OCBC shareholders to receive 47-cent interim dividend as Q2 profit jumps 22% to $2.22 billion
Strong non-interest income led by wealth management cushioned the impact from lower interest rates.
OCBC Bank announced a 22% increase in its net profit for the second quarter of 2026, reaching $2.22 billion. Strong non-interest income, particularly from wealth management, helped offset the effects of lower interest rates. The bank declared an interim dividend of 47 cents per share, up from 41 cents in the previous year, which amounts to an estimated $2.11 billion in payouts, roughly 50% of its net profit after tax for the first half.
Net interest income declined 1% to $2.26 billion due to a lower interest-rate environment, while net interest margin dropped to 1.70% from 1.92% a year ago. However, non-interest income surged 51% to $1.91 billion, driven by robust growth in fees, trading, and insurance income. OCBC's CEO Tan Teck Long acknowledged global uncertainties due to geopolitical tensions and inflation risks, but highlighted the bank's strong capital, diversified income streams, and disciplined risk management as positioning it well to navigate challenges and capitalize on growth sectors.
The bank updated its 2026 targets, expecting high-single-digit to low-double-digit loan growth and overall income growth. OCBC plans to launch Southeast Asia's first AI-native mobile banking app and hire 600 additional relationship managers for its consumer banking business. DBS Bank reported a 9% increase in net profit to $3.08 billion in the same period, driven by record wealth management income, while OCBC and UOB also presented their earnings on August 7.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
