OCBC 3QFY2026 Profit Forecast to Dip 0.6% on Year
CGS International analysts project Oversea-Chinese Banking Corporation's net profit for the quarter ending September 30 at S$1.97 billion, an 11.5% quarter-on-quarter increase.
OCBC's Q3 Profit Outlook
CGS International (CGSI) analysts Tay Wee Kuang and Tan Jie Hui expect Oversea-Chinese Banking Corporation (OCBC) to report a net profit of S$1.97 billion for the third fiscal quarter of 2026, which concluded on September 30. This projection indicates a slight year-on-year decline of 0.6% but a more substantial quarter-on-quarter increase of 11.5%. The Singapore-based banking group's performance is closely watched by investors in the region.
Insurance Subsidiary's Contribution
The anticipated year-on-year dip reflects the analysts' view that OCBC will not benefit from "double-dipping" gains from its insurance subsidiary, Great Eastern Holdings (GEH), this quarter. This absence of a boost stems from a lack of mark-to-market (MTM) gains, both on a year-on-year and quarter-on-quarter basis, which had previously augmented OCBC's results.
Previous Quarter's Performance
In the second fiscal quarter of 2026, OCBC saw significant contributions from GEH. The insurer's new business embedded value (NBEV) grew by 25.2% year-on-year, while its profit from shareholders’ funds surged by 171.8% year-on-year. These strong figures from GEH had provided a substantial uplift to OCBC's overall profitability in the preceding quarter.
CGSI analysts Tay Wee Kuang and Tan Jie Hui maintain a "hold" recommendation on OCBC shares, alongside a higher target price of S$30.40. The forecast suggests that while OCBC's core banking operations may show sequential improvement, the absence of exceptional insurance-related gains could temper overall profit growth compared to the previous year. Investors will be looking for clarity on sustainable earnings drivers beyond one-off contributions.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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