Singapore's Oversea-Chinese Banking Corp (OCBC) reported a 5 per cent rise in first-quarter net profit driven by growth in its wealth business, but set aside S$191 million of allowances for non-impaired assets due to heightened macro risks and geopolitical tensions. The lender's net interest margin fell to 1.76 per cent during the quarter from 2.04 per cent a year earlier, while fee income jumped 24 per cent on-year.
Add CNA as a trusted source to help Google better understand and surface our content in search results. SINGAPORE: Singapore 's Oversea-Chinese Banking Corp on Friday flagged heightened macro risks from the war in the Middle East, after posting a 5 per cent rise in first-quarter net profit driven by growth in its wealth business.
OCBC, the country's second-largest bank, reported a 5 per cent year-on-year rise in its net profit for the January-March period, bolstered by non-interest income, which grew more than 20 per cent from the year-ago period. However, the lender set aside S$191 million of allowances for non-impaired assets, including additional precautionary buffers to reflect elevated uncertainties in the operating environment, it said in slides accompanying its results.
That compares with S$118 million from the previous year, and a S$36 million write-back in the fourth quarter of 2025.
"Looking ahead, global conditions remain uncertain amid geopolitical tensions and elevated inflation risks," said OCBC's Group CEO Tan Teck Long. "Much of the near-term outlook will depend on how the war in the Middle East, with its impact on energy supply and prices, evolves, while the ongoing trade tariff situation is also being closely monitored. " For the quarter, net profit of Southeast Asia's second-largest lender by assets climbed to S$1.97 billion from S$1.88 billion a year earlier.
Net interest margin, a key profitability gauge, fell to 1.76 per cent during the quarter from 2.04 per cent a year earlier. The lender's fee income for the quarter jumped 24 per cent on-year, led by wealth management fees which rose an annual 34 per cent to S$422 million. OCBC, which counts Singapore, greater China, Indonesia and Malaysia among its key markets, maintained 2026 outlook guidance.
Its results rounded up a resilient first-quarter earnings season for Singapore banks, with wealth and fee income helping cushion pressure from lower interest rates and an uncertain global backdrop. Earlier this week, OCBC announced it has agreed to buy certain assets and liabilities of HSBC's wealth and premier banking portfolio in Indonesia, marking the first major deal under Tan since he took over in January.
We know it's a hassle to switch browsers but we want your experience with CNA to be fast, secure and the best it can possibly be.
Oversea-Chinese Banking Corp Singapore Macro Risks Middle East War Inflation Risks Geopolitical Tensions Energy Supply Trade Tariff Situation Net Profit Net Interest Margin Fee Income Wealth Management Fees Outlook Guidance
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Paul McCartney's first-ever duet with Ringo Starr to release on May 8Paul McCartney's first-ever duet with Ringo Starr will be released on Friday (May 8).The 83-year-old music icon has revealed that he's recorded a duet with Ringo, his former Beatles bandmate, called Home to Us, and the track is set to be released later this week.Speaking about Home to Us, Paul said: 'Ringo went round to the studio and drummed a...
Read more »
LVMH Explores Major Asset Sales in Rare Retrenchment Amid Luxury SlowdownLVMH is selling underperforming brands across fashion, beauty, and wine divisions as it refocuses on core profit drivers like Louis Vuitton and Dior. The luxury giant, led by Bernard Arnault, is undergoing a rare downsizing phase amid declining demand and economic pressures.
Read more »
Nightclub Waitress Jailed for Selling Vapes, Drug Use, and TheftA 26-year-old nightclub waitress was sentenced to a year and seven weeks in jail for selling vapes, consuming methamphetamine, shop theft, and violating foreign manpower regulations. She advertised vapes on WhatsApp and Telegram, making around $100 in profit before her arrest in March 2021.
Read more »
UOB Reports 4 Percent Drop in First Quarter Net ProfitUnited Overseas Bank reported a 4 percent annual decline in first-quarter net profit to 1.44 billion dollars, beating analyst expectations despite facing rate headwinds and a cautious market sentiment.
Read more »