Singapore bank OCBC raises 2026 guidance after Q3 profit beat (updated)

Oversea-Chinese Banking

05/11/2026 23:07

Updates with share price movement, comments from CEO
By Rae Wee
SINGAPORE, Nov 6 (Reuters) - Singapore's Oversea-Chinese Banking Corp OCBC.SI on Friday raised its 2026 outlook after posting a 3% annual rise in third-quarter net profit that beat estimates, even as weakness in its insurance arm weighed on its bottom line.
OCBC, Singapore's second-largest bank, said July-September net profit rose to S$2.04 billion ($1.60 billion) from S$1.98 billion a year earlier. This was slightly higher than the mean estimate of S$2.01 billion from four analysts, according to LSEG data.
Shares of OCBC last traded 1% lower at S$27.67, in line with a stock market rout across Asia.
     
Here are some details:
Net interest income rose by 4% from a year earlier, helped by growth in customer loans and high-quality non-commercial assets. However, the performance was dragged down by an 18-basis-point fall in net interest margin, a key profitability gauge
Trading and insurance income declined 10% and 37% year-on-year, respectively, largely due to the weaker investment performance of its insurance arm Great Eastern Holdings
OCBC's customer flow trading income jumped by 29% from a year earlier, although non-customer flow trading and investment income swung to a S$15 million loss in the third quarter
"(Wealth) customer investment sentiment has been cautious since July," said Group CEO Tan Teck Long during a results briefing on Friday
The bank said Great Eastern saw mark-to-market losses in its bond portfolio in the third quarter, while significant gains from equities made in the second quarter were not repeated
The group's wealth management income, comprising income from private banking, premier private client, premier banking, insurance, asset management and stockbroking, declined 25% from the previous quarter due to weaker investment performance at Great Eastern
Excluding Great Eastern, banking wealth management income rose 2% to a record high of S$1.12 billion, as the lender continued to benefit from Asia's wealth boom
The bank said it is monitoring the evolving Middle East conflict and energy market situation, as well as market conditions in Indonesia
"We dialed back a little bit on our risk assets, our loan book last year," said Tan. "This year, we are back on the growth track ... There will still be more vulnerable segments, so we try to match that exposure conservatively"
The bank raised its 2026 loan growth forecast to low double digits, from its previous projection of high-single-digit to low-double-digit growth
OCBC expects total income to grow by at least a mid-single-digit percentage this year, while net interest income is projected to be flat or decline slightly. Credit costs are also expected in the range of 15-20 bps, from 20-25 bps previously
"In terms of tone on the market, it will be like this year. I don't think it will change very much in terms of tone, the risk factors are similar," Tan said of the market outlook next year
OCBC's results round out the third-quarter earnings season for Singapore lenders, with peers DBS DBSM.SI and UOB UOBH.SI reporting weaker-than-expected profits, weighed down by a decline in trading income
     
($1 = 1.2771 Singapore dollars)
     

 (Reporting by Rae Wee; Editing by Christian Schmollinger)
 ((Rae.Wee@thomsonreuters.com;))