpinned by wealth‑management and wholesale‑banking strength, even as the insurance arm faced a challenging investment environment. He cautioned that global conditions remain uncertain amid geopolitical tensions and elevated inflation risks,
adding that the bank’s near‑term outlook would hinge on easing energy prices in the Middle East and developments in Indonesia 【1†L33-L37】. The CEO also highlighted continued growth in artificial‑intelligence and related technology sectors 【1†L38-L40】.
Guidance upgrade
Following the quarter, OCBC lifted its 2026 outlook across several metrics. Loan growth is now expected in the low‑double‑digit range, up from a prior high‑single‑digit to low‑double‑digit range 【4†L66-L68】. Total income is forecast to expand by at least a mid‑single‑digit percentage, with net interest income projected to be flat or decline slightly 【2†L19-L21】. Credit costs are now expected to sit between 15 and 20 basis points, tighter than the earlier 20‑25‑basis‑point range 【2†L22-L24】, while the bank maintains a 50 % dividend payout ratio and a S$2.5 billion capital‑return plan through FY2026 【4†L71-L73】.
Market reaction
OCBC’s shares closed marginally higher, up 0.3 % to S$27.93, reflecting investor confidence in the bank’s ability to deliver growth despite a softer margin environment 【5†L21-L24】.
OCBC’s third-quarter performance shows its diversified income streams—record banking operations profit, solid net interest growth and fee-income resilience—despite headwinds from the insurance arm and a modest dip in net interest margin to 1.66% 【5†L12-L15】. The upgraded guidance suggests the bank can manage a volatile macro backdrop and capture opportunities in higher-rate environments.