Singapore, Jan 22, 2026, 15:03 SGT — Regular session
- OCBC shares rose during Singapore’s afternoon trading session.
- The bank has rolled out a securities financing unit aimed specifically at institutional clients.
- A filing showed treasury shares had been earmarked for employee programs.
OCBC shares rose Thursday as investors showed fresh enthusiasm for the bank’s growing securities financing division, a key source of fee income and trading revenues. The stock nudged higher to S$20.56 from Wednesday’s close of S$20.44.
The move stands out as a straightforward bet on non-interest income, especially since bank stocks have mostly peaked. Investors are looking for evidence that growth isn’t just about lending, given how clients shift collateral amid market turbulence.
Singapore’s Straits Times Index slipped 0.4% in the last session, with the three local banks closing mixed, according to a market wrap.
OCBC has launched a new Securities Financing Unit inside its global markets division. According to a statement, the unit will offer lending options based on securities held in client accounts across OCBC and its subsidiaries, such as OCBC Securities, Bank of Singapore, and Great Eastern.
Securities financing spans various activities. It includes lending cash backed by equities or bonds, plus securities lending—loaning out shares or fixed income instruments for a fee. This practice often supports short positions or meets collateral demands, letting the lender earn the spread.
“Access to liquidity and efficient capital deployment have become crucial,” said Kenneth Lai, OCBC’s head of global markets, pointing to a spike in demand from institutional clients. The bank also flagged a record US$15.3 billion in global securities-lending revenues forecast for 2025, based on EquiLend Data & Analytics. theasianbanker.com
A separate filing showed OCBC used 184,470 treasury shares on Jan. 21 for employee share schemes, cutting its treasury share count to 10,826,386. The stated value is about S$2.76 million.
Traders are focused on whether the new unit delivers beyond a well-crafted press release. Any meaningful uptick in customer activity or fee income likely won’t show up immediately. The bank has yet to share any revenue projections.
But the business faces its hurdles. Securities financing swings with changes in risk appetite and market turnover, while global banks are fiercely competing for the same institutional flow in the region. A sharp drop in trading or a rapid risk-off move can send volumes plummeting.
OCBC is set to unveil its full-year 2025 earnings on Feb. 25, before the market opens. This will be a crucial date for investors to watch.
