OCBC’s Q3 net profit up 3% at $2.04b, lifted by record banking operations profit - The Straits Times
In the third quarter, OCBC’s banking operations profit rose 8% to a record $1.9 billion, supported by loan growth, continued momentum in customer flow trading income and resilient fees.
SINGAPORE – OCBC reported on Nov 6 that its net profit for the third quarter rose 3% from a year earlier to $2.04 billion, boosting its bottom line for the first nine months of 2026 to a record high.
The earnings came in slightly above the $2 billion consensus forecast in a Bloomberg survey of seven analysts, making OCBC the only Singapore bank to meet third-quarter expectations.
Banking operations profit in the third quarter climbed 8% to a record $1.9 billion, supported by loan growth, continued momentum in customer flow trading income and resilient fees.
Net interest income for the quarter increased 4% from a year earlier to $2.31 billion – the highest over six quarters – buoyed by loan growth and improved yields, despite higher funding costs.
Fee income grew 8% year on year, driven by broad-based fee growth, particularly from wealth, loan, trade-related and investment banking activities.
Trading income fell 10% while insurance income declined 37%, mainly reflecting Great Eastern’s weaker investment performance.
Operating expenses were unchanged year on year, whereas the share of results from associates expanded 19% to $331 million.
OCBC group chief executive officer Tan Teck Long said the latest result was underpinned by strong performance across its wealth management and wholesale banking businesses as the group continued to execute its growth strategy.
The lender said the underlying business of its insurance arm under Great Eastern remained resilient. New business embedded value rose 14% year on year, driven by more than 20% growth in its agency and bancassurance channels in Singapore.
This is despite the unit reporting a 72% year-on-year fall in third-quarter net profit to $102.9 million on Nov 2, dampened by weaker investment valuations and a one-off loss from the partial divestment of its Indonesian subsidiary.
OCBC’s net profit for the third quarter was 8% below the record level in the second quarter of 2026, mainly due to weaker investment performance in insurance and shareholders’ funds.
For the second quarter ended June 30, OCBC reported earnings of $2.22 billion, up 22% from $1.82 billion a year earlier.
Net profit for the first nine months of 2026 increased 10% from a year earlier to $6.24 billion, driven by broad-based growth across wealth management, wholesale banking and insurance.
For the first nine months, wealth management fees surged 25% to a record $1.33 billion and non-interest income from wholesale banking grew 24%.
Non-performing assets edged up 2% year on year to $3.04 billion on Sept 30.
Looking ahead, Tan said global conditions remain uncertain amid geopolitical tensions and elevated inflation risks.
He said much of the near-term outlook will depend on the easing of energy prices brought about by the war in the Middle East, while the market conditions in Indonesia are also being closely monitored. Meanwhile, AI and related technology sectors continue to register strong growth.
“With our strong capital, funding and liquidity position, diversified income streams and disciplined risk management, we are well positioned to navigate uncertainties and tap the growth sectors to deliver sustainable long-term value,” Tan added.
Angela Tan is senior correspondent at The Straits Times’ business desk.
