OCBC Bank has maintained its neutral stance with a target price of S$17.50, offering a 9% upside and an approximate 6% yield for the financial year 2025. In a recent update meeting, the bank’s management indicated that the overall tone remains consistent with the first quarter results, highlighting ongoing uncertainties around loan drawdowns and non-interest income. However, the bank has strategies in place to manage net interest margins (NIMs) effectively, whilst asset quality remains stable.
The bank’s capital return plan is a key focus, providing reassurance to investors during this period of uncertainty. The management’s commitment to maintaining this plan is seen as a stabilising factor for stakeholders. The update follows a previous report on 9 June 2025, which discussed the bank’s attempt to privatise Great Eastern, indicating ongoing strategic moves within the organisation.
The analyst from Singapore Research noted, “The tone was broadly similar as the 1Q25 results briefing – some uncertainties remain around loan drawdowns and non-II, but OCBC Bank has options to help manage NIMs ahead whilst asset quality appears to be holding up.”
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