OCBC (SGX:O39)'s record total income and non-interest income during 1Q26 – led by strong wealth management income growth (+34% y-o-y, +16% q-o-q), record customer flow treasury income (Wealth + Wholesale bank) and strong increase in insurance income, good customer loans growth +2% q-o-q and deposit growth +4% q-o-q.
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Asset quality remains benign with GP reserve build of S$191m during 1Q26; 2026 guidances maintained.
Takeaways from 1Q26 briefings
Wealth:
Net new monies for 1Q26 at +S$5bn (FY25: +S$29bn). Continue to see 70% growth in many categories in Hong Kong as Hong Kong has catchment of Greater Bay across affluent (not just HNWs) segments. Split of customer treasury flow leans more towards wealth (~60%) than corporates (~40-50%).
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Treasury customer flows:
OCBC has been growing the treasury flows using treasury products and have been building up the business. Currently, there is very good talent bench strength and customer flow has been growing higher and higher.
Management believes they can continue to sustain growth and have onboarded some talent in various products and sales as product capability will help drive flow of front facing businesses, particular in wealth businesses. Management will continue to add resources and believe that treasury income will continue to grow, led by both wealth and non-wealth customer flows.
Split of customer treasury flow leans more towards wealth (~60%) than corporates (~40-50%). Customer flow +35% y-o-y, wealth customer flows grew ~50% y-o-y while corporates grew 20+% y-o-y.
Net interest income/ NIM:
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Above is an excerpt from a report by DBS Group Research. Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.
