OCBC (SGX:O39)’s 1Q26 earning were ahead of MIBG/Street. The Group’s wealth, trading and insurance platforms are enjoying strong cross-synergies and are delivering strongly.
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Heavy lift from non-interest income.
There was strong performance across insurance, trading and fees. The embedded business in insurance is transitioning to higher margin products. This should drive stronger base earnings visibility going forward, in our view.
Separately, 95% of trading income originated from customer flow (45% UOB) showing strong integration with the wealth management franchise. Wealth management showed sustained growth as the efficiencies from earlier integration across entities deliver. We have raised FY26-28E non-interest income by 11-16% as execution becomes more visible.
Net interest income headwinds remain.
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‘Next Frontier’ strategy off to a clear start.
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Above is an excerpt from a report by Maybank Research. Clients of Maybank Securities may be the first to access the full PDF report @ https://www.maybanktrade.com.sg/.
