Oversea-Chinese Banking Corporation (OCBC) posted net profit of S$1.97 billion for the three months ended 31 March 2026, up 5 per cent year-on-year, as surging fee, trading and insurance earnings offset a slide in interest income.

Annualised earnings per share rose 5 per cent to S$1.76, while return on equity was stable at 13.0 per cent. The bank did not announce any interim dividend for the quarter.

Total income increased 5 per cent YoY to a record S$3.83 billion. Non-interest income jumped 23 per cent to S$1.61 billion and accounted for 42 per cent of the top line, driven by: • Net fee income of S$675 million (+24 per cent YoY), buoyed by a 34 per cent surge in wealth management fees alongside higher investment-banking, trade-related and loan-related contributions. • Net trading income of S$434 million (+10 per cent) on stronger customer flow activity. • Insurance profit of S$409 million (+34 per cent) as Great Eastern logged higher new business embedded value and released reserves on favourable experience assumptions.

Net interest income declined 5 per cent to S$2.22 billion as the group’s net interest margin narrowed 28 basis points to 1.76 per cent amid lower SGD, HKD and USD benchmark rates. Average interest-earning assets, however, expanded 10 per cent, and customer loans grew 9 per cent YoY to S$347 billion on a constant-currency basis.

Operating expenses rose 6 per cent to S$1.50 billion on higher staff costs and continued technology investment, lifting the cost-to-income ratio slightly to 39.3 per cent. Credit costs were broadly steady at 23 basis points, with total allowances inching up 2 per cent to S$216 million, mainly reflecting prudential overlays for non-impaired assets. The non-performing loan ratio stayed flat at 0.9 per cent and coverage improved to 163 per cent.

On the funding side, customer deposits climbed 10 per cent YoY to S$444 billion, supported by a 13 per cent rise in current- and savings-account balances that pushed the CASA ratio to 50.2 per cent. The common-equity Tier 1 capital adequacy ratio stood at 17.0 per cent under MAS’s phased Basel III reforms, or 15.2 per cent on a fully phased-in basis, giving the group ample headroom for growth.

The bank continued to expand fee-generating businesses. Wealth management income increased 11 per cent to S$1.48 billion, contributing 39 per cent of total income, while assets under management grew 12 per cent to S$342 billion. Sustainable financing loans advanced 17 per cent to S$59.7 billion, accounting for 17 per cent of the loan book.

Management said the quarter’s performance reflected resilient contributions from banking, wealth and insurance operations despite a softer rate environment. Group CEO Tan Teck Long noted that record non-interest income, especially from wealth fees, helped offset margin compression in lending. He added that asset quality “remained sound” even as loans expanded, and highlighted the acquisition of HSBC’s Indonesian wealth business as aligned with OCBC’s “Next Frontier” strategy to deepen its franchise in the region. Tan cautioned that geopolitical tensions and persistent inflation pose risks to the global outlook but expressed confidence that the group’s strong capital, funding and liquidity position would support sustainable growth.