Singapore, Jan 16, 2026, 15:09 SGT — Regular session.
- OCBC shares edged up 0.15% to S$20.40 in afternoon trading.
- The bank revealed that treasury shares were used to fund employees’ share schemes.
- Investors are gearing up for OCBC’s full-year results and dividend guidance due next month.
Shares of Oversea-Chinese Banking Corporation Ltd (OCBC) nudged up on Friday following the bank’s announcement of another treasury stock use for staff incentives. Investors have already started shifting focus to the results coming out next month.
By 2:59 p.m., OCBC had edged up 0.15% to S$20.40, extending a streak that’s driven the stock to fresh highs in recent days. (SG Investors)
The disclosure comes as Singapore bank stocks attract renewed interest from income-focused investors, while the market wrestles with how quickly falling rates will erode lending margins in 2026.
OCBC will release its full-year 2025 results on Feb. 25. Investors are particularly focused on potential dividend announcements, discussions around capital returns, and any updates to guidance. (OCBC)
OCBC disclosed in a filing that it allocated 60,785 treasury shares for employee share schemes on Jan. 15, valuing them at roughly S$911,064. This brought the bank’s treasury-share total down to 11,095,478 from 11,156,263, according to the filing.
Treasury shares are stock a company has repurchased and keeps on hand. Deploying these for employee plans cuts down on issuing fresh shares, though Thursday’s figures were minor compared to OCBC’s total shares outstanding.
The filing underscores just how closely investors watch capital management at Singapore’s major banks, with dividends and buybacks playing a crucial role in their equity narratives.
Jonathan Koh, UOB Kay Hian’s director of research, noted that “banks provide resilient earnings with growth in non-interest income, including wealth management, offsetting negative impact from net interest margin (NIM) compression.” Lorraine Tan from Morningstar described quality dividend stocks as “a proxy to holding Singapore government bonds as interest rates are expected to fall.” Meanwhile, Tay Wee Kuang of CGS International highlighted that OCBC’s 2025 dividend payout might be backloaded into the second half. (The Straits Times)
Net interest margin measures the difference between what banks make on loans and what they shell out on deposits. When policy rates drop, that margin often tightens—particularly if deposit costs don’t decline as fast as loan returns.
OCBC bulls face a risk if rate cuts come sooner or deeper than anticipated, which could tighten margins and prompt a more conservative approach to dividends. Rising credit costs would intensify the pressure, especially if the regional economy weakens.
Friday’s filing probably won’t shift earnings by itself. Traders, however, noted that the steady stream of capital and share-count updates keeps focus on the bank’s next moves.
