Singapore, Jan 23, 2026, 15:15 SGT — Regular session
- OCBC ticked up about 3% to S$21.21 in afternoon trading
- Broker upgrades and delayed rate-cut bets have lifted Singapore banks.
- OCBC’s renewed push into securities financing shines a spotlight on fee income ahead of its Feb. 25 earnings release
Shares of Oversea-Chinese Banking Corporation Ltd rose about 3% to S$21.21 by 2:58 p.m. local time. This gain extends a January rally that’s pushed Singapore’s banks to fresh highs. (SG Investors)
The rally came after United Overseas Bank hit a record high, lifting the Straits Times Index to new territory. Analysts have upped their price targets on the banks as investors bet on a delay in U.S. rate cuts. Morningstar’s Kathy Chan pointed out that “the banks, especially UOB, have been catching up,” while Macquarie’s Jayden Vantarakis recently raised OCBC’s target to S$21.50. (The Business Times)
This matters because bank shares frequently serve as a proxy for the rates cycle. When traders expect policy rates to stay high for longer, it tends to lift net interest margins — the gap between banks’ loan earnings and their deposit costs.
OCBC revealed a fresh strategic move. The bank is rolling out a dedicated securities financing unit designed to tap into institutional client demand and enable customers to earn fees by lending out idle securities. OCBC says it’s the first Singapore lender to set up a specialist unit for this line of business. “The ability to access liquidity and deploy capital efficiently has become critical, especially in the context of elevated market volatility,” said Kenneth Lai, OCBC’s head of global markets. (The Edge Singapore)
Securities financing means lending out stocks and bonds to borrowers needing them for trading or as collateral, with the owner earning a fee. For investors, this shows banks are still pursuing fee-driven income as easy profits from rising rates start to wane.
OCBC disclosed in a separate filing on Thursday that it used 29,246 treasury shares—previously bought back and held—to meet obligations under employee share schemes. Following this, the bank still holds 10,797,140 treasury shares on its books.
As the next session and the week ahead approach, traders are grappling with a crucial question: will the rally stay broad-based, or tighten around earnings reports and broker commentary? Bank shares often move decisively when there’s a shift in rate expectations.
The risk stands out: if global interest rates fall faster than expected, lending spreads usually tighten. At the same time, any slip in credit quality could weigh on the sector. Analysts caution that a slowdown in wealth inflows, crucial for fee income, might deliver a significant blow.
All eyes are on OCBC’s full-year results, due before the market opens on Feb. 25. Investors will zero in on margins, how costs are managed, and if fee growth can make up for any slowdown should rate tailwinds fade. (SGX Links)
