OCBC share price today: near record highs after a strong November
Oversea-Chinese Banking Corporation Limited (“OCBC”, SGX: O39) is trading close to all‑time highs as December 2025 begins.
By mid‑morning on 2 December 2025, OCBC shares were changing hands at around S$18.7 on the Singapore Exchange, with BusinessToday reporting S$18.74 at 9:16am and Beansprout showing S$18.69 shortly after. [1]
On Investing.com’s data, the 52‑week range for OCBC is roughly S$14.35 to S$18.82, putting the stock very close to its recent peak. [2]
Key valuation metrics at these levels:
- Market capitalisation: about S$83 billion. [3]
- Price‑to‑book (P/B): ~1.4x, versus a long‑run historical average of about 0.94x. [4]
- Price‑earnings (P/E): around 11–11.5x trailing earnings. [5]
- Ordinary dividend yield: roughly 4.4–4.5%, rising to ~5–5.5% if special dividends from the capital‑return plan are included. [6]
After a double‑digit rally in 2025, OCBC now trades at a premium to its own history but still at a discount to peer DBS Group, which commands a P/B above 2.2x, and slightly above UOB’s ~1.2x. [7]
Earnings snapshot: Q3 2025 shows resilient profits, softer margins
OCBC’s Q3 2025 numbers are the anchor for current valuations and sentiment.
- Net profit attributable to shareholders:S$1.98 billion, flat year‑on‑year but up about 9% quarter‑on‑quarter, and ahead of market expectations. [8]
- Net interest income (NII): down about 9% year‑on‑year as net interest margin (NIM) compressed. [9]
- Net interest margin: around 1.84% in Q3, versus about 2.2% in 2024, reflecting the impact of lower global rates and deposit competition. [10]
Where OCBC impressed was outside classic lending:
- Non‑interest income (fees, wealth, trading and insurance) hit a record, rising mid‑teens year‑on‑year and fully offsetting weaker NII. [11]
- Wealth management income reached about S$1.62 billion in Q3 and contributed 43% of total group income, up from 37% in Q2. [12]
- Banking wealth AUM climbed to a new high of S$336 billion, up 8% quarter‑on‑quarter on net inflows and market gains. [13]
- The majority‑owned insurer Great Eastern contributed strongly, with Q3 profit of about S$347 million, up sharply both quarter‑on‑quarter and year‑on‑year. [14]
Asset quality remains a bright spot:
- Non‑performing loan (NPL) ratio: steady at 0.9%, unchanged for six consecutive quarters. [15]
- NPA coverage: around 160%, providing a comfortable buffer. [16]
Looking back at 1H 2025, OCBC posted S$3.70 billion in net profit, just 6% below the previous year’s record, even though rates have rolled over. Non‑interest income rose about 8%, and fee income climbed nearly 20%, driven by wealth management. [17]
In short, Q3 2025 confirmed that OCBC’s multi‑engine model—banking, wealth and insurance—is largely compensating for the squeeze on lending margins.
Dividend and capital return: 5%+ yield plus a S$2.5 billion buyback and special payout plan
For many investors, OCBC is first and foremost a dividend stock.
What shareholders have received so far in 2025
According to Dividends.sg and SGX filings, OCBC has already paid S$0.98 per share in cash distributions in 2025: [18]
- 25 April 2025 ex‑date
- S$0.41 per share (final ordinary dividend for FY2024).
- S$0.16 per share (special dividend linked to the capital‑return framework).
- 8 August 2025 ex‑date
- S$0.41 per share (1H25 interim ordinary dividend).
Based on a share price in the high‑S$18 range, that implies a 2025 cash yield of roughly 5.2–5.3%, including the special payout. [19]
Independent data providers that focus only on “regular” dividends show a lower figure (about S$0.82 per share, or ~4.4% yield), but that excludes the special 16‑cent FY24/FY25 component. [20]
The S$2.5 billion capital return plan
In February 2025, OCBC unveiled a S$2.5 billion capital return over FY2024 and FY2025, funded by its strong capital position: [21]
- Special dividends equal to 10% of net profit for FY2024 and FY2025.
- Share buybacks making up the balance.
- A target ordinary payout ratio of 50%, bringing total payout to ~60% of earnings in each of FY2024 and FY2025.
For FY2024 specifically, OCBC declared: [22]
- Total ordinary dividend:S$0.85 per share.
- Special dividend:S$0.16 per share.
- Total:S$1.01 per share, representing a 60% payout of record FY2024 profits of S$7.59 billion.
Research from CGS International and Asian Banking & Finance suggests the capital story may not end there. After around S$370 million of buybacks already executed, they estimate that more than S$600 million (around 13 cents per share) could still be returned to shareholders in additional buybacks or specials by end‑2026, and that OCBC may have up to S$1 billion in excess capital beyond the S$2.5 billion framework. [23]
For income‑focused investors, that combination of high payout ratio, special dividends and buybacks is one of the main reasons OCBC features prominently in Singapore dividend portfolios.
Great Eastern: failed delisting, but a powerful profit engine
OCBC’s long‑running effort to fully own Great Eastern Holdings (GE) came to a head in mid‑2025.
- In June, Great Eastern proposed delisting from SGX with OCBC offering S$30.15 per share for the remaining 6.28% stake, valuing the deal at about S$900 million. [24]
- On 8 July 2025, minority shareholders voted on the delisting. While 63.49% supported the resolution, it fell short of the 75% threshold required, and the proposal failed. [25]
- OCBC had already signalled it would not launch another bid if this attempt failed and reiterated that it is comfortable with its 93.72% economic interest in GE. [26]
To restore its free float and resume trading, Great Eastern carried out a one‑for‑one bonus share issue, creating non‑voting shares and bringing public shareholding back above 10%. Trading resumed in August 2025 after a year‑long suspension. [27]
From OCBC shareholders’ perspective, two things matter:
- GE remains a consolidated earnings pillar. Over the past 11 years, Great Eastern has contributed about S$700 million of profit annually to the group on average. [28]
- The hoped‑for capital and cost synergies from full integration are delayed, but OCBC still enjoys the bulk of GE’s earnings while retaining strategic flexibility.
The failed delisting means there is no immediate cash outlay beyond the existing 93.72% stake, preserving capital for dividends, buybacks and growth.
Wealth management and Bank of Singapore: AUM surges past US$145 billion
OCBC’s strategic pivot toward wealth management is visible both in group numbers and in its private bank, Bank of Singapore (BOS).
At group level in Q3 2025: [29]
- Wealth management income rose sharply and now forms over 40% of total income.
- Banking wealth AUM reached S$336 billion, up 8% quarter‑on‑quarter.
At BOS specifically:
- Assets under management (AUM) exceeded US$145 billion in Q3 2025, up nearly 20% since early 2023. [30]
- BOS employs around 500 relationship managers and has raised its minimum account size to US$5 million, tilting further toward high‑net‑worth and ultra‑high‑net‑worth clients. [31]
- Management aims to make BOS one of Asia’s top‑five private banks within roughly five years, supported by expansion in Hong Kong and a growing hub in Dubai, which could account for about 20% of AUM by 2027. [32]
This wealth engine is strategically important:
- It diversifies away from rate‑sensitive NII.
- It links closely with Great Eastern’s insurance franchise.
- It strengthens OCBC’s positioning as a regional wealth and investment platform, not just a domestic lender.
New WeChat Pay QR payments link: fresh December 2025 catalyst
The big news on 2 December 2025 is not a new earnings release, but a digital payments move that could boost fee income over time.
FintechNews Singapore reports that OCBC is preparing to let Singapore customers pay in mainland China by scanning WeChat Pay QR codes directly from the OCBC app, using NETS’ cross‑border payment infrastructure. Launch is targeted for Q1 2026. [33]
Key details:
- Customers will be able to pay Chinese merchants directly from OCBC accounts in RMB, without separate local wallets.
- The feature builds on existing support for Alipay+ and UnionPay QR codes; OCBC’s QR payment coverage already spans 48 markets. [34]
- OCBC says China is its largest overseas QR market by volume; over the last year, overseas QR transaction volumes rose about 11%, and the number of active users increased around 67%. [35]
Asian Banking & Finance notes that OCBC plans to enable Scan‑and‑Pay on all China merchant QRs by Q1 2026, allowing app users to pay via Alipay, Weixin (WeChat) Pay and UnionPay at scale. [36]
Why this matters for OCBC stock:
- It deepens OCBC’s role in cross‑border travel and FX flows between Singapore and China.
- It should support fee‑based income (payments, FX spreads, card‑linked activity).
- It strengthens the stickiness of OCBC’s mobile banking ecosystem for affluent travellers and SME clients doing business in China.
While not a near‑term profit game‑changer on its own, it fits OCBC’s broader push to grow fee and wealth income as interest margins normalise.
How cheap (or expensive) is OCBC now?
Valuation is where opinions on OCBC start to diverge.
Relative to history and peers
- Current P/B of ~1.4x is well above OCBC’s historical average around 0.94x, signalling a clear re‑rating after three years of record‑level profits. [37]
- OCBC’s trailing P/E of roughly 11–11.5x compares with a Singapore bank sector average closer to the low‑teens and below DBS’s forward P/E of around 13x. [38]
The Smart Investor’s comparative analysis from November summarises the trade‑off neatly: [39]
- DBS: highest ROE and digital leadership, but trades at P/B > 2.2x.
- OCBC: P/B ~1.4x, trailing yield ~5.3%, strong wealth and insurance contributions.
- UOB: P/B ~1.2x, slightly higher yield, seen as the most conservative.
On that spectrum, OCBC looks like a “quality value” play: cheaper than DBS, but less of a bargain than UOB.
Analyst ratings and price targets
Across brokers and platforms, the picture is broadly constructive but with limited upside from today’s price.
- SGX / Beansprout consensus: average target price around S$19.01, implying about 1–2% upside from ~S$18.7. [40]
- TradingView compilation: 12‑month target of about S$19.34, with a range from roughly S$17.00 to S$21.20, based on ~15 analysts. [41]
- SGInvestors.io: average target around S$19.41, median near S$20.01, with houses such as CGS, DBS Research, Citi and Macquarie generally rating the stock “buy” or “outperform”, while a few (e.g. RHB) sit at “neutral”. [42]
- Investing.com consensus: classifies OCBC as a “Buy”, with roughly 10 Buy / 6 Hold / 0 Sell recommendations over the past three months. [43]
Notable recent broker moves:
- Maybank Investment Bank upgraded OCBC to “Buy”, raising earnings forecasts by roughly 7–9% for 2025–2027 on stronger fee income and robust capital, highlighting high NPA coverage and room for more capital return. [44]
- Citi also shifted to “Buy” with a target price of about S$20.30, arguing that OCBC’s AUM productivity is approaching DBS’s and that the stock still trades at an attractive discount. [45]
- Macquarie named OCBC its preferred Singapore bank, setting a target around S$19.90, citing wealth momentum and conservative guidance. [46]
Taken together, most analysts see mid‑single‑digit total return potential (price + dividends) from here, rather than dramatic upside—unless the rate and credit cycle turn out more benign than expected.
Technical and sentiment check: breakout, then consolidation
Market technicians are generally constructive on OCBC’s chart into December.
A widely‑followed Singapore newsletter notes that: [47]
- Price broke above S$17.00 resistance in early November on strong volume.
- The prior ceiling has turned into new support; S$18.00 is emerging as a psychological floor in the current consolidation.
- Near‑term resistance is around S$19.00, with a potential next leg to S$20.00 if that level is convincingly cleared.
Meanwhile, The Smart Investor highlights that OCBC delivered an 8.1% total return in November 2025, comfortably beating the STI’s 2.2% for the month, propelled by strong Q3 results and confidence in its wealth franchise. [48]
The upshot: momentum is positive but the stock is no longer “undiscovered”; expectations are higher, and any disappointment on earnings or dividends would likely be punished.
Key risks for OCBC stock heading into 2026
Even with impressive fundamentals, investors should keep several risks and headwinds in mind:
- Lower‑for‑longer interest rates
- OCBC guides for 2025 net interest income to fall by a mid‑single‑digit percentage, with NIM around 1.90–1.95%, down from roughly 2.2% in 2024. [49]
- Further global rate cuts into 2026 would continue to pressure NII, especially if loan growth slows simultaneously.
- Slower loan growth
- After 8% loan growth in 2024, OCBC now expects mid‑single‑digit expansion, citing macro uncertainty and more cautious corporate borrowing. [50]
- Reliance on market‑sensitive wealth & trading income
- A significant part of 2025’s resilience came from wealth management, trading and insurance. A sharp risk‑off period, especially in Asia, could reduce fee and investment income at BOS and Great Eastern. [51]
- Execution and regulatory risk in China and digital payments
- The WeChat Pay QR rollout opens new fee and FX streams, but also exposes OCBC more deeply to Chinese regulatory and competitive dynamics in cross‑border payments. [52]
- Capital and regulatory changes (Basel III reforms)
- MAS’s final Basel III reforms are being phased in through 2029, but OCBC currently reports a very strong CET1 ratio of 17.1% (15.3% fully phased‑in), which provides room for capital return and growth. A large acquisition or unexpected credit stress, however, could alter that picture. [53]
None of these risks are unique to OCBC—they affect all Singapore banks—but OCBC’s relatively high exposure to wealth, insurance and Greater China deserves monitoring.
Is OCBC (SGX: O39) a buy in December 2025?
Pulling the strands together as of 2 December 2025:
- Earnings quality: Profit growth has plateaued from the 2022–2023 boom, but Q3 2025 shows impressive resilience. OCBC is using multiple engines—wealth, insurance, trading—to keep profits near record levels even as margins compress. [54]
- Balance sheet strength: Asset quality is strong (NPL 0.9%, high coverage), and capital ratios comfortably exceed regulatory minima, supporting ongoing dividends and buybacks. [55]
- Income and dividends: A 5–5.5% effective yield, a stated 60% payout target and a S$2.5 billion capital‑return plan make OCBC one of the more attractive income names in the Straits Times Index. [56]
- Valuation: The stock has already re‑rated—P/B has climbed from below 1x to about 1.4x—and now trades close to consensus fair value, with most analyst targets only 2–10% above the current price. [57]
- Growth optionality: Expansion of Bank of Singapore, the Great Eastern franchise and cross‑border digital payments (including the new WeChat Pay QR integration) offer credible medium‑term growth levers beyond pure interest income. [58]
For investors who:
- want steady Singapore‑dollar dividends,
- prefer a bank that is cheaper than DBS but higher‑quality than many regional peers, and
- are comfortable with modest price upside in exchange for income and resilience,
OCBC stock looks reasonably attractive as a core holding, rather than a high‑beta trade.
References
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