OCBC Bank shares surged 3% during intraday trading on Friday, hitting a record high after the Singapore lender reported second-quarter earnings that handily beat market expectations.

The rally was fueled by a 22% year-on-year jump in net profit to S$2.22 billion, surpassing the S$1.93 billion average analyst estimate. The strong performance was driven by record non-interest income, which surged 51% to S$1.91 billion, as wealth management fees, trading income, and insurance contributions all posted robust growth. This more than offset a slight decline in net interest income amid a lower interest rate environment.

Adding to the positive sentiment, OCBC raised its full-year loan growth guidance to high-single-digit to low-double-digit, up from a previous mid-single-digit forecast, and lifted its interim dividend by 15% to 47 Singapore cents per share. The bank also reaffirmed its commitment to complete its S$2.5 billion capital return plan by fiscal 2026, further bolstering investor confidence.