OCBC (SGX:O39) posted a solid set of 1Q26 results that are in line, despite bulking up on liquidity and adding provision overlays due to macroeconomic uncertainties arising from the Middle East conflict. These may be released ahead if conditions pan out better than expected, which should be supportive of earnings down the road.
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Results highlights.
Year-on-year PATMI growth momentum accelerated to 5% in 1Q26 – the swiftest pace since 3Q24, thanks to solid operating income growth (+5% y-o-y, +6% q-o-q) and stable asset quality.
Non-II jumped 22-23% y-o-y and q-o-q amid broad-based growth across segments. Wealth fees rose 34% y-o-y, with robust contributions across all wealth product channels on increased customer activities, net trading was up 10% y-o-y (wealth-related activities and corporate hedging demand) while insurance improved 34% y-o-y on underlying performance.
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Lastly, non-performing assets (NPA) declined by 3% q-o-q (+7% y-o-y) on lower new corporate NPA formation and higher recoveries and upgrades. With that, its LLC ticked up to 149% (4Q25: 138%, 1Q25: 147%).
2026 outlook.
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Above is an excerpt from a report by RHB Securities Research. Clients of RHB may be the first to access the full PDF report @ https://www.rhbtradesmart.com/.
