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OCBC
(SGX:O39)
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Rating:77Outperform
Price Target:
S$34.00
▲(16.88% Upside)
Action:Reiterated
Date:08/09/26
The score is driven primarily by solid underlying financial performance (strong profitability/ROE with moderate leverage) and supportive technical strength (price above major moving averages with positive momentum). Earnings call takeaways add upside via raised growth guidance, disciplined credit-cost outlook, and continued capital returns, while valuation remains reasonable with an attractive dividend. The main offsets are cash flow volatility and management’s acknowledgement of NIM/NII pressure and select credit/provisioning risks.
Positive Factors
High and improving ROE / profitability
Sustained, above‑peer ROE and record quarterly profits indicate durable franchise profitability and efficient capital deployment. High ROE supports recurring dividends and capital returns while providing buffer to absorb cyclical shocks and fund strategic investments without immediate need for capital raises.
Negative Factors
Net interest income and margin pressure
Structural pressure from lower SORA and elevated wholesale funding raises the risk that core loan spread income will remain subdued. Persistent margin compression reduces the durability of traditional banking earnings and forces greater reliance on more volatile fee and trading income.
Read all positive and negative factors
Positive Factors
Negative Factors
High and improving ROE / profitability
Sustained, above‑peer ROE and record quarterly profits indicate durable franchise profitability and efficient capital deployment. High ROE supports recurring dividends and capital returns while providing buffer to absorb cyclical shocks and fund strategic investments without immediate need for capital raises.
Read all positive factors
OCBC (O39) vs. iShares MSCI Singapore ETF (EWS)
Market Cap
S$136.17B
Dividend Yield3.13%
Average Volume (3M)4.95M
Price to Earnings (P/E)10.1
Beta (1Y)1.15
Revenue Growth-2.86%
EPS Growth7.77%
CountrySG
Employees33,311
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.75
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$29.68Price Target Upside2.01% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)1.73
Revenue Forecast (FY)S$15.36B
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:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 06, 2026
Earnings Call Sentiment Positive
The earnings call conveyed a strongly positive performance driven by record profits, robust noninterest income (notably wealth, fees, trading and insurance), solid loan and deposit growth, and continued strategic execution. Key challenges noted were margin compression from lower rates and higher wholesale funding, some credit provisioning related to two Greater China CRE accounts and market‑driven volatility in investment income. Management provided constructive guidance (raised loan growth target to high single‑digit/low double‑digit), reiterated capital return plans, and emphasized balance sheet and capital flexibility to manage headwinds.Positive Updates
Record Quarterly and First-Half Profit
Group net profit for Q2 2026 was a record SGD 2.22 billion, up 22% year‑on‑year — the first quarterly profit above SGD 2.0 billion. First‑half group net profit rose 13% year‑on‑year to a record SGD 4.19 billion. Annualized ROE improved to 14.4% for the quarter and 13.7% for the first half.
Negative Updates
Net Interest Income and Margin Pressure
Net interest income fell 1% YoY to SGD 2.26 billion in Q2 despite a 2% Q‑on‑Q increase; NIM compressed 6 basis points Q‑on‑Q to 1.70% (June exit NIM 1.67%). Management expects a slight decline in NII for the full year and noted NIM pressure from lower SORA and higher wholesale funding costs.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly and First-Half Profit
Group net profit for Q2 2026 was a record SGD 2.22 billion, up 22% year‑on‑year — the first quarterly profit above SGD 2.0 billion. First‑half group net profit rose 13% year‑on‑year to a record SGD 4.19 billion. Annualized ROE improved to 14.4% for the quarter and 13.7% for the first half.
Read all positive updates
Company Guidance
Management raised full‑year loan growth guidance to the high single‑digit to low double‑digit range, and expects full‑year income to rise year‑on‑year with a slight decline in net interest income while NIM should stabilise in H2 as SORA gradually strengthens; treasury/NCAs growth will be significantly lower in H2. They guided operating cost‑to‑income in the low‑40% range, full‑year credit costs likely at the lower end of the prior 20–25 bps band (~20 bps), and reaffirmed an operating CET1 target of ~14% (14.0% fully phased‑in; 15.7% transitional) while completing the remaining SGD 2.5bn capital return plan by FY‑26 (≈SGD 800m still to return, or ~SGD 0.18/share if paid as a special dividend); interim dividend was SGD 0.47 (+15% YoY). NII sensitivity is ~SGD 6m per 1 bp rate move (annualised).OCBC Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 26.06B | 26.07B | 27.16B | 24.73B | 15.58B | 12.17B |
| Gross Profit | 15.29B | 14.48B | 13.78B | 12.77B | 11.09B | 9.72B |
| EBITDA | 10.85B | 8.59B | 22.19B | 19.84B | 11.37B | 7.77B |
| Net Income | 7.92B | 7.42B | 7.59B | 7.02B | 5.75B | 4.86B |
Balance Sheet | ||||||
| Total Assets | 729.89B | 675.69B | 625.05B | 581.42B | 559.96B | 542.19B |
| Cash, Cash Equivalents and Short-Term Investments | 28.36B | 30.76B | 57.28B | 51.74B | 61.65B | -7.65B |
| Total Debt | 68.04B | 30.48B | 31.79B | 26.77B | 22.63B | 29.78B |
| Total Liabilities | 667.10B | 612.79B | 566.37B | 525.87B | 505.29B | 489.05B |
| Stockholders Equity | 61.65B | 61.77B | 59.32B | 52.92B | 53.09B | 51.47B |
Cash Flow | ||||||
| Free Cash Flow | 207.00M | 11.46B | 3.35B | 8.59B | 8.45B | 13.84B |
| Operating Cash Flow | 1.43B | 12.45B | 3.96B | 9.13B | 8.93B | 10.80B |
| Investing Cash Flow | -63.89B | -52.46B | -4.33B | -10.45B | -1.51B | -29.71B |
| Financing Cash Flow | 56.91B | 36.64B | 70.00M | 355.00M | 628.00M | 20.02B |
OCBC Technical Analysis
Positive
29.09
Price Trends
26.40
Positive
24.19
Positive
21.67
Positive
Market Momentum
0.88
Positive
72.60
Negative
53.95
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 29.09 is above the 20-day moving average (MA) of 28.88, above the 50-day MA of 26.40, and above the 200-day MA of 21.67, indicating a bullish trend. The MACD of 0.88 indicates Positive momentum. The RSI at 72.60 is Negative, neither overbought nor oversold. The STOCH value of 53.95 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | S$136.17B | 10.13 | 22.16% | 4.76% | -2.86% | 7.77% | |
75 Outperform | S$216.90B | 26.60 | 15.95% | 4.22% | -5.30% | -0.44% | |
70 Outperform | S$71.45B | 10.96 | 9.47% | 6.85% | -10.35% | -19.23% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
60 Neutral | S$325.83B | 7.10 | 8.19% | 5.05% | ― | ― |
* Financial Sector Average
SG:O39
OCBC
30.30
13.85
84.24%
SG:D05
DBS Group Holdings
76.33
28.37
59.15%
SG:U11
UOB
43.30
9.30
27.35%
SG:HBND
Bank of China Ltd UnSp Singapore Depositary Receipt Repr 1 Sh
0.86
0.15
20.76%
SG:HSHD
HSBC Holdings PLC UnSp Singapore Depositary Receipt Repr 1/5 Sh
5.26
2.11
67.09%
SG:IBKD
PT Bank Central Asia Tbk Shs UnSp Singapore Depositary Receipt Repr 2/1 Sh
0.91
-0.19
-17.65%
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.