Singapore's second-largest bank, Oversea-Chinese Banking Corp, beat analyst forecasts in Q1, reporting a 5% year-on-year rise in net profit to S$1.97 billion, driven by a 20% increase in non-interest income and a 24% jump in fee income. Wealth management fees surged 34% to S$422 million, underscoring a strong performance in its private banking business.
Despite the earnings beat, OCBC set aside S$191 million in allowances for non-impaired assets, up from S$118 million a year ago, citing heightened uncertainties from the Middle East conflict and ongoing tariff tensions. CEO Tan Teck Long cautioned that global conditions remain volatile, with the war's impact on energy supply and prices a key near-term risk.
The bank's net interest margin narrowed to 1.76% from 2.04% a year earlier, reflecting the lower interest rate environment. OCBC maintained its 2026 outlook guidance. The results cap a resilient first quarter for Singapore banks, with wealth and fee income offsetting margin pressure.
Earlier this week, OCBC agreed to acquire certain wealth and premier banking assets from HSBC in Indonesia, Tan's first major deal since taking the helm in January.