OCBC tops $100 billion in market cap as analysts see more upside

SINGAPORE - OCBC Bank surpassed $100 billion in market capitalisation for the first time this week, buoyed by potential wealth inflows from the Middle East and another interest rate cut on its flagship savings account.

Its shares soared past the $22 mark for the first time on March 31.

On April 2, OCBC hit its highest-ever at $22.83, before retreating to close the week at $22.38, up 3.76 per cent from March 27.

Market trading will be closed on April 3 for the Good Friday holiday.

Shares of DBS, the only other Singapore-listed company in the club, edged 0.7 per cent higher for the week to close at $57.55, while UOB shares rose 0.16 per cent to $36.91.

Analysts said local banks are set to benefit from wealth inflows into Singapore amid the ongoing Middle East conflict.

CGS International (CGSI) research analyst Tay Wee Kuang noted that OCBC could benefit more due to its exposure in wealth management as well as from its insurance arm, Great Eastern.

CGSI has an “add” call on OCBC, with a target price of $23.40 and a dividend yield of about 4 per cent. “Our call still offers an overall return slightly above 8 per cent,” said Mr Tay.

An RHB research analyst said: “We expect the stock to be one of the key beneficiaries from wealth inflows and improving investor sentiment if the Middle East situation de-escalates sharply.”

The analyst noted that OCBC offers investors a combination of defensiveness, such as solid asset quality, with reasonable valuations and dividend yields. “It is also a liquid, large-cap stock,” the analyst added.

RHB has a target price of $23.45 on OCBC.

Macquarie Capital head of Asean equity research Jayden Vantarakis said the firm has an “outperform” rating on OCBC with a target price of $23.82.

“We do not see the shares as expensive. Valuations are more appealing than DBS on a price-to-book basis,” he said. Macquarie prefers OCBC, followed by UOB and DBS.

“OCBC had the best fourth-quarter 2025 result, and we think the shift on capital management provides visibility on a 60 per cent payout being maintained this year,” Mr Vantarakis wrote in a March 31 note.

While all three banks should benefit from wealth inflows, there are risks around lower deployment into investments amid a “risk off” environment, though OCBC is better cushioned than its peers, Mr Vantarakis noted.

“The more volatile environment also (signals) higher general allowances versus the fourth-quarter 2025 position. OCBC has a strong starting point on general allowances and non-performing asset cover,” he added.

Analysts further noted that OCBC’s latest interest rate cut to its 360 Account could have helped lift its share price, as the move will boost the bank’s net interest margin (NIM) – a key profitability gauge – by widening the gap between what it earns on loans and what it pays on deposits.

With effect from May 1, the first $100,000 in an OCBC 360 Account can earn up to 4.45 per cent a year, down from 5.45 per cent currently.

It is the first time in 2026 that OCBC has trimmed rates for the 360 Account, following two cuts in 2025.

“The recent trimming of OCBC 360 Account interest rates can continue to lower its cost of funds. A potential rebound in Singapore Overnight Rate Average with higher-for-longer interest rate expectations in the US could also provide a resilient NIM and consequently net interest income,” said CGSI’s Mr Tay.

DBS, meanwhile, reached another milestone in market value by topping US$100 billion (S$129 billion) in market cap in June 2025. This further increased to US$124 billion at end-2025, placing it among the top 25 banks globally by market value.