Singapore, 8 May 2026 – Oversea-Chinese Banking Corporation Limited ("OCBC") reported net profit of SGD1.97 billion ($1.46 billion) for the first quarter of 2026 ("1Q26"), 5% above SGD1.88 billion ($1.39 billion) a year ago ("1Q25") and 13% higher than SGD1.74 billion ($1.29 billion) in the previous quarter ("4Q25").

The group's solid 1Q26 performance was underpinned by record non-interest income, led by strong growth in wealth management. Non-interest income was up by more than 20% from the previous year and the prior quarter, with broad-based increase across fee, trading and insurance income. Total income rose by 5% year-on-year and 6% quarter-on-quarter to a new high. Operating expenses were well managed, with cost-to-income ratio ("CIR") below 40%. Loans and deposits were higher, supported by continued momentum in strategic growth areas. Asset quality remained sound with non-performing loan ("NPL") ratio steady at 0.9%.

Given the heightened risks in the macroeconomic environment, the group prudently set aside SGD191 million ($141 million) of allowances for non-impaired assets. Total allowance coverage for non-performing assets ("NPAs") increased to 163%. The group's capital, funding and liquidity profile remained strong, positioning the group well to pursue growth and navigate uncertainties. On an annualised basis, earnings per share was higher at SGD1.76 ($1.30) and ROE stood at 13.0%.

1Q26 Performance Highlights

Group net profit: SGD1.97 billion ($1.46 billion) | +5% YoY | +13% QoQ

Total income was SGD3.83 billion ($2.83 billion), up 5% year-on-year and 6% quarter-on-quarter. Net interest income was SGD2.22 billion ($1.64 billion), down 5% year-on-year and 3% quarter-on-quarter. Non-interest income was SGD1.61 billion ($1.19 billion), up 23% year-on-year and 22% quarter-on-quarter. Operating expenses were SGD1.50 billion ($1.11 billion), up 6% year-on-year and down 4% quarter-on-quarter. Net interest margin was 1.76%, down 28 basis points year-on-year and 10 basis points quarter-on-quarter. Credit costs were 23 basis points, down 1 basis point year-on-year and up 3 basis points quarter-on-quarter. Customer loans were SGD347 billion ($257 billion), up 9% year-on-year and 2% quarter-on-quarter on a constant currency basis. Customer deposits were SGD444 billion ($328 billion), up 10% year-on-year and 4% quarter-on-quarter. NPL ratio was unchanged at 0.9%. CET1 CAR was 17.0% on a transitional final Basel III reforms basis and 15.2% on a fully phased-in basis. ROE (annualised) was 13.0% and EPS (annualised) was SGD1.76 ($1.30), up 5% year-on-year and 16% quarter-on-quarter.

First Quarter 2026 Performance

Group net profit increased 5% to SGD1.97 billion ($1.46 billion), underpinned by record non-interest income.

• Net interest income declined by 5% to SGD2.22 billion ($1.64 billion), amid a lower interest rate environment. A drop in asset yields was partly mitigated by lower funding costs and a 10% growth in average assets. Net interest margin ("NIM") was 1.76%, 28 basis points below the previous year.
• Non-interest income rose 23% to SGD1.61 billion ($1.19 billion) and comprised more than 40% of total income.
• Net fee income grew 24% to SGD675 million ($499 million) on broad-based growth. Wealth management fees increased by 34% with robust contributions across all wealth product channels on increased customer activities. Investment banking, trade-related and loan-related fees were also higher compared to the previous year.
• Net trading income rose 10% to SGD434 million ($321 million). This was largely driven by a 35% growth in customer flow income to a record high, from sustained momentum in wealth-related activities and hedging demand from corporate customers.
• Insurance income improved by 34% to SGD409 million ($303 million), supported by robust insurance performance and a release in reserves reflecting positive experience and strong underlying fundamentals. Total weighted new sales ("TWNS") and new business embedded value ("NBEV") grew by 16% and 31% respectively. This was driven by improving sales and a strategic shift in product mix, with NBEV margin rising from 43.1% in the previous year to 48.6%.
• The group's wealth management income, comprising income from private banking, premier private client, premier banking, insurance, asset management and stockbroking, was SGD1.48 billion ($1.10 billion), up 11% year-on-year and contributed 39% to the group's total income, higher as compared to 37% in the previous year. Banking wealth management AUM was SGD342 billion ($253 billion), up 12% from SGD306 billion ($226 billion) a year ago, driven by net new money inflows across all wealth segments.
• Operating expenses were SGD1.50 billion ($1.11 billion), 6% above 1Q25, mainly due to increased staff cost to support business growth and continued IT investments. CIR was 39.3%, slightly higher than 38.7% a year ago.
• Total allowances increased 2% to SGD216 million ($160 million), largely due to higher allowances for non-impaired assets being set aside.
• Share of results of associates rose by 14% to SGD312 million ($231 million).

1Q26 Quarter-on-Quarter Performance

Group net profit was 13% higher than the previous quarter, underpinned by record total income and lower expenses.

• Net interest income of SGD2.22 billion ($1.64 billion) was 3% below 4Q25, largely due to lower benchmark rates for SGD, HKD and USD and the effect of a comparatively shorter quarter. On a day-adjusted basis, net interest income was a notch lower by 1%. The impact of lower interest rates was partly compensated by a decline in deposit costs and a 4% growth in average assets, driven by 3% average loan growth and a 7% rise in high-quality assets. NIM was 10 basis points lower at 1.76%, which reflected loan yield compression and the strategic growth in income-accretive high-quality assets.
• Non-interest income was 22% higher at SGD1.61 billion ($1.19 billion), driven by double-digit growth across fee, trading and insurance income, underscoring the strength of the group's diversified franchise.
• Operating expenses were 4% lower compared to 4Q25, mainly attributable to higher technology costs incurred in the previous quarter.
• Total allowances of SGD216 million ($160 million), which mostly comprised allowances for non-impaired assets, were 8% higher as compared to SGD200 million ($148 million) in the prior quarter.
• Share of results of associates was SGD312 million ($231 million), 20% above 4Q25.

Asset Quality and Allowances

As at 31 March 2026, total NPAs were SGD3.12 billion ($2.31 billion), 7% higher than a year ago, with the NPL ratio unchanged at 0.9% and total NPA coverage at 163%, up from 162% a year ago and 151% in the prior quarter. Compared to the prior quarter, NPAs declined by 4%. New corporate NPA formation was SGD123 million ($91 million) for 1Q26, lower as compared to SGD399 million ($295 million) in 4Q25 and was more than offset by higher net recoveries and upgrades. NPL ratio was unchanged for eight consecutive quarters at 0.9% and total NPA coverage increased to 163%.

• Total allowances for loans and other assets were SGD216 million ($160 million), which comprised:
• Allowances for impaired assets of SGD25 million ($18.5 million), substantially lower than 4Q25 and the previous year; and
• Allowances for non-impaired assets of SGD191 million ($141 million), which included additional management overlays set aside to reflect the elevated uncertainties in the operating environment.
• Total credit costs for 1Q26 were 23 basis points on an annualised basis.

Strong Funding, Liquidity and Capital Position

As at 31 March 2026, customer loans were SGD347 billion ($257 billion), 9% higher than the previous year and up 2% from a quarter ago, on a constant currency basis.

• On a quarter-on-quarter basis, loan growth was broad-based across industries and by geography it was mainly driven by Singapore, Malaysia and the group's international markets.
• Sustainable financing loan portfolio grew 17% from a year ago to SGD59.7 billion ($44.2 billion) and comprised 17% of group loans, while total commitments were SGD83.0 billion ($61.4 billion).
• Customer deposits rose 10% year-on-year to SGD444 billion ($328 billion), largely driven by a 13% growth in CASA deposits, with CASA ratio improving to 50.2%. Compared to the previous quarter, customer deposits grew 4%, with CASA deposits rising 3%.
• Loans-to-deposits ratio was 77.2%, compared to 78.6% a quarter ago.
• The group's CET1 CAR is subject to MAS' final Basel III reforms requirements which came into effect on 1 July 2024 and are being progressively phased in between 1 July 2024 and 1 January 2029. group CET1 CAR as at 31 March 2026 was 17.0% and on a fully phased-in basis it was 15.2%.

Message from group chief executive officer, Tan Teck Long

"We delivered a good start to 2026, with group net profit rising 5% year-on-year to SGD1.97 billion ($1.46 billion), underpinned by resilient performance across Banking, Wealth Management and Insurance as we execute our Next Frontier strategy.

We achieved a new high for non-interest income, led by our wealth business, which helped us offset lower net interest income amid a low-interest rate environment. Our wealth fees grew 34% year-on-year to hit SGD422 million ($312 million).

Even as we sustained our loan growth at 9% year-on-year, asset quality remained sound, underscoring the resilience of our portfolio amid a more challenging macroeconomic climate.

Against this backdrop, we continued to make disciplined strategic investments to strengthen our long-term growth engines. The acquisition of HSBC's wealth business in Indonesia fits well into our Next Frontier strategy under the Franchise Shift of building up our wealth business in Indonesia. It is a high-quality portfolio with significant assets under management (AUM), including deposits with sizeable CASA balances. The portfolio is highly complementary to our existing Indonesia franchise, with clear synergies across customers and capabilities.

Looking ahead, global conditions remain uncertain amid geopolitical tensions and elevated inflation risks. Much of the near-term outlook will depend on how the war in the Middle East, with its impact on energy supply and prices, evolves, while the ongoing trade tariff situation is also being closely monitored.

With our strong capital, funding and liquidity position, diversified income streams and disciplined risk management, we are well positioned to navigate uncertainties and deliver sustainable long-term value."

Financial Highlights (unaudited)

Selected income statement items for 1Q26: net interest income SGD2,222 million ($1,644 million), down 5% year-on-year and 3% quarter-on-quarter; non-interest income SGD1,606 million ($1,188 million), up 23% and 22% respectively; total income SGD3,828 million ($2,833 million), up 5% and 6%; operating expenses SGD1,505 million ($1,114 million), up 6% year-on-year and down 4% quarter-on-quarter; operating profit before allowances and amortisation SGD2,323 million ($1,719 million), up 4% and 13%; profit before income tax SGD2,414 million ($1,786 million), up 5% and 14%; net profit attributable to equity holders SGD1,974 million ($1,461 million), up 5% and 13%.

Selected balance sheet items as at 31 March 2026: ordinary equity SGD62,006 million ($45,884 million); total assets SGD703,124 million ($520,312 million); net loans to customers SGD342,756 million ($253,639 million); deposits of non-bank customers SGD443,808 million ($328,418 million).

Key financial ratios for 1Q26: return on equity 13.0% (annualised); return on assets 1.37% (annualised); net interest margin 1.76% (annualised); non-interest income to total income 41.9%; cost-to-income 39.3%; loans-to-deposits 77.2%; NPL ratio 0.9%; Common Equity Tier 1 capital adequacy ratio 17.0%; Tier 1 capital adequacy ratio 17.7%; total capital adequacy ratio 19.7%; leverage ratio 7.0%; all-currency liquidity coverage ratio 138%; net stable funding ratio 113%. Basic and diluted earnings per share (annualised) were SGD1.76 ($1.30). Net asset value per share was SGD13.82 ($10.23).

Re-disseminated by The Asian Banker