OCBC reports 3% rise in Q3 profit to S$2.04 billion, lifts 2026 outlook
OCBC's third-quarter net profit grew 3% to S$2.04 billion, slightly beating forecasts, and the bank raised its 2026 guidance on loan growth and credit costs.
OCBC said its net profit for the quarter ended 30 September 2026 increased 3% to S$2.04 billion, up from S$1.98 billion a year earlier. The result was marginally above the S$2 billion consensus estimate from a Bloomberg survey of seven analysts.
Net interest income rose 4% to S$2.31 billion, driven by higher average assets from growth in customer loans and high-quality non-commercial assets. The net interest margin fell 18 basis points to 1.66%, reflecting a lower-interest-rate environment. Non-interest income declined 10% to S$1.42 billion, mainly due to weaker investment performance by the bank's insurance arm Great Eastern.
The non-performing loan ratio improved to 0.8% from 0.9% a year earlier. Following the results, OCBC lifted its 2026 guidance, now expecting loan growth in the low double-digit range and total income growth of at least a mid-single-digit percentage, with net interest income projected to be flat to slightly lower. Credit costs are forecast at 15-20 basis points, narrower than the prior 25-30-basis-point range.
"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," group CEO Tan Teck Long said.
"Meanwhile, AI and related technology sectors continue to register strong growth."
OCBC shares closed 0.3% higher at S$27.93 on Thursday, prior to the earnings release.