Oversea-Chinese Banking Corp. posted a 3% increase in net income to S$2.04 billion ($1.6 billion) for the third quarter ended Sept. 30, exceeding analyst estimates of S$2 billion. Chief Executive Officer Tan Teck Long raised the 2026 loan growth projection to a low double-digit percentage, while estimating total income growth of at least a mid-single digit. Net interest income may come in flat or decline slightly, with credit costs seen at 15-20 basis points. Banking wealth management assets rose 7% to S$358 billion, and fees from the business were 3% higher at S$442 million.
OCBC's shares were little changed in early trade after falling as much as 2.1% following the results. The bank flagged geopolitical tensions and elevated inflation risks, citing the war in the Middle East as a key uncertainty for the near-term outlook. Indonesia, a major market, is being closely monitored after MSCI warned it may remove the nation's equities from global indexes. Tan maintained the bank's 50% ordinary dividend payout ratio and aimed to complete the S$2.5 billion capital return plan by the current financial year.
The results capped Singapore banks' earnings, with DBS Group reporting a 5% drop in net income and UOB's profit rebound overshadowed by an estimate miss. OCBC's shares have risen the most among local rivals this year.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing