Singapore, Jan 22, 2026, 15:03 SGT — Regular session
- Shares of OCBC climbed in Singapore’s afternoon session.
- The bank launched a securities financing unit targeting institutional clients.
- A filing revealed treasury shares were allocated for employee programs.
OCBC shares climbed Thursday, reflecting renewed investor interest in the bank’s expanding securities financing unit, which drives fee income and trading-related activities. The stock hit S$20.56, edging up from Wednesday’s close of S$20.44. (Investing)
This move is significant as a direct wager on non-interest income, coming after bank stocks have largely run their course. Investors want proof growth isn’t solely tied to lending, particularly when volatile markets prompt clients to shuffle collateral.
The backdrop has been anything but quiet. Singapore’s Straits Times Index dipped 0.4% in the previous session, while the three local banks ended on a mixed note, according to a market wrap. (The Straits Times)
OCBC announced the creation of a dedicated Securities Financing Unit within its global markets division. The team will provide lending solutions using securities held in client accounts at OCBC and its subsidiaries, including OCBC Securities, Bank of Singapore, and Great Eastern, the bank said in a statement.
Securities financing covers a wide range of activities. It involves lending cash secured by equities or bonds, as well as securities lending, where shares or fixed income instruments are loaned out for a fee. This is often done to cover short positions or fulfill collateral requirements, allowing the owner to pocket the spread.
“Access to liquidity and efficient capital deployment have become crucial,” said Kenneth Lai, OCBC’s head of global markets. He noted a surge in demand from institutional clients. The bank also highlighted a record US$15.3 billion in global securities-lending revenues for 2025, according to EquiLend Data & Analytics. (Theasianbanker)
A separate filing revealed that OCBC utilized 184,470 treasury shares on Jan. 21 for employee share schemes, bringing its treasury share total down to 10,826,386. The stated value stands at roughly S$2.76 million.
Traders are zeroing in on whether the new unit is more than just a polished press release. Any real boost in customer activity or fee income probably won’t surface right away. So far, the bank hasn’t provided any revenue estimates.
But the business isn’t without challenges. Securities financing fluctuates with shifts in risk appetite and market turnover, and global banks are already jostling fiercely for the same institutional flow in the region. A sudden dip in trading or a quick risk-off move can slam volumes down fast.
OCBC plans to release its full-year 2025 results on Feb. 25, ahead of market open, marking the next key date for investors. (Shareinvestor)
