OCBC’s Strong Financial Position and Growth Prospects Justify Buy Rating

Phillip Securities analyst Glenn Thum maintained a Buy rating on OCBC (OVCHF – Research Report) today and set a price target of S$17.10.

Glenn Thum has given his Buy rating due to a combination of factors including OCBC’s ability to maintain a stable financial outlook despite challenges. The bank’s earnings for the first quarter of 2025 were in line with expectations, supported by an increase in non-interest income which helped offset a decline in net interest income and higher expenses. Additionally, OCBC’s commitment to a significant capital return plan, including a special dividend, underscores its strong capital position.
Moreover, the bank’s wealth management segment showed robust growth, with fees rising significantly due to increased customer activities and a higher asset under management base. Trading and insurance income also contributed positively, benefiting from heightened market volatility. These factors, combined with an attractive dividend yield and expectations for continued special dividends, support the Buy rating as OCBC is well-positioned to achieve its financial targets in the coming years.

In another report released yesterday, Macquarie also maintained a Buy rating on the stock with a S$17.12 price target.