Oversea-Chinese Banking Corporation (O39) investor relations material

Executive summary

• Net profit for 1H26 reached a record S$4.19 billion, up 13% year-over-year, with 2Q26 net profit up 22% year-over-year to S$2.22 billion; ROE annualized at 14.4% for Q2 and 13.7% for H1.

• Total income for 2Q26 was S$4.17 billion (+18% YoY), and for 1H26 S$8.00 billion (+11% YoY), driven by a 36% surge in non-interest income and robust wealth management and insurance growth.

• Wealth management income hit a record S$3.29 billion in H1, up 27% YoY, now 41% of total income; insurance profit contribution up 44%.

• Interim dividend of 47 cents per share declared, up 15% YoY, representing a 50% payout ratio.

• Asset quality remained robust with NPL ratio stable at 0.9% and allowance coverage at 163%.

Financial highlights

• Net interest income for 1H26 was S$4.49 billion, down 3% YoY; NIM compressed by 25bps to 1.73%.

• Non-interest income rose 36% YoY in H1 to S$3.51 billion, with fee income up 26%, trading income up 46%, and insurance income up 49%.

• Cost-to-income ratio improved to 37.8% in Q2 and 38.5% in H1.

• Customer loans grew 11% YoY to S$364 billion; deposits up 13% YoY to S$459 billion.

• Annualised EPS rose 14% to S$1.86; net asset value per share increased to S$13.73.

Outlook and guidance

• Full-year loan growth guidance raised to high single digit to low double digit; total income expected to grow, with a slight decline in net interest income.

• Cost-to-income ratio guided at low 40% range; credit costs expected at lower end of 20-25bps.

• NIM expected to stabilize in H2 as SORA strengthens; management expects no material impact from new accounting standards in 2027.

• Commitment to complete S$2.5 billion capital return plan by FY26.

• Management highlights ongoing global uncertainties, including geopolitical tensions and inflation risks.