OCBC (SGX:O39) reported stellar 1Q26 results with growth of 23% y-o-y for non-interest income, powered by wealth management (+34% y-o-y), insurance (+34% y-o-y) and net trading income (+10% y-o-y). Net profit of S$1,974m for 1Q26 (+5% y-o-y and +13% q-o-q), which is above our forecast of S$1,793m.
Net interest income should have bottomed.
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CASA expanded 13% y-o-y. Net interest income declined 5% y-o-y (4Q25: -6% y-o-y).
Fees grew by a hefty 24% y-o-y and 12% q-o-q in 1Q26.
Contribution from wealth management, encompassing private banking, premier private clients and premier banking, increased 34% y-o-y, reflecting sustained efforts to build its franchise, including its whole-of-wealth value proposition.
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Optimising insurance product mix.
Contributions from life and general insurance were S$409m in 1Q26, up 34% y-o-y. Great Eastern (SGX:G07) shifted its product mix towards longer duration product lines that contribute more to long-term profitability. NBEV margin has improved 5.5ppt y-o-y to 48.6%. General insurance has also contributed to the sterling performance.
Wealth flows boosted trading income.
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Above is an excerpt from a report by UOB Kay Hian Research. Clients of UOB Kay Hian may be the first to access the full PDF report @ https://www.utrade.com.sg/.
