OCBC Raises 2026 Outlook as Third-Quarter Profit Rises 3%
Oversea-Chinese Banking reported a 3% rise in third-quarter net profit and lifted parts of its 2026 guidance, while its shares slipped in early trade, per Update.
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what happened
Oversea-Chinese Banking Corp. (OCBC) has lifted its 2026 guidance after reporting higher net profit for the third quarter, according to Update. Group Chief Executive Tan Teck Long made the comments on a Friday earnings call. The bank now expects loan growth in the low double digits, up from its earlier range of high single digits to low double digits. It also sees total income rising by at least the mid single digits, and net interest income holding flat or easing slightly. Its previous forecast had assumed a slight decline with no changes to Federal Reserve rates.
Net profit for the three months to September came to S$2.04 billion (US$1.60 billion), up 3% from a year earlier. Total income fell 2% to S$3.73 billion. Net interest income climbed 4% to S$2.31 billion, though net interest margin shrank 18 basis points to 1.66% as rates declined. Noninterest income dropped 10% to S$1.42 billion, mainly because the insurance arm Great Eastern Holdings posted weaker investment returns.
OCBC shares dipped as much as 2.1% to S$27.35 in early trading and recovered to about a 1% loss by midday. The results closed out reporting for Singapore's three largest banks. DBS posted a bigger-than-expected drop in profit, while UOB's profit nearly tripled on much lower provisions but declined from the prior quarter.
why it matters
Singapore bank stocks have pulled back in recent weeks after a run of record highs, as investors question whether the strong profitability seen earlier this year can last. Macquarie analyst Jayden Vantarakis remains upbeat on the sector, pointing to gradually rising rates and durable wealth management trends. OCBC is also watching Indonesia, where MSCI has warned it could move the country to standalone status. The bank says the legal completion of its HSBC Indonesia wealth and retail acquisition is set for May 2027.
market impact
Singapore banks: profit growth and guidance support the sector, but weaker income keeps OCBC shares under pressure
tags
instruments
sources
- OCBC Lifts 2026 Guidance, Posts Higher Third-Quarter Profit — Update, 6 November 2026 at 03:22 UTC
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