Brief Introduction:
Oversea-Chinese Banking Corporation (SGX: O39), more commonly known as OCBC, is the second-largest financial services group in Southeast Asia by total assets.
Headquartered in Singapore, the bank provides a comprehensive range of financial solutions spanning consumer, corporate, investment, private, and transaction banking, alongside treasury services, insurance, asset management, wealth management, and stockbroking.
With a network of close to 400 branches and representative offices across 19 countries and regions, OCBC’s core markets are Singapore, Malaysia, Indonesia, and Greater China.
The bank also enjoys one of the strongest credit profiles globally, having been assigned long-term credit ratings of Aa1 by Moody’s and AA- by both Fitch and S&P. In addition, OCBC has consistently been recognised among Global Finance‘s World’s 50 Safest Banks and has also received The Asian Banker‘s Best Managed Bank in Singapore award.
Financial Figures (2Q FY2025 vs. 2Q FY2026):
| 2Q FY2025 | 2Q FY2026 | % Gain/Loss | |
| – Net Interest Income (S$’mil) | $2,283m | $2,264m | -0.8% |
| – Net Fee & Commission Income (S$’mil) | $580m | $739m | +27.4% |
| – Other Non-Interest Income (S$’mil) | $684m | $1,167m | +70.6% |
| Total Income (S$’mil) | $3,547m | $4,170m | +17.6% |
| Total Expenses (S$’mil) | $1,389m | $1,575m | +13.4% |
| Net Profit (S$’mil) | $1,816m | $2,221m | +22.3% |
Overall, OCBC delivered a strong set of financial results for the 2nd quarter of FY2026, with quarterly net profit surpassing S$2 billion for the first time, supported by record total income of S$4.170 billion.
The strong performance was primarily driven by growth in non-interest income – Net fee and commission income surged 27.4% year on year, led by record wealth management fees, as well as higher contributions from loan and trade-related activities and investment banking fees. Meanwhile, other non-interest income rose significantly by 70.6% year on year, boosted by a sharp increase in trading income and stronger contributions from its life and general insurance businesses, which grew by 85% and 68% respectively.
On the other hand, net interest income declined marginally by 0.8% year on year as the lower interest rate environment led to a 22 basis point compression in net interest margin, which fell from 1.92% a year ago to 1.70%. However, the impact was partially offset by a 12% increase in average assets.
Financial Figures (1H FY2025 vs. 1H FY2026):
| 1H FY2025 | 1H FY2026 | % Gain/Loss | |
| – Net Interest Income (S$’mil) | $4,628m | $4,486m | -3.1% |
| – Net Fee & Commission Income (S$’mil) | $1,126m | $1,414m | +25.6% |
| – Other Non-Interest Income (S$’mil) | $1,448m | $2,098m | +44.9% |
| Total Income (S$’mil) | $7,202m | $7,998m | +11.1% |
| Total Expenses (S$’mil) | $2,804m | $3,080m | +9.8% |
| Net Profit (S$’mil) | $3,699m | $4,195m | +13.4% |
Similar to its 2nd quarter performance, OCBC delivered a resilient set of financial results for the first half of FY2026, with net profit reaching a record S$4.195 billion.
The strong performance was primarily driven by growth in non-interest income – Net fee and commission income increased 25.6% year on year, supported by strong wealth management performance, which rose 27% to a record S$3.29 billion, alongside higher contributions from loan and trade-related activities as well as investment banking fees. Meanwhile, other non-interest income climbed 44.9% year on year, driven by a 46% increase in net trading income due to robust wealth-related activities and stronger hedging demand from corporate customers. Insurance income from Great Eastern Holdings also grew 49%, supported by solid underlying insurance performance and investment returns.
In contrast, net interest income declined by 3.1% year on year amid the lower interest rate environment, with net interest margin compressing by 25 basis points from 1.98% a year ago to 1.73%. This decline was partially mitigated by an 11% increase in average asset volume.
Total expenses rose by 9.8% year on year, mainly due to higher staff costs arising from increased performance-linked remuneration, as well as continued investments in talent and technology to strengthen the bank’s long-term capabilities.
Key Financial Ratios (1Q FY2026 vs. 2Q FY2026):
| 1Q FY2026 | 2Q FY2026 | Difference (in Percentage Points – pp) | |
| Net Interest Margin (%) | 1.76% | 1.70% | -0.06pp |
| Return on Equity (%) | 13.0% | 14.4% | +1.4pp |
| Non-Performing Loans Ratio (%) | 0.9% | 0.9% | – |
One key highlight was the improvement in the bank’s return on equity, which increased by 1.4 percentage points to 14.4%.
Although non-performing assets rose by 4.1% quarter on quarter, increasing from S$3.009 billion to S$3.132 billion, OCBC’s non-performing loan ratio remained stable at 0.9%. This continues to be the lowest among the 3 major Singapore banks, reflecting the bank’s strong asset quality and prudent risk management.
Dividend Payout to Shareholders (1H FY2025 vs. 1H FY2026):
OCBC adopts a half-yearly dividend payment schedule and maintains a dividend payout ratio of 50%.
The table below compares the Singapore bank’s dividend declared for 1H FY2026 with the corresponding payout in the previous year:
| 1H FY2025 | 1H FY2026 | % Gain/Loss | |
| Dividend Per Share (S$’cents) | 41.0 cents | 47.0 cents | +14.6% |
OCBC declared an interim dividend of 47.0 cents per share, representing a dividend payout ratio of 50% of its net profit, in line with the guidance provided by the bank’s management.
For OCBC shareholders, the following are the key dates to note for its upcoming dividend payout:
Ex-Date: 17 August 2026
Record Date: 18 August 2026
Payout Date: 28 August 2026
CEO Mr Tan Teck Long’s Comments & Outlook (from the Bank’s Press Release):
“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.”
Closing Thoughts:
OCBC’s latest financial results featured several record-breaking milestones.
In the 2nd quarter of FY2026, the bank’s quarterly net profit surpassed the S$2 billion mark for the first time, supported by record total income of S$4.170 billion. Its wealth management fees also reached a new quarterly high during the period.
For the first half of FY2026, OCBC delivered another record performance, with net profit rising to an all-time high of S$4.195 billion. This was driven by a strong 25.6% year-on-year increase in net fee and commission income, led by wealth management fees, which grew 27% to a record S$3.29 billion.
Reflecting its strong earnings performance, OCBC increased its interim dividend by close to 15% to 47.0 cents per share. This represented a 50% payout ratio of its net profit, in line with the guidance provided by management.
On the dividend front, management also reiterated its commitment to completing the remaining S$2.5 billion capital return plan by FY2026. This suggests that shareholders could potentially receive another special dividend when the bank announces its full-year results in February 2027 – a development that would certainly be welcomed by OCBC investors.
Related Documents:
Press Release
Financial Results
Results Presentation
CEO’s Presentation Slides
Results Posted by the Other Singapore-Listed Banks:
DBS Group Holdings Limited (SGX: D05): 2Q & 1H FY2026 Results Review
United Overseas Bank Limited (SGX: U11): 2Q & 1H FY2026 Results Review
Disclaimer: At the time of writing, I am a shareholder of Oversea-Chinese Banking Corporation Limited.
Stop Spending Hours Reading REIT Reports Every Quarter!
What if you could assess a REIT's portfolio occupancy, debt profile, valuation, and overall health in less than 30 seconds - without having to comb through a single quarterly report?
That's the problem the REIT Screener was built to solve.
Developed through a collaboration between ShareInvestor and The Singaporean Investor, the REIT Screener consolidates many of the key metrics and indicators I personally use when analysing REITs into one easy-to-use platform. Instead of spending hours extracting data manually every earnings season, you can now monitor the REITs you own and research new opportunities in just a few clicks.
If you're serious about REIT investing but don't have the time to manually track quarterly developments, the REIT Screener could be the shortcut you've been looking for:
Take a closer look at the REIT Screener here...
Comments (0)