- OCBC (SGX:O39)'s 1Q26 earnings of S$1.97bn were in line with our estimates, at 25% of our FY26e forecast, with record total income of S$3.83bn and ROE of 13.0%. The standout was non-II at a record S$1.61bn (+23% y-o-y), led by WM fees of S$422mil (+34% y-o-y) and insurance income of S$409mil (+34% y-o-y).
- - Read this at SGinvestors.io -
- Trading income grew 10% y-o-y on record customer flow. CIR improved to 39.3%; NPL stable at 0.9% for the 8th consecutive quarter; NPA coverage rose to 163%.
- Management maintained FY26 guidance and reaffirmed completion of the S$2.5bn capital return plan by FY26e (S$1bn buyback remaining). The pending HSBC Indonesia wealth acquisition (~S$6.6bn AUM) reinforces OCBC’s Next Frontier strategy.
The Positives
Wealth management drives record non-II.
- - Read this at SGinvestors.io -
- growth is activity-driven not market-driven, banking AUM was flat q-o-q at S$342bn on softer valuations, but wealth customer flow income grew ~50% y-o-y on transaction volume and hedging demand, and
- insurance NBEV margin expansion to 48.6% (1Q25: 43.1%) reflects a deliberate product mix shift, structural rather than transitional.
- OCBC noted that April momentum has carried over, with the IUL pivot and HSBC Indonesia providing structural support against market volatility risk.
Asset quality stable; conservative GP build for macro risks.
- Read more at SGinvestors.io.
Above is an excerpt from a report by Phillip Securities Research.
Clients of Phillip Capital may be the first to access the full PDF report @ https://www.stocksbnb.com/.
Glenn Thum Phillip Securities Research | https://www.poems.com.sg/ 2026-05-11
Previous report by Phillip:
2026-02-27 OCBC - Wealth Momentum Anchors Earnings Resilience.
Price targets by 4 other brokers at OCBC Target Prices.
Listing of research reports at OCBC Analyst Reports.
Relevant links:
OCBC Share Price History,
OCBC Announcements,
OCBC Dividend Payout Dates & Corporate Actions,
OCBC News
