OCBC Reports 22% Profit Increase, Declares 47-Cent Interim Dividend

SINGAPORE – OCBC Bank has reported a net profit of $2.22 billion for the second quarter of 2026, reflecting a 22% increase from $1.82 billion in the same period last year. This performance surpassed analysts' expectations, who had forecasted a profit of $1.91 billion, according to a Bloomberg poll.

The bank declared an interim dividend of 47 cents per share, up from 41 cents a year ago, which will amount to approximately $2.11 billion, or about 50% of the group’s net profit after tax of $4.19 billion for the first half of the year.

OCBC's net interest income saw a slight decline of 1% to $2.26 billion, attributed to a lower interest-rate environment, with the net interest margin falling to 1.70%. However, this decline was offset by a 12% growth in average assets. The bank's non-interest income surged by 51% to $1.91 billion, driven by strong performance across fee, trading, and insurance income. Fees increased by 28%, trading income rose by 85%, and insurance income jumped by 68%.

Total allowances for impaired assets rose to $156 million, compared to $114 million in the previous year. Tan Teck Long, OCBC's group chief executive, highlighted the uncertain global conditions, particularly due to geopolitical tensions and inflation risks, noting that the near-term outlook is contingent on the resolution of energy supply issues in Asia stemming from the conflict in the Middle East.

“The bank is well-positioned to navigate uncertainties and tap the growth sectors to deliver sustainable long-term value, with its strong capital, funding and liquidity position, as well as diversified income streams and disciplined risk management.”Tan Teck Long, Group Chief Executive, OCBC

Tan also pointed out the ongoing growth in artificial intelligence and related technology sectors, stating that the bank is well-positioned to navigate uncertainties and tap the growth sectors to deliver sustainable long-term value, with its strong capital, funding and liquidity position, as well as diversified income streams and disciplined risk management.

OCBC has updated its financial targets for 2026, now projecting high-single-digit to low-double-digit loan growth, an increase from previous expectations of mid-single-digit growth. The bank anticipates total income growth, adjusting its outlook from stable-to-growing total income to a slight decline in net interest income, previously expected to be a slight-to-moderate decline. Credit costs are still expected to remain within the range of 20 to 25 basis points.

In a competitive banking landscape, Singapore banks are aggressively expanding in the wealth management sector. OCBC recently announced plans to launch what it claims will be Southeast Asia’s first AI-native mobile banking app, featuring two virtual avatars designed to provide personalized wealth management insights to customers around the clock. To bolster its wealth management capabilities, the bank plans to hire 600 additional relationship managers over the next three years.

OCBC's strong performance follows similar results from its competitors, with DBS Group reporting a 9% increase in net profit to $3.08 billion for the same quarter, driven by record wealth management income. DBS declared dividends of 81 cents per share, reflecting the competitive dynamics within the Singapore banking sector.