SINGAPORE: Singapore’s Oversea-Chinese Banking Corp (OCBC) on Friday (May 8) flagged heightened macro risks from the war in the Middle East, after posting a 5 per cent rise in first-quarter net profit driven by growth in its wealth business.
OCBC, the country’s second-largest bank, reported a 5 per cent year-on-year rise in its net profit for the January-March period, bolstered by non-interest income, which grew more than 20 per cent from the year-ago period.
However, the lender set aside S$191 million (US$150.51 million) of allowances for non-impaired assets, including additional precautionary buffers to reflect elevated uncertainties in the operating environment, it said in slides accompanying its results.
That compares with S$118 million from the previous year, and a S$36 million write-back in the fourth quarter of 2025.
“Looking ahead, global conditions remain uncertain amid geopolitical tensions and elevated inflation risks,” said OCBC’s Group CEO Tan Teck Long.
“Much of the near-term outlook will depend on how the war in the Middle East, with its impact on energy supply and prices, evolves, while the ongoing trade tariff situation is also being closely monitored.”
For the quarter, net profit of Southeast Asia’s second-largest lender by assets climbed to S$1.97 billion from S$1.88 billion a year earlier.
This beat the mean estimate of around S$1.89 billion from three analysts surveyed by LSEG.
Net interest margin, a key profitability gauge, fell to 1.76 per cent during the quarter from 2.04 per cent a year earlier.
The lender’s fee income for the quarter jumped 24 per cent on-year, led by wealth management fees which rose an annual 34 per cent to S$422 million.
OCBC, which counts Singapore, greater China, Indonesia and Malaysia among its key markets, maintained 2026 outlook guidance.
Its results rounded up a resilient first-quarter earnings season for Singapore banks, with wealth and fee income helping cushion pressure from lower interest rates and an uncertain global backdrop.
Larger peer DBS Group last week reported stronger first-quarter earnings that beat analysts’ forecasts, while smaller rival United Overseas Bank on Thursday posted better-than-expected but weaker results.
Earlier this week, OCBC announced it has agreed to buy certain assets and liabilities of HSBC’s wealth and premier banking portfolio in Indonesia, marking the first major deal under Tan since he took over in January.
