OCBC (SG:O39)
SGX:O39
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OCBC
(SGX:O39)
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Rating:74Outperform
Price Target:
S$24.00
â–²(11.27% Upside)
Action:ReiteratedDate:03/27/26
The score is driven primarily by solid financial performance (strong profitability and ROE with moderate, improving leverage), tempered by the 2025 revenue pullback and cash-flow volatility. Technicals are supportive with price above key longer-term moving averages and positive momentum, while valuation is favorable with a reasonable P/E and an attractive dividend yield.
Positive Factors
High net profit margin
OCBC’s persistently high net margin (around the high-20% range, ~28.5% in 2025) signals durable earnings quality from core banking and insurance operations. Such margins support internal capital generation, shock absorption and consistent shareholder returns even if top-line growth slows.
Negative Factors
2025 revenue decline
A 6.4% revenue decline in 2025 highlights exposure to cyclical headwinds or softer fee and lending volumes. Sustained top-line weakness could constrain reinvestment, margin maintenance and future ROE expansion, making growth recovery and strategic initiatives harder without margin gains.
Read all positive and negative factors
Positive Factors
Negative Factors
High net profit margin
OCBC’s persistently high net margin (around the high-20% range, ~28.5% in 2025) signals durable earnings quality from core banking and insurance operations. Such margins support internal capital generation, shock absorption and consistent shareholder returns even if top-line growth slows.
Read all positive factors
OCBC (O39) vs. iShares MSCI Singapore ETF (EWS)
Market Cap
S$96.94B
Dividend Yield4.71%
Average Volume (3M)4.95M
Price to Earnings (P/E)12.1
Beta (1Y)1.07
Revenue Growth0.69%
EPS Growth-0.06%
CountrySG
Employees33,656
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.38
Shares Outstanding4,514,995,600
10 Day Avg. Volume3,854,820
30 Day Avg. Volume4,954,879
Financial Highlights & Ratios
PEG Ratio-5.06
Price to Book (P/B)1.46
Price to Sales (P/S)3.45
P/FCF Ratio7.85
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
S$22.24Price Target Upside3.10% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)1.7
Revenue Forecast (FY)S$15.00B
OCBC Business Overview & Revenue Model
Company Description
Oversea-Chinese Banking Corporation Limited provides financial services in Singapore, Malaysia, Indonesia, Greater China, rest of the Asia Pacific, and internationally. The company's Global Consumer/Private Banking segment provides products and se...
How the Company Makes Money
OCBC makes money mainly by earning interest income and fees from a broad set of financial products and services, complemented by insurance-related income and investment returns.
1) Net interest income (core banking): OCBC accepts customer deposit...
OCBC Earnings Call Summary
Earnings Call Date:Nov 07, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 08, 2026
Earnings Call Sentiment Positive
The earnings call presented a strong performance with significant growth in noninterest income and wealth management. While there are challenges with declining net interest income and narrowing NIM, the overall financial health and strategic growth initiatives indicate a positive outlook.Positive Updates
Strong Net Profit Growth
Group net profit for Q3 2025 was SGD 1.98 billion, up 9% from last quarter, marking the second highest quarterly net profit on record.
Negative Updates
Decline in Net Interest Income
Net interest income fell 2% to SGD 2.23 billion quarter-on-quarter due to declining benchmark rates.
Read all updates
Q3-2025 Updates
Positive
Negative
Strong Net Profit Growth
Group net profit for Q3 2025 was SGD 1.98 billion, up 9% from last quarter, marking the second highest quarterly net profit on record.
Read all positive updates
Company Guidance
In the third quarter of 2025, OCBC reported a group net profit of SGD 1.98 billion, marking a 9% increase from the previous quarter. This performance was driven by a 24% rise in noninterest income to SGD 1.57 billion, which more than compensated for a 2% decline in net interest income to SGD 2.23 billion due to falling benchmark rates. The return on equity (ROE) was annualized at 13.4%, while total income grew by 7% quarter-on-quarter. The bank's strong performance in wealth management, with a record high income of SGD 1.62 billion, contributed significantly to the results. The net new money inflows were SGD 12 billion, surpassing the previous quarters' run rate. Asset quality remained robust with a non-performing loan (NPL) ratio of 0.9% and total credit costs at an annualized 16 basis points. The Common Equity Tier 1 (CET1) ratio was 16.9% on a transitional basis. OCBC's capital position was sound, supporting their strategy to drive asset growth and manage funding costs efficiently.OCBC Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
66
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 26.07B | 27.16B | 24.73B | 15.58B | 12.17B |
| Gross Profit | 14.48B | 13.78B | 12.77B | 11.09B | 9.72B |
| EBITDA | 8.59B | 22.19B | 19.84B | 11.37B | 7.77B |
| Net Income | 7.42B | 7.59B | 7.02B | 5.75B | 4.86B |
Balance Sheet | |||||
| Total Assets | 675.69B | 625.05B | 581.42B | 559.96B | 542.19B |
| Cash, Cash Equivalents and Short-Term Investments | 30.76B | 57.28B | 51.74B | 61.65B | -7.65B |
| Total Debt | 30.48B | 31.79B | 26.77B | 22.63B | 29.78B |
| Total Liabilities | 612.79B | 566.37B | 525.87B | 505.29B | 489.05B |
| Stockholders Equity | 61.77B | 59.32B | 52.92B | 53.09B | 51.47B |
Cash Flow | |||||
| Free Cash Flow | 11.46B | 3.35B | 8.59B | 8.45B | 13.84B |
| Operating Cash Flow | 12.45B | 3.96B | 9.13B | 8.93B | 10.80B |
| Investing Cash Flow | -52.46B | -4.33B | -10.45B | -1.51B | -29.71B |
| Financing Cash Flow | 36.64B | 70.00M | 355.00M | 628.00M | 20.02B |
OCBC Technical Analysis
Positive
21.57
Price Trends
21.13
Positive
20.05
Positive
18.31
Positive
Market Momentum
0.11
Negative
58.79
Neutral
83.35
Negative
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 21.57 is above the 20-day moving average (MA) of 21.05, above the 50-day MA of 21.13, and above the 200-day MA of 18.31, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 58.79 is Neutral, neither overbought nor oversold. The STOCH value of 83.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:O39.
OCBC Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | S$21.06B | 13.24 | 30.82% | 2.27% | 11.28% | 8.34% | |
74 Outperform | S$96.94B | 12.12 | 24.77% | 4.71% | 0.69% | -0.06% | |
74 Outperform | S$7.92B | 12.13 | 11.35% | 3.10% | -0.39% | 8.38% | |
73 Outperform | S$162.39B | 14.63 | 15.25% | 5.06% | 2.67% | 6.32% | |
71 Outperform | S$1.14B | 18.75 | 2.98% | 4.87% | -10.51% | -15.79% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | S$60.88B | 12.70 | 9.22% | 6.49% | -0.76% | 4.96% |
* Financial Sector Average
SG:O39
OCBC
21.57
5.35
33.00%
SG:D05
DBS Group Holdings
57.15
13.35
30.47%
SG:S68
Singapore Exchange
19.67
6.62
50.76%
SG:U11
UOB
36.85
1.12
3.14%
SG:G07
Great Eastern Holdings Limited
15.75
3.31
26.61%
SG:S41
Hong Leong Finance Limited
2.53
0.11
4.55%
OCBC Corporate Events
OCBC Prices US$500 Million Tier 2 Subordinated Notes for Capital Management
Feb 26, 2026
Oversea-Chinese Banking Corporation Limited has priced US$500 million in fixed rate Tier 2 subordinated notes under its US$30 billion Global Medium Term Note Programme, with net proceeds earmarked for general corporate purposes and expected qualif...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.