OCBC third-quarter net profit up 3% on-year, above forecasts

Singapore's Oversea-Chinese Banking Corp (OCBC) reported a 3% increase in net profit for the third quarter, surpassing market expectations, despite challenges in its insurance division. The bank's financial performance for July-September saw a net profit of S$2.04 billion, up slightly from S$1.98 billion the previous year. Net interest income grew by 4% due to increased loans and quality assets.

However, weak investment performance of the insurance arm, Great Eastern Holdings, negatively impacted the results. Trading and insurance income saw declines of 10% and 37% year-over-year, respectively. Despite this, OCBC's customer trading income rose by 29% from a year earlier. The bank's wealth management income, which includes income from private banking, asset management, and stockbroking, declined by 25% due to the insurance division's underperformance.

Excluding Great Eastern, the bank's wealth management income hit a record high of S$1.12 billion. OCBC has raised its 2026 loan growth forecast to low double-digit, from a previous projection of high-single to low-double-digit growth. The bank is also monitoring market conditions in the Middle East, Indonesia, and energy markets.