OCBC stock lifts loan outlook after record nine-month profit

OCBC reported record earnings for the first nine months of 2026 on Friday, November 6, as wealth management and wholesale banking offset weaker investment performance at Great Eastern Holdings. In its official results release, the Singapore bank said nine-month net profit rose 10 percent year on year to a record S$6.24 billion.

Record Nine-Month Result

Third-quarter group net profit increased 3 percent year on year to S$2.04 billion. The result was 8 percent below the record second-quarter level because weaker investment performance at Great Eastern offset record profit from banking operations.

Banking operations profit rose 8 percent quarter on quarter to a record S$1.90 billion. Net interest income increased 2 percent from the previous quarter to S$2.31 billion, supported by higher yields and a 3 percent rise in average assets, although higher funding costs weighed on margins.

For the nine-month period, non-interest income rose 19 percent to S$4.93 billion. Net fee income increased 19 percent to S$2.15 billion, while wealth management fees climbed 25 percent to a record S$1.33 billion. Customer-flow trading income rose 40 percent to a record S$1.35 billion, highlighting the contribution from fee-based and client-driven activities.

Loans Drive Guidance Increase

Customer loans reached S$372 billion at September 30, up 14 percent from a year earlier and 3 percent from the previous quarter on a constant-currency basis. Growth was broad-based across geographies and industries, with digital infrastructure, transportation, power and utilities, developed-market real estate, consumer wealth and Singapore mortgages among the stronger areas.

OCBC raised its 2026 loan-growth forecast to the low-double-digit range from its previous high-single-digit to low-double-digit outlook. The bank expects total income to grow by at least a mid-single-digit percentage, while net interest income is expected to remain flat or decline slightly. Credit costs are now expected at 15 to 20 basis points, compared with the previous 20-to-25-basis-point range.

Insurance Volatility Remains

Great Eastern's underlying insurance business remained resilient, with new business embedded value up 14 percent year on year in the third quarter. However, insurance income fell 48 percent from the second quarter as interest-rate movements caused market-driven valuation losses. OCBC said Great Eastern's bond portfolio recorded mark-to-market losses, while equity gains seen in the previous quarter did not recur.

Asset quality provided a counterweight. The non-performing-loan ratio improved to 0.8 percent at September 30, while total allowances declined 9 percent year on year to S$424 million in the first nine months. Customer deposits rose 12 percent to S$461 billion, and the common-equity tier-one capital ratio stood at 15.5 percent.

Market Context And Next Focus

OCBC stock traded at 20.18 euros on Lang & Schwarz at 09:29:32 CET on Thursday, November 12.

Investors will likely focus next on whether loan momentum can support income growth while lower margins and Great Eastern's market-sensitive investment results remain volatile. OCBC's management pointed to geopolitical tensions, inflation risks and Indonesia's market conditions as uncertainties, while identifying artificial intelligence and related technology sectors as areas of continued growth.

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