OCBC Shares Touch Record High as Earnings Spark Analyst Upgrades

By Megan Cheah

Shares of OCBC, Southeast Asia's second-largest lender, have reached another intraday high as better-than-expected earnings prompt a flurry of ratings upgrades by analysts.

Oversea-Chinese Banking Corp.'s stock rose as high as S$18.47 Tuesday morning in Singapore, continuing a record-setting streak sparked by its third-quarter results last week.

The Singaporean lender's stock crossed S$18.00 for the first time on Monday, bringing its market capitalization to over 82.2 billion Singapore dollars, equivalent to US$63.11 billion. Year-to-date gains stand at nearly 12%.

Analysts have cheered the quarterly results, now seeing better prospects for dividend payouts and more growth ahead.

Profit was supported by record noninterest income and lower allowances, said OCBC. Its wealth-management business also set a new high in terms of assets under management.

DBS Group Research has upgraded OCBC to buy from a hold, citing higher expectations for return on equity. A share re-rating "is in the works" if OCBC details a clear plan for capital returns and bulks up its dividend policy, analyst Lim Rui Wen said in a note.

She expects that to come toward the end of the year, likely as part of the new corporate strategy OCBC is planning. The bank's current three-year blueprint for its business ends in 2025.

Markets will also be watching for any changes under OCBC's new leadership, with current deputy chief executive Tan Teck Long set to succeed Helen Wong as CEO next year.

The potential for higher dividends also spurred Maybank Securities Singapore to upgrade OCBC to buy from hold.

The fact that the bank has said there are limited merger-and-acquisition opportunities available signals space for a 2026 dividend yield of 6%, said Thilan Wickramasinghe, head of research at Maybank Securities Singapore.

CGS International analysts are upbeat on OCBC's wealth business too.

Wealth-management fees hit a record high in the third quarter and the segment is poised to be a key driver of noninterest income, they said. CGS International raised its rating on OCBC to add from hold.

Write to Megan Cheah at megan.cheah@wsj.com

(END) Dow Jones Newswires

November 10, 2025 22:32 ET (03:32 GMT)