Stock Analysis: OCBC Bank | Lianhe Zaobao
OCBC Bank recommends a neutral target price of 16.8 yuan, with a closing price of 17.04 yuan (+1.128%). It is expected that its non-interest income performance will outperform other local banks, as its insurance subsidiary Great Eastern reported better-than-expected performance in the third quarter, with a year-on-year net profit growth of 36%. Investors are focused on the bank's capital management policy, with an expected dividend per share of 1.01 yuan for the fiscal year 2025. The new president will take office in January 2026, at which point a clearer capital management policy will be established
OCBC Bank
- Recommendation: Neutral
- Target Price: SGD 16.8
- Closing Price: SGD 17.04 (+1.128%)
We expect OCBC Bank's non-interest income performance to have a different tone compared to other local banks. This is because OCBC's insurance subsidiary, Great Eastern, recently reported third-quarter results that exceeded expectations, with net profit increasing by 36% year-on-year to SGD 372 million, which will bring strong non-customer transaction income to OCBC Bank.
Current investor focus is also on the bank's capital management policy direction. Assuming OCBC maintains a dividend payout ratio of 53% for common stock, with a special dividend amount remaining at SGD 0.16 per share, the bank's total dividend per share for the fiscal year 2025 is expected to be SGD 1.01, unchanged year-on-year. However, the new president of OCBC Bank will officially take office in January 2026, and clearer capital management policies are expected to be introduced at that time. (Citi Investment Research)
Further Reading
Stock Commentary: Hualian Real Estate Investment Trust Stock Commentary: Keppel Data Centre Real Estate Investment Trust
Continue reading on the early news app
Expand full text
