ocbc and uob post record wealth earnings as net interest margins slip

SINGAPORE, 21 SEPTEMBER 2026 —

OCBC posted a record second‑quarter net profit of S$2.22 billion, 22 % higher than a year earlier and above the S$1.93 billion consensus from LSEG.

Both banks said fee‑based income from wealth management and trading offset lower net interest margins. OCBC’s non‑interest income climbed 51 % to S$1.91 billion, driven by a 28 % rise in fees, an 85 % jump in trading income and a 68 % increase in insurance income. UOB’s net fee income rose 5 % to S$665 million, led by record wealth‑management fees.

The banks’ net interest margins fell as loan yields slipped. OCBC’s margin declined to 1.70 % from 1.92 % a year earlier, while UOB’s dropped to 1.74 % from 1.91 %. DBS, the sector’s largest lender, reported a margin of 1.87 % in the same quarter, down from 2.05 % a year earlier.

OCBC’s first‑half wealth‑management income rose 27 % to a new high of S$3.29 billion, and banking assets under management grew 13 % to S$350 billion. UOB said first‑half wealth‑management income was up 16 %, with a 30 % increase across Malaysia, Indonesia, Thailand and Vietnam.

CEO Tan Teck Long said the bank’s strong capital, funding and diversified income streams position it to “tap growth sectors and deliver sustainable long‑term value.” Deputy Chairman and CEO Wee Ee Cheong added that UOB’s results “reflect the resilience of our diversified franchise and the momentum building across our key ASEAN markets.”

On guidance, OCBC lifted its loan‑growth outlook to high‑single‑digit to low‑double‑digit expansion, up from a mid‑single‑digit forecast. The bank also raised its interim dividend to 47 cents per share from 41 cents.

UOB kept its low‑single‑digit loan‑growth target for the year and projected full‑year net interest margin between 1.75 % and 1.80 %. However, it cut its 2026 fee‑income growth forecast to low single digits from high single digits, without providing a specific rationale. The interim dividend was increased to 88 cents per share from 85 cents.

Analysts note that the surge in wealth‑management fees comes as regional investors seek shelter from volatile markets and geopolitical uncertainty, reinforcing Singapore’s role as a wealth hub.

The mixed guidance on future fee growth suggests banks remain cautious about the sustainability of the current earnings boost, even as they benefit from higher asset‑management inflows.

Investors will watch whether the wealth‑management engine can offset further margin compression in the third quarter, and how the divergent loan‑growth outlooks affect each bank’s valuation.

Related: OCBC · Singapore