OCBC reported record earnings for the first half of 2026 as strong growth in wealth management, trading, fees and insurance more than offset pressure from lower interest rates. Group net profit increased 13% year-over-year to a record S$4.19 billion, while total income rose 11% to S$8 billion.
A major driver was OCBC’s wealth management franchise. Wealth management income increased 27% to a record S$3.29 billion and represented 41% of total income, compared with 36% a year earlier. Banking wealth management assets under management increased 13% to a record S$350 billion, supported by net new money inflows across all wealth segments.
The wealth management results span OCBC’s private banking, premier private client, premier banking, insurance, asset management and stockbroking operations. Wealth management fees alone increased 39% during the first half, driven by higher customer activity across wealth product channels, and represented 63% of total fee income.
More broadly, non-interest income increased 36% to a record S$3.51 billion and accounted for nearly 44% of total income, up from 36% a year earlier. Net fee income rose 26% to S$1.41 billion, trading income increased 46% to S$1.13 billion, and insurance income from Great Eastern Holdings increased 49% to S$791 million.
These gains helped counter a 3% decline in net interest income to S$4.49 billion as the lower interest rate environment reduced net interest margin by 25 basis points to 1.73%. Average asset volume increased 11%, partially cushioning the margin compression. OCBC’s annualized return on equity improved to 13.7% from 12.6%, while annualized earnings per share increased 14% to S$1.86.
Second-quarter momentum was also strong. Group net profit reached S$2.22 billion, up 22% year-over-year and 12% sequentially. Non-interest income increased 19% from the first quarter to S$1.91 billion, including record quarterly wealth management fees of S$470 million and record trading income of S$695 million.
OCBC continued to expand its balance sheet while maintaining asset quality. Customer loans reached S$364 billion at June 30, up 11% year-over-year on a constant-currency basis, while deposits increased 13% to S$459 billion. The non-performing loan ratio remained at 0.9%. Its Common Equity Tier 1 capital adequacy ratio was 15.7% under transitional final Basel III reforms and 14.0% on a fully phased-in basis.
The board declared a 47-cent interim dividend, up from 41 cents a year earlier. The payout totals S$2.11 billion and represents 50% of first-half group net profit. OCBC also remains committed to completing its previously announced S$2.5 billion capital return by the end of fiscal 2026.
KEY QUOTES:
“Our first half 2026 results reflected strong momentum across our diversified franchise, with Group net profit rising 13% year-on-year to a record S$4.19 billion. Total income grew 11% year-on-year to S$8 billion, underpinned by strong performance across our Banking, Wealth Management and Insurance businesses as we continued to execute our Next Frontier strategy.
We achieved record non-interest income of over S$3.51 billion, which more than offset lower net interest income amid a softer interest rate environment. Wealth management income continued to perform strongly, rising 27% to a record S$3.29 billion.
Looking ahead, global conditions remain uncertain amid geopolitical tensions and elevated inflation risks. Much of the near-term outlook will depend on the easing of Asia’s energy crunch brought about by the war in the Middle East. Meanwhile, AI and related technology sectors continue to register strong growth.”
Tan Teck Long, Group CEO of OCBC
