OCBC Posts Record Banking Profit of S$1.90 Billion in Third Quarter
Key Facts
Singapore’s OCBC said profit from its banking operations reached a record S$1.90 billion in the third quarter of 2026, up 8% from the previous quarter, supported by loan growth, customer flow trading and fees. Group net profit was S$2.04 billion, down 8% from its record level in the second quarter. The bank said the decline was mainly due to weak investment performance at Great Eastern in its insurance business and shareholders’ funds. OCBC’s net profit exceeded the average analyst estimate, making it the only one of Singapore’s three largest banks to beat expectations that quarter. The results showed a divergence among the three banks, as lower trading and investment income weighed on DBS and UOB profits.
OCBC’s results reflected growth across several banking income streams despite a contraction in its net interest margin in a low interest rate environment. Net interest income rose 4% year on year, while net interest margin narrowed by 18 basis points. Fee income increased 8% year on year, with wealth management, loans, trade and investment banking activities contributing to the growth. The bank said profit from banking operations benefited from lending growth and continued momentum in customer flow trading income, alongside resilient fees. The mix highlights how fee and service-based revenue helped support banking profits during the quarter.
OCBC’s banking wealth management business posted a record performance excluding Great Eastern, with income rising 2% from the previous quarter to S$1.12 billion. Assets under management also rose 2% to a record S$358 billion. By contrast, weak investment performance at Great Eastern limited the impact of this growth on group net profit, which fell from the previous quarter. For the first nine months of 2026, OCBC’s net profit reached a record S$6.24 billion, up 10% year on year. The bank said asset quality remained strong, with the non-performing loan ratio improving to 0.8% and coverage of non-performing assets reaching 168%.
DBS reported that its markets trading income fell 65% year on year to S$152 million, citing unfavourable market conditions. Wealth management fees, by contrast, rose 9% to S$864 million. Net interest income also increased 4% from the previous quarter, with the net interest margin stable and loans and deposits each growing 3% on a constant currency basis. Wealth management assets rose 5% to a record S$544 billion, supported by record net new money inflows. For the first nine months, total income rose 2% to a record S$17.9 billion, while net profit increased 2% to S$8.82 billion.
UOB reported third-quarter net profit of S$1.25 billion, below the average analyst estimate of S$1.35 billion. Trading and investment income fell 33% year on year to S$322 million, weighing on the result. Net interest margin narrowed by six basis points from the previous quarter to 1.68%, as funding costs rose. The bank said competition among banks for deposits was intense. These pressures echo the picture in DBS’s results, where a drop in trading income was offset by better performance in some banking revenue streams and wealth management.
The results were released as Singapore shares faced selling pressure amid a broader market decline, according to CNA coverage published on November 6. The report linked the fall to concerns about valuations of artificial intelligence companies and tighter U.S. regulation. It did not attribute the market’s move to bank results alone. In its disclosure, OCBC said the benefits of higher U.S. interest rates would emerge in the coming quarters as assets were repriced, after the rate increase had pressured margins during the quarter. It also cited continued uncertainty in global conditions amid geopolitical tensions and elevated inflation risks.