Singapore's OCBC Posts Higher Second-Quarter Net Profit

By Megan Cheah

SINGAPORE--Oversea-Chinese Banking Corp., Southeast Asia's second-largest lender by assets, reported higher second-quarter net profit, boosted by stronger noninterest income.

Group net profit for the three months ended June rose 22% from the same period a year earlier to 2.22 billion Singapore dollars, equivalent to $1.73 billion, the lender said Friday.

Total income increased 18% on year to S$4.17 billion.

Net interest income -- the difference between what banks earn on loans and pay on deposits -- slipped 1.0% to S$2.26 billion, OCBC said.

Net interest margin declined 22 basis points to 1.70% amid a lower interest rate environment, although this was partly cushioned by a 12% growth in average assets.

The fall in net interest income was more than offset by noninterest income rising 51% from a year earlier to S$1.91 billion, thanks to strong broad-based growth across fee, trading and insurance income.

The lender declared an interim dividend of S$0.47 a share, compared with S$0.41 a year ago.

"Looking ahead, global conditions remain uncertain amid geopolitical tensions and elevated inflation risks," said Group Chief Executive Tan Teck Long, noting Asia's energy crunch driven by the Middle East conflict.

He expects the lender's strong capital, funding and liquidity position to be among factors positioning OCBC to navigate such uncertainties.

OCBC's shares have been on a tear recently, spurred by prospects of a Federal Reserve interest-rate hike and resilient earnings. The stock last ended at S$29.33 and is about 49% higher this year, having notched a streak of record highs last month.

Local banking rivals DBS Group and United Overseas Bank also posted higher second-quarter earnings on Thursday and Friday, respectively.

Write to Megan Cheah at megan.cheah@wsj.com

(END) Dow Jones Newswires

August 06, 2026 19:28 ET (23:28 GMT)