OCBC Q1 Profit Rises 5% on Strong Wealth Management and Non-Interest Income

Singapore banking giant Oversea-Chinese Banking Corp (OCBC) reported a 5% increase in first-quarter net profit, supported by record non-interest income and strong growth in its wealth management business. The solid performance helped offset weaker net interest income caused by lower interest rates.

OCBC, Southeast Asia’s second-largest bank by assets, posted a net profit of S$1.97 billion for the January to March period, compared with S$1.88 billion in the same quarter last year. The bank’s total income climbed 5% to a record S$3.83 billion, driven mainly by a sharp rise in non-interest income.

Non-interest income surged 23% to S$1.61 billion, contributing more than 40% of OCBC’s overall revenue. Wealth management fees jumped 34% as customer activity increased across private banking services and investment products. Insurance income also grew 34%, while trading income recorded a 10% increase.

Despite the strong gains in fee-based businesses, OCBC experienced pressure on its core lending business due to lower benchmark interest rates. Net interest income fell 5% to S$2.22 billion, while the bank’s net interest margin narrowed to 1.76% from 2.04% a year earlier.

The Singapore lender also set aside S$191 million in allowances for non-impaired assets, citing ongoing macroeconomic uncertainty and geopolitical tensions, including Middle East conflicts and global trade tariff concerns.

Asset quality remained stable, with OCBC’s non-performing loan ratio holding steady at 0.9% for the eighth straight quarter. Meanwhile, the bank maintained a strong capital position, with its common equity tier-1 ratio standing at 17.0% at the end of March.

OCBC’s latest earnings highlight the bank’s resilience and growing dependence on wealth management and diversified income streams amid a challenging interest rate environment.