Oversea-Chinese Banking Corporation Limited (OCBC) has announced a 5% year-on-year increase in net profit for the first quarter of 2026, reaching S$1.97b. This growth was primarily driven by a significant rise in non-interest income, which saw a 23% increase to S$1.61b, contributing over 40% to the total income.
The bank’s total income rose by 5% year-on-year to S$3.83b, supported by strong performances in wealth management, trading, and insurance sectors. Wealth management fees alone surged by 34%, reflecting increased customer activity across all product channels. Insurance income also saw a notable 34% rise, bolstered by robust performance and strategic shifts in product mix.
Despite a 5% decline in net interest income to S$2.22b due to a lower interest rate environment, OCBC managed to maintain a steady net interest margin of 1.76%. The bank’s operating expenses increased by 6% to S$1.50b, attributed to higher staff costs and ongoing IT investments, yet the cost-to-income ratio remained below 40%.
OCBC’s asset quality remained stable, with a non-performing loan ratio of 0.9%. The bank prudently set aside S$191m in allowances for non-impaired assets, increasing total allowance coverage for non-performing assets to 163%. The bank’s capital and liquidity positions remain strong, with a Common Equity Tier 1 (CET1) capital adequacy ratio of 17.0% under transitional Basel III reforms.
Looking forward, OCBC is well-positioned to pursue growth opportunities and navigate economic uncertainties, supported by its robust financial performance and strategic focus on wealth management and sustainable financing.
