OCBC (SG:O39)
SGX:O39
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OCBC
(SGX:O39)
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Rating:74Outperform
Price Target:
S$28.00
▲(23.24% Upside)
Action:Reiterated
Date: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
Strong profitability and ROE
Sustained high net margin (~28.5% in 2025) and mid‑teens ROE range (~11%–13%) point to durable earnings power and operating efficiency. Strong profitability supports internal capital generation, dividend capacity and a buffer against cyclical shocks, underpinning long‑term franchise resilience.
Negative Factors
2025 revenue decline
A 6.4% revenue decline in 2025 reverses prior expansion and signals pressure on top‑line momentum. Persistent or recurrent revenue weakness would erode operating leverage, limit reinvestment in growth initiatives and constrain long‑term fee and commission expansion across the franchise.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and ROE
Sustained high net margin (~28.5% in 2025) and mid‑teens ROE range (~11%–13%) point to durable earnings power and operating efficiency. Strong profitability supports internal capital generation, dividend capacity and a buffer against cyclical shocks, underpinning long‑term franchise resilience.
Read all positive factors
OCBC (O39) vs. iShares MSCI Singapore ETF (EWS)
Market Cap
S$111.72B
Dividend Yield4.71%
Average Volume (3M)4.95M
Price to Earnings (P/E)7.5
Beta (1Y)1.10
Revenue Growth-5.80%
EPS Growth-2.09%
CountrySG
Employees33,656
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.64
Shares Outstanding4,515,052,000
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$25.63Price Target Upside12.79% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)1.7
Revenue Forecast (FY)S$15.11B
OCBC Business Overview & Revenue Model
Company Description
Oversea-Chinese Banking Corporation Limited (OCBC) is a financial institution offering a comprehensive range of services across Singapore, Malaysia, Indonesia, Greater China, the wider Asia Pacific region, and various international markets. Its Gl...
How the Company Makes Money
OCBC makes money primarily by earning income from its core banking, wealth management, and insurance businesses.
1) Net interest income (lending and deposit-taking): A major revenue stream comes from the spread between interest earned on assets (...
OCBC Earnings Call Summary
Earnings Call Date:Nov 07, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Aug 07, 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
22.72
Price Trends
23.09
Positive
21.99
Positive
19.89
Positive
Market Momentum
0.55
Negative
64.49
Neutral
82.07
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 22.72 is below the 20-day moving average (MA) of 24.13, below the 50-day MA of 23.09, and above the 200-day MA of 19.89, indicating a bullish trend. The MACD of 0.55 indicates Negative momentum. The RSI at 64.49 is Neutral, neither overbought nor oversold. The STOCH value of 82.07 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | S$324.07B | 7.02 | 8.19% | 5.05% | ― | ― | |
74 Outperform | S$111.72B | 7.53 | 24.77% | 4.71% | -5.80% | -2.09% | |
72 Outperform | S$185.93B | 17.04 | 15.87% | 5.06% | -5.26% | -3.07% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | S$65.68B | 10.26 | 9.22% | 6.49% | -9.13% | -21.93% |
* Financial Sector Average
SG:O39
OCBC
24.86
9.31
59.89%
SG:D05
DBS Group Holdings
65.43
23.04
54.33%
SG:U11
UOB
39.80
5.56
16.24%
SG:HBND
Bank of China Ltd UnSp Singapore Depositary Receipt Repr 1 Sh
0.85
0.11
15.75%
SG:HSHD
HSBC Holdings PLC UnSp Singapore Depositary Receipt Repr 1/5 Sh
4.89
1.92
64.92%
SG:IBKD
PT Bank Central Asia Tbk Shs UnSp Singapore Depositary Receipt Repr 2/1 Sh
0.85
-0.26
-23.08%
OCBC Corporate Events
OCBC Prices EUR 500 Million AAA-Rated Covered Bonds Due 2029
May 12, 2026
OCBC has priced a EUR 500 million issuance of fixed-rate covered bonds due 2029 under its US$10 billion Global Covered Bond Programme, with proceeds earmarked for general corporate purposes. The bonds will carry a coupon of 2.989 per cent per annu...
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.