Oversea-Chinese Banking Corporation Limited Q2 2026 Earnings Recap

OCBC shares rose 5.8% post-earnings, driven by strong broad-based growth in fees, trading, investment, and insurance income that more than offset net interest income headwinds.

Key Takeaways

• Group net profit reached a record SGD 2.2 billion in 2Q26, up 22% year-on-year, with first half net profit up 13% to SGD 4.19 billion.
• Noninterest income grew 51% year-on-year in 2Q, lifted by 28% higher fees, 85% growth in trading and investment income, and 68% increase in insurance income; noninterest income now constitutes 44% of total revenue.
• Net interest income declined 1% year-on-year, pressured by a lower interest rate environment and loan yield compression, with 2Q NIM down 6 basis points quarter-on-quarter to 1.70%.
• Loans and deposits grew robustly by 11% and 13% year-on-year respectively, supporting asset growth that partially offset margin pressures.
• Operating expenses rose 10% year-on-year due to higher performance-related pay and technology investments; nevertheless, cost-to-income ratio improved to 37.8% in 2Q.