OCBC Revives 2026 Profit Forecast After 3% Q2 Rise

Autore · Valeria Monti

What happened. Financial performance of OCBC has been impacted by geopolitical situations and changes in energy conditions. The group has revived its 2026 profit forecast, surpassing expectations and maintaining a 3% annual growth rate.

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The risk of war in the East and energy situation influence financial results Bank OCBC has re-launched its forecast for 2026, surpassing expectations and maintaining a annual growth rate of 3%. The company has significantly improved its financial results in the second quarter, with an increase of 3% in net profit. This was mainly due to improvements in bank market performance and real estate markets, but also to the growth of investment activities and resource management. In the third quarter, OCBC registered a 4% increase in after-tax interest margin thanks to higher customer income and high-yield assets.

However, the performance has been damaged by the decline of interest margin for the insurance sector, Great Eastern Holdings, which resulted in a reduction of 18 percentage points in the interest margin. Additionally, OCBC saw significant reductions in income derived from transactions and insurance, leading to losses of $15 million over the past three months. However, excluding this sector, the banking division's net profit increased by 2% up to $1.12 billion, maintaining its record earnings. The group has noted geopolitical developments in Asia and energy situation as influencing factors on their financial results.

In particular, OCBC has continued to monitor the situation in the East and energy conditions, taking into account the evolution of the conflict in the Middle East and current conditions in Indonesia's region. OCBC has raised its projections for 2026, increasing its 2026 growth projection by approximately 10-15%, while continuing to expect annual growth of around 3%. The company predicts that net profits will remain stable or slightly decrease, with expected credits within the range of 15-20 basis points compared to the previous range of 20-25 basis points. In subsequent quarters, OCBC has anticipated an annual growth rate of 10-15% and has predicted that net profits will remain stable or slightly decrease, with expected credits within the range of 15-20 basis points compared to the previous range of 20-25 basis points.

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