OCBC, UOB post higher Q2 profit on stronger fee income

Singapore's Oversea-Chinese Banking Corp (OCBC) achieved a quarterly record net profit of S$2.22 billion in the second quarter, surpassing analyst expectations with a 22% year-on-year increase. This strong performance was fueled by robust fee, trading, and insurance income, which compensated for pressure on net interest margins.

“

the bank's strong capital, funding and liquidity position would support growth while providing a buffer against uncertainty.

Building on this success, OCBC has revised its 2026 loan growth forecast upward, now anticipating high-single-digit to low-double-digit expansion, a notable increase from its previous mid-single-digit projection. The bank also reaffirmed its commitment to a 50% ordinary dividend payout ratio and its S$2.5 billion capital return plan by the end of 2026.

Despite global economic uncertainties, including the evolving Middle East conflict and K-shaped economic growth across major economies, OCBC CEO Tan Teck Long expressed confidence in the bank's strong capital, funding, and liquidity position to support growth and buffer against volatility. The bank's net interest margin did decline to 1.70% from 1.92% a year prior, but this was effectively managed through diversified income streams.

“

We are seeing good progress across our businesses as we deepen customer relationships, expand our capabilities and connect customers to opportunities across our regional network.

OCBC's strong results mirror those of its Singaporean peers. UOB reported a 10% rise in second-quarter net profit to S$1.5 billion, largely due to record wealth fees. Larger rival DBS Group also posted a record 9% increase in its second-quarter net profit. These performances underscore the resilience and strategic positioning of Singapore's banking sector in the region.

“

Looking ahead, we see significant opportunities to grow wealth, support cross-border ambitions and capture a larger share of trade and investment flows across ASEAN.