OCBC pulls record $6b net profit in 9M despite 8% quarterly dip

It posted a $2b net profit inQ3, up 3% year on year.

Oversea-Chinese Banking Corporation Limited (OCBC) reported a peak net profit of $6.24b for the first nine months (9M26), up 10% year on year (YoY) on 6 November.

The bank attributed the record growth to strong banking operations across wealth management and wholesale banking businesses, as it continued its Next Frontier Strategy.

Third-quarter net profit is up 3% YoY to $2,04b, but fell QoQ by 8% after record banking operations were offset by weaker investment performance from insurance arm Great Eastern Holdings (GEH).

Net Interest Income (NII) inched up 4% YoY and 2% QoQ to $2.31b, supported by loan growth and improved yields, albeit partially offset by higher funding costs, particularly in US rates.

Net Interest Margin is at 1.66%, down by 18 basis points (bps) YoY and 4 bps QoQ, held back by lower interest rates.

Non-Interest Income fell flat by 10% YoY and 26% QoQ, with the quarterly decline attributed to GEH performance.

The bank’s customer loans rose 14% YoY and 3% QoQ to $372b, whilst deposits rose 12% YoY and 1% QoQ to $461b. Non-performing loans (NPL) dipped 0.1 points QoQ and YoY to 0.8%.

Tan Teck Long, CEO of OCBC, raised the bank’s financial guidance despite geopolitical tensions and inflation risks.

“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,” he said.

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