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Investing.com-- OCBC (SGX:OCBC) clocked a stronger-than-expected jump in its second quarter net profit on Friday, as strength in the Singaporean bank’s trading and wealth management operations offset the impact of softer interest rates.
Shares of Singapore’s second-largest bank by market capital jumped 2.5% to a record high of S$30.18. They are trading up 51% so far in 2026.
Net profit for the three months to June 30 rose 22% year-on-year to S$2.22 billion ($1.73 billion), OCBC said in a statement. The print was higher than Bloomberg estimates of S$1.95 billion.
Net interest income fell 1% year-on-year to S$2.26 billion, with the bank attributing softer local interest rates for the drop. But non-interest income surged 51% year-on-year to S$1.91 billion.
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Fees and commissions, trading income, and insurance-related income all rose sharply in the quarter.
OCBC declared an interim dividend of 47 cents per share, up from 41 cents a year ago.
OCBC CEO Tan Teck Long said global conditions remained uncertain amid rising geopolitical tensions and higher inflation risks.
“Much of the near-term outlook will depend on the easing of Asia’s energy crunch brought about by the war in the Middle East. Meanwhile, AI and related technology sectors continue to register strong growth,” Long said.
OCBC is among Southeast Asia’s biggest banks, and is broadly considered as a bellwether for the regional economy.
Other major Singaporean banks-- DBS Group (SGX:DBSM) and United Overseas Bank Ltd (SGX:UOBH)-- also clocked strong second-quarter earnings this week.
