Broker Name: Maybank Research Pte Ltd
Date of Report: November 7, 2025
Excerpt from Maybank Research Pte Ltd report
Report Summary:
- Maybank upgrades OCBC Bank to BUY with a raised target price of SGD20.52, citing strong delivery on “One Group” synergies, resilient asset quality, and prospects for higher capital returns.
- OCBC outperformed earnings expectations for 9M25, driven by robust wealth management and insurance income, with non-interest income and loan growth offsetting net interest margin pressure.
- The bank’s capital levels are high and provisioning buffers strong, supporting further dividend payouts and potential for continued capital management beyond 2025.
- Singapore loan growth is the fastest among peers, supported by SME exposure and a construction boom, while asset quality remains solid with industry-leading coverage levels.
- Maybank expects dividends to remain attractive into 2026, with a projected yield of about 6%, and sees downside support for ROE amid macro volatility thanks to synergies and stable core operations.
- Risks to the outlook include increased macroeconomic and geopolitical volatility, IT/cyber risks, and currency headwinds from a strong SGD, but overall outlook is positive due to OCBC’s diversification and execution on strategy.
Above is an excerpt from a report by Maybank Research Pte Ltd. Clients of Maybank can be the first to access the full report from the Maybank website: https://www.maybank.com/investment-banking
