OCBC, the Financial sector company, was revisited by a Wall Street analyst today. Analyst Glenn Thum from Phillip Securities maintained a Hold rating on the stock and has a S$17.00 price target.
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Glenn Thum has given his Hold rating due to a combination of factors impacting OCBC’s financial outlook. The bank’s earnings for the third quarter of 2025 slightly surpassed expectations, primarily driven by a significant increase in wealth management fees. However, the overall net interest income experienced a decline due to a drop in net interest margins, despite a modest growth in loans. This mixed performance reflects the bank’s stable yet cautious financial position.
Another reason for the Hold rating is the uncertainty surrounding OCBC’s future capital return plans. While the bank has committed to a capital return of S$2.5 billion by the end of fiscal year 2025, there is no clear guidance on whether this will continue into 2026 and beyond. Although OCBC maintains a strong capital position with a high CET1 ratio, the lack of clarity on future dividends and buybacks contributes to the neutral stance. Additionally, the bank’s earnings are expected to remain flat year-over-year, with potential gains in fee income being offset by pressures on net interest margins and income.
According to TipRanks, Thum is a 5-star analyst with an average return of 16.7% and an 85.71% success rate. Thum covers the Financial sector, focusing on stocks such as UOB, OCBC, and DBS Group Holdings.