Broker: CGS International
Date of Report: July 21, 2026
Excerpt from CGS International report.
Report Summary
- Stock: OCBC (OCBC.SI)
- Action: Downgrade to Hold (from Add)
- Target Price: S\$28.40 (previously S\$26.00)
- Current Price: S\$28.69
- Key Rationale:
- OCBC’s share price has risen approximately 19.1% since June, reducing its yield attractiveness compared to peers.
- Report expects 2Q26 net profit of S\$1.93bn (+6.4% yoy, -2.1% qoq), supported by continued non-interest income growth, especially from wealth management and insurance (Great Eastern).
- FY26F-28F EPS raised by 2.1% on synergies between wealth and insurance businesses.
- Yield expected to fall to 3.2% post capital return exercise (FY27F), lower than DBS (~4.8%) and UOB (~4.5%).
- Further re-rating is likely only after evidence of better ROE expansion, expected post-integration of HSBC Indonesia’s wealth management business in mid-FY27F.
- Upside Risks: NIM expansion, stronger loan growth, faster net new money inflow, upward dividend revision.
- Downside Risks: Higher integration costs, worsened macro environment, muted new money inflow.
above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website : https://www.cgs-cimb.com
