OCBC posts 3% profit rise in Q3, lifts 2026 outlook
OCBC reported a 3% year-on-year increase in third-quarter net profit to $2.04 billion and raised its 2026 guidance, citing strong wealth management and wholesale banking performance.
OCBC said its net profit for the quarter ended September 30 rose 3% year on year to $2.04 billion, marking the second straight quarter with earnings above $2 billion. The result was slightly above the $2 billion consensus forecast of seven analysts surveyed by Bloomberg and was the only Singapore bank to meet third-quarter earnings expectations.
For the first nine months of 2026, the bank recorded a record $6.24 billion in net profit, up 10% from the same period a year earlier. Banking operations profit climbed 16% to a record $1.9 billion, driven by record income, low credit costs and higher associate profits, although the insurance arm Great Eastern contributed less.
Group chief executive Tan Teck Long attributed the performance to strong wealth management and wholesale banking contributions. Wealth management assets under management grew 7% to $358 billion, and wealth-management fees accounted for more than 60% of total fees. Customer loans rose 14% year on year to $372 billion, while deposits increased 12% to $461 billion.
Great Eastern posted a 72% decline in third-quarter net profit to $102.9 million, affected by weaker investment valuations and a one-off loss from the partial divestment of its Indonesian subsidiary. Excluding Great Eastern, the group’s total income grew 6%.
Tan said the bank’s four core markets – Singapore, Malaysia, Hong Kong and Indonesia – continue to expand, but global conditions remain uncertain due to geopolitical tensions and elevated inflation. He noted that near-term outlook depends on easing energy prices from the Middle-East conflict and on developments in Indonesia following MSCI’s potential market downgrade.
Looking ahead, OCBC raised its 2026 loan-growth forecast to low double-digit growth and expects total income to increase at least mid-single-digit, with net interest income projected to be flat or slightly lower. Credit costs are forecast to narrow to 15–20 basis points.
The bank will complete its $2.5 billion capital-return plan by 2026 and then revert to a 50% ordinary-dividend payout ratio. Shares fell about 1% to $27.65 in early trading on November 6 as Asian markets were pressured by a sell-off in technology and semiconductor stocks.