OCBC shares hit record as wealth unit shines
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The stock reached a new intra-day high of $18.97 on Dec 3, before paring some gains.
ST PHOTO: KUA CHEE SIONG
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SINGAPORE – OCBC shares have hit a fresh record on better business and dividend prospects.
The stock reached a new intra-day high of $18.97 on Dec 3, before closing the day at $18.95.
The counter has underperformed Singapore’s benchmark Straits Times Index and its biggest company, DBS Group Holdings, in the year to date, but it has been besting both since the beginning of November.
OCBC shares are supported by “outperformance in the wealth franchise, and the optionality of higher dividends in 2026”, said Mr Jayden Vantarakis, the head of Asean equity research at Macquarie Capital. “We identified the stock as having room to close the gap with DBS.”
Bloomberg Intelligence analyst Sarah Jane Mahmud wrote in a note in November: “Wealth fees will drive revenue growth at Singapore’s three banks in 2026, building on their 34 per cent average increase so far this year, with OCBC setting the pace.”
In a Nov 28 report, analysts at JPMorgan said they expect OCBC’s share price to strengthen once the bank formally raises its dividend payout.
Combined with steady performance in its wealth management business, this could support a re-rating of the stock, they noted, adding that concerns over asset quality at UOB and richer valuations at DBS have prompted investors to look for a bank that still offers solid growth at a fair valuation, a gap that OCBC fills.
The analysts have upgraded the stock to overweight, with a target price of $20 by the end of 2026.
Maybank Investment Banking also sees further upside for OCBC on the back of recent reforms by the Equity Market Review Group led by the Monetary Authority of Singapore.
The positive momentum in the market as a result of the reforms should support better retail participation, higher institutional flows and stronger valuations for Singapore equities, its analysts noted in a Nov 20 report.
This, in turn, will enable OCBC to generate more lucrative brokerage and deal fees, they said.
Singapore stocks have reached records in 2025 on an influx of liquidity, with investors fleeing to the safe haven amid global trade tensions and the outlook for US Federal Reserve rate cuts.
The three largest banks, which account for about half of the benchmark index, have benefited from wealth management and trading-fee income. BLOOMBERG
Additional reporting by Kang Wan Chern
