OCBC Q3 profit rises 3% to S$2.04 billion, slightly above expectations
However, non-interest income was down on the back of weaker investment performance by insurance arm Great Eastern.
[SINGAPORE] OCBC’s net profit for its third quarter rose 3 per cent amid strong performance across its wealth management and wholesale banking businesses, although it saw lower profit contributions from insurance arm Great Eastern, it said on Friday (Nov 6).
Net profit for the three months ended Sep 30, 2026 stood at S$2.04 billion, compared with S$1.98 billion from the year-ago period.
The earnings came in slightly above the S$2 billion consensus forecast in a Bloomberg survey of seven analysts.
Net interest income for the quarter rose 4 per cent to S$2.31 billion, supported by growth in average assets, from an increase in both customer loans and high-quality non-commercial assets.
Net interest margin was down 18 basis points (bps) to 1.66 per cent for the quarter, from 1.84 per cent in the previous corresponding period, amid a lower interest rate environment.
Non-interest income was down 10 per cent to S$1.42 billion, mainly reflecting weaker investment performance by Great Eastern.
The bank’s non-performing loans (NPL) ratio was 0.8 per cent, down from 0.9 per cent the same-period a year ago.
OCBC also raised its financial guidance for 2026 following its third-quarter results.
It now expects loan growth to be in the low double digits, compared with its previous forecast of high-single-digit to low-double-digit growth.
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Total income is expected to grow at least mid-single digit percentage, with a flat to slight decline in net interest income. It previously guided for a slight decline in net interest income.
Meanwhile, credit costs should be in the range of 15 to 20 bps, compared with the previously guided 25 to 30 bps.
OCBC group CEO Tan Teck Long expects global conditions will remain uncertain amid geopolitical tensions and elevated inflation risks.
“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,” he said.
“Meanwhile, AI and related technology sectors continue to register strong growth.”
Shares of OCBC closed 0.3 per cent or S$0.08 higher at S$27.93 on Thursday, before the release of the results.
