1H 2026 Financial Results Media Briefing

Thank you. All right. Good morning, everyone. Welcome to OCBC second quarter, first half, 2026 results briefing. On our panel this morning, we have our group CEO, Mr. Tan-Tek Long, and our group CFO, Ms. Goh-Chin-E. To the left and right, I shall start from Jason. Jason Mu, our CEO of Bank of Singapore. Mr. Sunny Quag, the head of global consumer financial services. And then right to the other end, we have Mr. Greg Hinson joining us from Great Eastern, CEO of Great Eastern. And last but not least, we have Mr. Kenneth Lai, our head of global markets. Ginny will start the presentation and thereafter we will have Take Long sharing with us some of his thoughts before we take Q&A. Ginny, please. Good morning to all. Welcome and thank you for joining OCBC's first house, 2026 results with him. OCBC delivered a record group net profit of 2.2 billion Singapore dollars for the second

quarter of 2026, up 22% year on year. This is the first time that our quarterly profit crossed 2 billion. ROE was 14.4% on an annualised basis. Total income grew 18% year-on-year to a new high of 4.17 billion. Net interest income was 1% lower year-on-year amid lower interest rates environment but this was largely cushion by our strong growth in average assets. Robust growth in non-interest income more than compensated for the lower NII. Non-interest income grew 51% year on year driven by base growth across fees, trading and investment income and insurance income. Up 28% for fees, trading

and investment income up 85% and insurance income up 68%. In particular, strong momentum in wealth management drove the increase in fees, while customer flow treasury income was contributed by both wealth and corporate segments. Non-customer flow income was also higher for the quarter, largely from 191 million of investment income from Great Eastern led by strong equity markets. We continue to maintain cost discipline with Cost to income ratio lowered at 37.8%. Loans and deposits grew strongly up 11% and 13% year on year respectively. As that quality remained sound,

NPR ratio was stable at 0.9%. Credit cost at annualized 14 basis points. We maintain healthy liquidity, funding and capital positions. Common equity tier one ratio at 14% on fully phase-in basis

or 15.7% on position basis. For the first half, group net profit grows 13% year on year to a record 4.19 billion. Total income grew 11% to 8 billion, underpinned by record non-interest income, which more than compensated for the decline in net interest income. Analyzed ROE increased 1.1% points to 13.7%. Moving on to our performance by Key Business Pillars in slide 5. We delivered broad-based growth across our banking, wealth management and insurance franchise in the first half of 2026, as can be seen from the positive variances in all three charts

on this slide. Higher fees trading and investment income drove stronger banking net profit, which grew 8% year-on-year. growth management income reached a new high of 3.29 billion, up 27% year-on-year and now comprising 41% of the group's total income. All wealth segments and channels delivered growth. Net new money inflows were $6 billion for the second quarter, bringing the first half inflows to $11 billion. Banking AUM grew 13% year-on-year and 2% Q1Q to $350 billion. Profit contribution from GE rose 44% to $794 million underpinned by strong insurance and investment performance. Total weighted new sales and new business embedded value grew

15% and 28% year-on-year respectively, led by strong sales from Singapore across agencies as well as banker channels. And Beth margin improved to 49.8% from 44.7% a year ago, as GE continued to progress well in shifting to higher margin products. Moving on to our group performance trends, I will start with net interest income on slide 8. Second Q26, NII was $2.26 billion, down 1% year-on-year and up 2% Q1Q, despite a lower solar environment. As shown in the chart on the bottom left, the Q1Q increase in net interest income was driven by asset growth across both commercial and non-commercial books, which more than compensated

for lower loan use and higher wholesale funding costs. Average assets grew 5% Q&Q, driven by loan growth and a 5% or 10 billion increase in average balances of high-quality treasury assets. Moving to the chart on the bottom right, 2Q and NIM declined 6 basis points Q on Q to 1.70% reflecting compression in loan use and higher wholesale funding costs. During the quarter, we increased wholesale funding to support our strong 5% Q on Q loan growth and our continued investments in high quality treasury assets which are NII-equivative. These assets remain an important lever in helping us to sustain net interest income in a declining