OCBC Group First Half 2026 Net Profit Grew 13% to a Record S$4.19 billion

07 Aug 2026

Second quarter net profit up 22% from a year ago

Interim dividend of 47 cents declared, up 15% from 41 cents a year ago

Singapore, 7 August 2026 – Oversea-Chinese Banking Corporation Limited (“OCBC”) reported a record net profit of S$4.19 billion for the first half of 2026 (“1H26”), up 13% from the previous year (“1H25”).

Total income grew 11% to S$8.00 billion, underpinned by record non-interest income which more than compensated for the decline in net interest income amid softer interest rates. Non-interest income rose 36%, lifted by record highs across fees, trading and insurance income. Cost-to-income ratio (“CIR”) improved year-on-year to 38.5%. Loans and deposits continued to grow, reflecting sustained momentum across the franchise. Asset quality remained healthy with non-performing loan (“NPL”) ratio stable at 0.9%, while allowance coverage for non-performing assets (“NPAs”) was 163%. The Group maintained a strong capital and liquidity profile, supporting growth and resilience. Annualised earnings per share was higher at S$1.86, with ROE higher at 13.7%.

For the first half of 2026, the Board has declared an interim ordinary dividend of 47 cents, up 15% or 6 cents from a year ago. This represents a payout ratio of 50% of 1H26 Group net profit. The Group remains committed to completing its previously announced S$2.5 billion capital return by FY26.

1H26 Year-on-Year Performance

Group net profit was S$4.19 billion, 13% above S$3.70 billion a year ago.

Net interest income declined 3% to S$4.49 billion, amid a lower interest rate environment. Net interest margin (“NIM”) compression was partly compensated by an 11% growth in average asset volume. NIM was 1.73%, 25 basis points below the previous year.
Non-interest income rose 36% to a record S$3.51 billion, accounting for close to 44% of total income, up from 36% a year ago.
- Net fee income grew 26% to S$1.41 billion, underpinned by strong wealth management, loan and trade-related and investment banking fees. Wealth management fees rose 39%, supported by increased customer activity across all wealth product channels, and accounted for 63% of total fee income.
- Net trading income was up 46% to S$1.13 billion from the previous year. Customer flow income grew 47%, driven by robust wealth-related activities and hedging demand from corporate customers. Non-customer flow income was higher, largely from investment income attributable to Great Eastern Holdings (“GEH”), reflecting stronger equity markets performance.
- Insurance income from GEH increased 49% to S$791 million, underpinned by robust underlying insurance and investment performance. Total weighted new sales (“TWNS”) and new business embedded value (“NBEV”) grew by 15% and 28% respectively supported by stronger sales momentum and improved product mix. NBEV margin improved to 49.8%, from 44.7% a year ago.
The Group’s wealth management (“WM”) income, comprising income from private banking, premier private client, premier banking, insurance, asset management and stockbroking, increased 27% to a record high of S$3.29 billion, supported by broad-based growth across the wealth continuum. Group WM income contributed 41% of total income, up from 36% in the previous year. Banking WM AUM rose 13% to a new high of S$350 billion, driven by net new money inflows from all wealth segments.
Operating expenses were S$3.08 billion, up 10% from the previous year. Staff costs mainly reflected higher performance-linked remuneration, and continued investments in talent and technology to enhance business capabilities. CIR was 38.5% for 1H26, lower compared to 38.9% a year ago.
Total allowances rose by 14% to S$372 million, mainly from higher allowances for non-impaired assets.
Share of results of associates grew 19% to S$637 million.
The Group’s annualised return on equity was 13.7%, up from 12.6% in the preceding year. Annualised earnings per share increased 14% to S$1.86.

2Q26 Quarter-on-Quarter Performance

Group net profit was S$2.22 billion, 12% higher compared to S$1.97 billion in the prior quarter.

Net interest income grew 2% from the previous quarter to S$2.26 billion, as a downward repricing of loans and an increase in wholesale funding costs were more than compensated by a 5% increase in average assets, driven by growth in loans and high-quality assets.
Non-interest income rose 19% to S$1.91 billion, largely driven by broad-based growth in fee income and trading income. Wealth management fees grew 12% from the previous quarter to a record high of S$470 million. Trading income increased 60% quarter-on-quarter to a record high of S$695 million. Customer flow income was supported by both wealth and corporate segments. Non-customer flow income rose, largely due to investment income from GEH on the back of the equity markets rebound post 1Q26.
Operating expenses rose 5% during the quarter. CIR was 37.8%, lower compared to 39.3% a quarter ago.
Total allowances were S$156 million, down 28% quarter-on-quarter, mainly from a decline in allowances for non-impaired assets. Credit costs were an annualised 14 basis points, lower as compared to 23 basis points in 1Q26.
Share of results of associates was up 4% to S$325 million.

2Q26 Year-on-Year Performance

Group net profit was 22% above the previous year.

Net interest income fell 1% from the previous year. While NIM declined by 22 basis points in a lower interest rate environment, the impact was partly cushioned by a 12% growth in average assets.
Non-interest income increased 51% year-on-year, driven by strong broad-based growth across fee, trading and insurance income, which rose 28%, 85% and 68% respectively.
Operating expenses rose 13% compared to 2Q25, and CIR was 37.8%, compared to 39.1% a year ago.
Total allowances of S$156 million were higher than a year ago, mainly from higher allowances for impaired assets.
Share of results of associates increased 24% to S$325 million.

Non-performing assets (“NPAs”)

Total NPAs as at 30 June 2026 were S$3.13 billion, up 4% from a year ago.
During the quarter, new corporate NPA formation was partly compensated by net recoveries, upgrades and write-offs.
NPL ratio was stable at 0.9%, and total NPA coverage was 163%.

Allowances

For 1H26, total allowances were up 14% at S$372 million, comprising:
- Allowances for impaired assets of S$147 million, which were lower than S$159 million in the previous year; and
- Allowances for non-impaired assets of S$225 million, which included management overlays set aside to reflect the macroeconomic uncertainties.
2Q26 total allowances were S$156 million, below the previous quarter.
Credit costs were an annualised 18 basis points for 1H26.

As at 30 June 2026, customer loans were S$364 billion, up 11% from a year ago and 5% from the previous quarter on a constant currency basis.
- The year-on-year expansion in loans was broad-based across industries and geographies.
- Sustainable financing loans rose 12% year-on-year to S$59.7 billion and accounted for 16% of Group loans, while total commitments stood at S$84.2 billion.
Customer deposits increased 13% year-on-year to S$459 billion, primarily supported by CASA deposit growth and higher fixed deposits.
Loans-to-deposits ratio was 78.4%, higher compared to 77.2% in the previous quarter.
The Group’s CET1 CAR is subject to MAS’ final Basel III reforms requirements which came into effect on 1 July 2024 and are being progressively phased in between 1 July 2024 and 1 January 2029. Group CET1 CAR as at 30 June 2026 was 15.7%, and on a fully phased-in basis, it was 14.0%.

An interim dividend of 47 cents per share has been declared.
The interim dividend payout will amount to S$2.11 billion, representing a payout ratio of 50%.
The Scrip Dividend Scheme will not be applicable to the interim dividend.

Message from Group CEO, Tan Teck Long

“Our first half 2026 results reflected strong momentum across our diversified franchise, with Group net profit rising 13% year-on-year to a record S$4.19 billion. Total income grew 11% year-on-year to S$8.00 billion, underpinned by strong performance across our Banking, Wealth Management and Insurance businesses as we continued to execute our Next Frontier strategy.

We achieved record non-interest income of over S$3.51 billion, which more than offset lower net interest income amid a softer interest rate environment. Wealth management income continued to perform strongly, rising 27% to a record S$3.29 billion.

Even as customer loans grew 11% year-on-year on a constant currency basis, asset quality remained sound, with our NPL ratio stable at 0.9%.

Looking ahead, global conditions remain uncertain amid geopolitical tensions and elevated inflation risks. Much of the near-term outlook will depend on the easing of Asia’s energy crunch brought about by the war in the Middle East. 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.”