OCBC Q3 Net Profit Climbs 3% to S$2.04 Billion on Trading Gains
Singapore's OCBC Bank reported record customer flow trading income of S$480 million, despite a 10 per cent drop in non-interest income from its insurance unit, Great Eastern.
OCBC Posts S$2.04 Billion Net Profit
OCBC Bank recorded a 3 per cent increase in net profit for the third quarter, reaching S$2.04 billion. This performance surpassed the S$2 billion consensus forecast from a Bloomberg survey of analysts. The Singaporean lender attributed the rise to stronger banking operations, including a record S$480 million in customer flow trading income, which grew 29 per cent.
Wealth management fees also contributed, rising 3 per cent to S$442 million, marking the second-highest quarter on record.
Great Eastern Weighs on Non-Interest Income
Despite overall gains, OCBC's non-interest income decreased by 10 per cent to S$1.42 billion. This was primarily due to weaker investment performance by its insurance arm, Great Eastern, which recorded mark-to-market losses on its shareholders’ fund bond portfolio.
OCBC Group Chief Financial Officer Goh Chin Yee noted these losses stemmed from rising interest rates, contrasting with investment gains in the prior period. However, Great Eastern's new business embedded value grew 14 per cent year-on-year to S$208 million, driven by strong sales in Singapore.
Wealth Clients Seek Lower Risk, Guidance Raised
OCBC observed its wealth clients shifting towards lower-risk investment products during Q3 amid market volatility, according to Group CEO Tan Teck Long. This client behaviour supported the bank's customer flow trading income. For 2026, OCBC upgraded its financial guidance, now expecting loan growth in the low double digits.
The bank also forecasts total income to expand by at least a mid-single-digit percentage, with net interest income seeing a flat to slight decline. Credit costs are projected to be lower, between 15 and 20 basis points.
Regional Growth and Strategic Focus
Looking ahead to 2027, CEO Tan anticipates continued growth, driven by the bank's “Next Frontier” strategy across Singapore, Hong Kong, Malaysia, and Indonesia. Malaysia is identified as a key market, benefiting from global supply chains in semiconductors and technology, alongside data centre growth.
OCBC plans to pivot its Malaysian business towards wealth management, expecting cross-selling opportunities with Great Eastern. Indonesia contributed approximately 5 per cent to OCBC's Q3 operating profits, showing double-digit growth in its loan book and assets.
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.
Comments.
Comments are moderated. We remove what is unlawful, abusive or off-topic, and and you remain responsible for what you post.
Reader comments open soon. Until then, corrections and responses go to our newsroom, and we publish what we get wrong on Corrections.