OCBC Q1 profit rises 5% to $1.97b on fee gains

Net interest income fell, but wealth-led gains and higher fees lifted total income.

Oversea-Chinese Banking Corporation Limited (OCBC) posted a net profit of $1.97b for the first quarter (Q1) ended 31 March, up 5% from $1.88b a year earlier.

Net interest income fell 5% year on year (YoY) to $2.22b, whilst net interest margin declined to 1.76% from 2.04% a year earlier.

Non-interest income rose 23% to $1.61b, supported by broad-based growth. Fee income increased 24% to $675m, driven mainly by wealth management activities. Trading income rose 10% to $434m, whilst insurance income climbed 34% to $409m.

The wealth management segment also saw continued retail participation in precious metals. The bank reported that new investors in its gold and silver segment tripled month-on-month as at end-January 2026, with sustained inflows into digital trading channels even during periods of price volatility.

Total income rose 5% YoY to $3.83b even whilst operating expenses increased 6% to $1.50b, bringing the cost-to-income ratio to 39.3%, slightly higher than 38.7% a year earlier.

Allowances for loans and other assets totalled $216m, compared with $212m a year ago. Allowances for non-impaired assets accounted for $191m.

The non-performing loan ratio remained unchanged at 0.9%. Total coverage for non-performing assets rose to 163%.

Return on equity was 13.0%, unchanged from a year earlier. Annualised earnings per share rose to $1.76 from $1.68.

The CET1 capital adequacy ratio stood at 17.0% under transitional Basel III rules and 15.2% on a fully phased-in basis.

Customer loans rose 9% YoY to $347b, whilst deposits increased 10% to $444b. The loans-to-deposits ratio stood at 77.2%.

The board declared an interim dividend of 41 cents per share, up from 40 cents a year earlier.