OCBC (O39) AI Stock Analysis

• Market Cap: $76.53B
• Dividend Yield: 5.13%
• Average Volume (3M): 4.95M
• Price to Earnings (P/E): 10.4
• Beta (1Y): 1.02
• Revenue Growth: 0.69%
• EPS Growth: -0.06%
• Country: SG
• Employees: 33,656
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.43
• Shares Outstanding: 4,514,995,600
• 10 Day Avg. Volume: 3,854,820
• 30 Day Avg. Volume: 4,954,879
• PEG Ratio: 1.29
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 2.79
• P/FCF Ratio: 22.63
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 2.88
• Enterprise Value/Gross Profit: 3.75
• Enterprise Value/Ebitda: 4.78
• 1Y Price Target: $18.18
• Price Target Upside: -1.71% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: S$19.50 ▲(5.41% Upside)

OCBC's strong earnings call performance and valuation metrics are significant positives, indicating robust growth potential and value. However, financial performance concerns, particularly in revenue and cash flow, and technical indicators suggesting overbought conditions, moderate the overall score.

Positive Factors

Strong Noninterest Income Growth

The significant growth in noninterest income indicates a diversified revenue stream, reducing reliance on interest income and enhancing financial stability.

Wealth Management Success

Strong performance in wealth management underscores OCBC's ability to capture high-margin business, supporting long-term profitability and client retention.

Strong Capital Position

A robust capital position ensures financial resilience and supports strategic growth initiatives, enhancing OCBC's competitive edge in the banking sector.

Negative Factors

Decline in Net Interest Income

The decline in net interest income reflects challenges in the core banking business, potentially impacting future earnings if interest rates remain low.

Narrowing Net Interest Margin

A narrowing net interest margin could pressure profitability, especially if low interest rate environments persist, affecting long-term earnings potential.

Revenue Decline

The revenue decline poses a concern for sustainable growth, indicating potential challenges in maintaining market share and competitive positioning.

OCBC Business Overview & Revenue Model

Company Description

OCBC Bank (Oversea-Chinese Banking Corporation Limited) is one of the largest banks in Southeast Asia, headquartered in Singapore. Established in 1932, OCBC operates primarily in the financial services sector, providing a wide range of products and services including retail and corporate banking, wealth management, insurance, and investment banking. The bank has a strong presence in Singapore and is also active in markets across Asia, particularly in Malaysia, Indonesia, and Greater China, focusing on both individual and business customers.

How the Company Makes Money

OCBC generates revenue through multiple streams, primarily from net interest income and non-interest income. Net interest income is derived from the interest earned on loans provided to customers, which includes personal loans, mortgages, and corporate financing, minus the interest paid on deposits and borrowings. Non-interest income comes from various sources such as fees and commissions from banking services, wealth management, insurance premiums, and trading income. Additionally, OCBC has established significant partnerships with other financial institutions and companies, enhancing its service offerings and expanding its customer base. The bank's strong focus on digital banking and innovation also plays a crucial role in attracting new clients and retaining existing ones, thus contributing to its overall earnings.

OCBC Financial Statement Overview

Summary

OCBC shows strong profitability and a solid balance sheet with effective cost management and a healthy return on equity. However, revenue declines and cash flow challenges are areas for improvement.

Income Statement

OCBC has demonstrated strong profitability with a consistent net profit margin of around 28% in 2024, despite a revenue decline of 9.3%. The EBIT and EBITDA margins remain robust, indicating efficient operational management. However, the recent revenue contraction poses a concern for future growth.

Balance Sheet

The debt-to-equity ratio of 0.54 in 2024 suggests moderate leverage, which is manageable given the bank's strong equity base. Return on equity is healthy at 12.8%, reflecting effective use of shareholder funds. However, the slight increase in leverage over the years warrants monitoring.

Cash Flow

OCBC's cash flow performance has been mixed, with a significant decline in free cash flow growth in 2024. The operating cash flow to net income ratio is low, indicating potential challenges in converting income into cash. The free cash flow to net income ratio remains strong, suggesting good cash generation relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	30.28B	27.16B	24.73B	15.58B	12.17B	8.10B
Gross Profit	23.26B	13.78B	12.77B	11.09B	9.72B	8.10B
EBITDA	18.27B	22.19B	19.84B	11.37B	7.77B	5.87B
Net Income	9.43B	7.59B	7.02B	5.75B	4.86B	3.59B
Balance Sheet
Total Assets	644.79B	625.05B	581.42B	559.96B	542.19B	521.39B
Cash, Cash Equivalents and Short-Term Investments	33.75B	57.28B	51.74B	61.65B	-7.65B	-7.44B
Total Debt	30.26B	31.79B	26.77B	22.63B	29.78B	35.42B
Total Liabilities	583.27B	566.37B	525.87B	505.29B	489.05B	471.42B
Stockholders Equity	60.45B	59.32B	52.92B	53.09B	51.47B	48.42B
Cash Flow
Free Cash Flow	16.35B	3.35B	8.59B	8.45B	13.84B	15.25B
Operating Cash Flow	17.02B	3.96B	9.13B	8.93B	10.80B	6.48B
Investing Cash Flow	-18.66B	-4.33B	-10.45B	-1.51B	-29.71B	-9.33B
Financing Cash Flow	13.67B	70.00M	355.00M	628.00M	20.02B	5.91B

OCBC Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:O39, the sentiment is Positive. The current price of 18.5 is above the 20-day moving average (MA) of 18.05, above the 50-day MA of 17.25, and above the 200-day MA of 16.40, indicating a bullish trend. The MACD of 0.31 indicates Positive momentum. The RSI at 70.50 is Negative, neither overbought nor oversold. The STOCH value of 57.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:O39.

OCBC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
S68	80 Outperform	$18.34B	28.29	30.82%	2.36%	11.28%	8.34%
D05	78 Outperform	$151.72B	13.47	17.10%	5.26%	2.67%	6.32%
G07	74 Outperform	S$7.63B	14.32	11.35%	3.13%	-0.39%	8.38%
S41	72 Outperform	S$1.17B	13.99	4.02%	4.90%	-10.51%	-15.79%
O39	71 Outperform	$76.53B	10.41	12.87%	5.13%	0.69%	-0.06%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
U11	65 Neutral	$56.10B	9.49	12.80%	6.68%	-0.76%	4.96%

OCBC Corporate Events

OCBC Reports Strong Q3 2025 Profit Growth

Oversea-Chinese Banking Corporation (OCBC) is a leading financial services group in Asia, offering a comprehensive range of banking, wealth management, and insurance services. It operates primarily in the banking sector and is known for its strong presence in wealth management and insurance.

OCBC Prices US$1 Billion Tier 2 Subordinated Notes to Strengthen Capital Base

OCBC has successfully priced US$1 billion of Tier 2 subordinated notes under its US$30 billion Global Medium Term Note Programme. The proceeds will be used for general corporate purposes and the notes are expected to qualify as Tier 2 capital under the Monetary Authority of Singapore’s requirements. The notes, bearing a coupon of 4.55% per annum, are set to be issued on 8 September 2025 and listed on the Singapore Exchange. This strategic move is expected to enhance OCBC’s capital structure and strengthen its financial position, potentially impacting its market standing and stakeholder interests.

The most recent analyst rating on (SG:O39) stock is a Hold with a S$16.40 price target. To see the full list of analyst forecasts on OCBC stock, see the SG:O39 Stock Forecast page.