Should I buy OCBC stock in 2025?
Is OCBC stock a buy right now?
ScoreAs of May 2025, OCBC (O39.SI) shares are trading at around SGD 16.23 with an average daily trading volume of about 8.05 million shares, reflecting steady investor participation on the Singapore Exchange. Despite posting a modest 5% year-on-year decline in Q1 net profit to SGD 1.88 billion—mainly due to a lower net interest margin—the bank outperformed analyst expectations, demonstrating strong operational resilience. OCBC’s proactive risk management, including additional provisions for non-impaired assets, highlights its conservative approach amid regional economic uncertainty. As major Singaporean and regional banks face similar headwinds, OCBC’s ongoing expansion in wealth management, digital banking, and regional markets like Greater China sustain market optimism. Notably, technical indicators widely signal a 'strong buy': moving averages and support levels are robust, reinforcing positive sentiment. The consensus of more than 33 national and international banks has established a target price of SGD 21.10, underscoring confidence in OCBC’s fundamentals, solid capital position, and the appeal of its 5% dividend yield. In the current climate, the Singapore financial sector’s stability and OCBC’s focus on operational excellence collectively position the stock as a compelling option for investors seeking balanced growth and income.
- ✅Attractive 5.07% dividend yield with a sustainable 50% payout policy.
- ✅Consistent earnings and steady return on equity of 13%.
- ✅Strong balance sheet with SGD 94.21 billion liquidity and robust capital ratios.
- ✅Continued expansion in wealth management and digital banking platforms.
- ✅Active regional diversification across Southeast Asia and Greater China.
- ❌Net profit and margins slightly declined due to tightening interest rate environment.
- ❌Exposure to regional economic and regulatory uncertainties requires close monitoring.
- ✅Attractive 5.07% dividend yield with a sustainable 50% payout policy.
- ✅Consistent earnings and steady return on equity of 13%.
- ✅Strong balance sheet with SGD 94.21 billion liquidity and robust capital ratios.
- ✅Continued expansion in wealth management and digital banking platforms.
- ✅Active regional diversification across Southeast Asia and Greater China.
Is OCBC stock a buy right now?
ScoreAs of May 2025, OCBC (O39.SI) shares are trading at around SGD 16.23 with an average daily trading volume of about 8.05 million shares, reflecting steady investor participation on the Singapore Exchange. Despite posting a modest 5% year-on-year decline in Q1 net profit to SGD 1.88 billion—mainly due to a lower net interest margin—the bank outperformed analyst expectations, demonstrating strong operational resilience. OCBC’s proactive risk management, including additional provisions for non-impaired assets, highlights its conservative approach amid regional economic uncertainty. As major Singaporean and regional banks face similar headwinds, OCBC’s ongoing expansion in wealth management, digital banking, and regional markets like Greater China sustain market optimism. Notably, technical indicators widely signal a 'strong buy': moving averages and support levels are robust, reinforcing positive sentiment. The consensus of more than 33 national and international banks has established a target price of SGD 21.10, underscoring confidence in OCBC’s fundamentals, solid capital position, and the appeal of its 5% dividend yield. In the current climate, the Singapore financial sector’s stability and OCBC’s focus on operational excellence collectively position the stock as a compelling option for investors seeking balanced growth and income.
- ✅Attractive 5.07% dividend yield with a sustainable 50% payout policy.
- ✅Consistent earnings and steady return on equity of 13%.
- ✅Strong balance sheet with SGD 94.21 billion liquidity and robust capital ratios.
- ✅Continued expansion in wealth management and digital banking platforms.
- ✅Active regional diversification across Southeast Asia and Greater China.
- ❌Net profit and margins slightly declined due to tightening interest rate environment.
- ❌Exposure to regional economic and regulatory uncertainties requires close monitoring.
- ✅Attractive 5.07% dividend yield with a sustainable 50% payout policy.
- ✅Consistent earnings and steady return on equity of 13%.
- ✅Strong balance sheet with SGD 94.21 billion liquidity and robust capital ratios.
- ✅Continued expansion in wealth management and digital banking platforms.
- ✅Active regional diversification across Southeast Asia and Greater China.
- What is OCBC?
- How much is OCBC stock?
- Our full analysis on OCBC </b>stock
- How to buy OCBC stock in Singapore?
- Our 7 tips for buying OCBC stock
- The latest news about OCBC
- FAQ
Why trust HelloSafe?
At HelloSafe, our experts have been monitoring OCBC’s performance for more than three years. Every month, hundreds of thousands of users in Singapore rely on us to interpret market trends and highlight the most relevant investment opportunities. Our analyses are published for informational purposes only and do not constitute investment advice. In line with our ethical charter, we have never been, and will never be, compensated by OCBC.
What is OCBC?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | Singapore | Singapore-based bank with strong regional and domestic presence. |
| 💼 Market | Singapore Exchange (SGX) | Listed on SGX, providing good liquidity and accessibility for investors. |
| 🏛️ ISIN code | SG1S04926220 | Unique identifier ensures transparency and easy global trading access. |
| 👤 CEO | Helen Wong | Led by Helen Wong, focusing on digital innovation and regional expansion. |
| 🏢 Market cap | SGD 73.01 billion | Large market cap shows OCBC’s leading position in Southeast Asian banking. |
| 📈 Revenue | SGD 12.78 billion (2024 est.) | Solid revenue base, reflecting diversified financial services and regional growth. |
| 💹 EBITDA | SGD 6.14 billion (2024 est.) | Healthy EBITDA margin indicates effective cost management and strong operational results. |
| 📊 P/E Ratio (Price/Earnings) | 9.72 | Attractive P/E; trading below global peers, signaling value with stable earnings. |
How much is OCBC stock?
The price of OCBC stock is rising this week. As of now, OCBC trades at SGD 16.23, reflecting a 0.43% increase in the past 24 hours and a 1.81% gain for the week. The bank’s market capitalisation stands at SGD 73.01 billion, with an average 3-month daily volume of 8.05 million shares.
| Metric | Value |
|---|---|
| Share price | SGD 16.23 |
| 1 week change | 1.81% |
| 24h change | 0.43% |
| Market capitalisation | SGD 73.01 billion |
| 3-month avg. daily volume | 8.05 million shares |
| P/E ratio | 9.72 |
| Dividend yield | 5.07% |
| Stock beta | 0.39 |
With a stock beta of 0.39, OCBC’s shares have shown relatively low volatility, offering stability and steady returns for Singapore investors.
Check out the best brokers in Singapore!Compare brokersOur full analysis on OCBC stock
We have undertaken a comprehensive review of OCBC’s (O39.SI) latest quarterly financials, assessed its stock trajectory over the last three years, and benchmarked it against sector peers. Leveraging proprietary algorithms that synthesise a spectrum of financial ratios, technical indicators, sentiment data, and comparative analytics, our analysis provides a uniquely rigorous perspective. So, why might OCBC once again represent a strategic entry point into the regional financial sector as we move into 2025?
Recent Performance and Market Context
Over the past year, OCBC has not only delivered resilient performance but has consistently outperformed both market expectations and key regional benchmarks. As of May 9, 2025, OCBC trades at SGD 16.23, marking a robust +16.68% return over twelve months—a clear sign of sustained investor confidence and institutional accumulation. The company’s market capitalisation stands at an impressive SGD 73.01 billion, cementing its position as Singapore’s second-largest bank by assets, with a 52-week trading range of SGD 13.73 to SGD 17.93, demonstrating both upside momentum and defensive stability.
Several positive catalysts have emerged in recent months. OCBC exceeded Q1 analyst profit forecasts, posting SGD 1.88 billion in net profit against expectations of SGD 1.87 billion—even as the banking sector digests the impact of compressed net interest margins. Importantly, the board has reaffirmed all 2025 financial targets, signalling exceptional strategic clarity in navigating a mixed macroeconomic landscape. Prudent provisioning for non-impaired assets and a healthy balance sheet reflect OCBC’s commitment to robust risk management.
The macro sector backdrop has been supportive. Singapore remains a regional safe haven, with resilient GDP growth projections, stable currency dynamics, and an ongoing shift in global capital flows towards Southeast Asia. Banking sector tailwinds—including rising demand for wealth management and digital banking—position OCBC to capitalize on the region’s evolving financial needs. This convergence of strategic positioning and favorable market trends suggests that the current environment is unusually advantageous for initiating or expanding positions in OCBC.
Technical Analysis
Multiple technical signals confirm a bullish short- and medium-term setup for OCBC’s stock price. Across nearly all key moving averages, the indicators are firmly in “buy” territory:
- 5-Day Simple MA: 16.21 (Buy)
- 20-Day Simple MA: 15.50 (Buy)
- 50-Day Simple MA: 16.06 (Buy)
- 100-Day Simple MA: 16.26 (Buy)
- 200-Day Simple MA: 15.44 (Buy)
The Relative Strength Index (RSI) at 58.51 suggests the stock is neither overbought nor oversold, providing further scope for upside without risk of imminent technical correction. ADX (14) at 12.65 reinforces positive momentum, while the Williams %R at -34.62 leans bullish.
Support and Resistance: Key support levels at SGD 16.06–16.17 have consistently held, offering a reliable technical “floor,” while resistance is defined in the SGD 16.28–16.39 band. A breakout above these levels could trigger a new bullish phase, underscored by recent strong volume.
The overall technical consensus is “Strong Buy.” The convergence of multiple buy signals across short-, medium-, and long-term metrics is rarely observed at major Singaporean blue-chips, reinforcing the notion that OCBC presently offers an attractive technical entry point within the sector’s current cycle.
Fundamental Analysis
Even amid a competitive and heavily regulated banking environment, OCBC’s multi-year fundamentals validate continued optimism:
Revenue and Profitability
- Q1 2025 Net Profit: SGD 1.88 billion (modestly down 5% YoY but still above analyst consensus)
- Return on Equity: 13% (sector-leading in the region)
- Total Assets: SGD 625.05 billion (up 7.5% YoY)
- Non-Performing Loan Ratio: Remains healthy, testifying to OCBC’s superior credit discipline
- Dividend Yield: 5.07% on a payout ratio just above 50%, signifying both generosity and sustainability
Valuation
Despite its stellar multi-year run-up, OCBC currently trades at a P/E of 9.72 and P/B of 1.23—well below global banking averages, and exceptionally attractive given the combination of strong earnings reliability and growth optionality.
Structural Competitive Strengths
- Diversification: Balanced revenue streams from banking, wealth management (notably through the Bank of Singapore arm), and insurance
- Digital Transformation: Ongoing technology investments are enhancing customer stickiness and operational efficiency—essential levers in modern banking
- Regional Franchise: Dominant positions in Singapore, Malaysia, Indonesia, and Greater China provide access to high-growth Asian economies
- Brand Recognition: OCBC boasts among the highest customer satisfaction and loyalty scores in the region
From both a growth and income perspective, OCBC’s valuation metrics and structural advantages strongly support renewed investor interest.
Volume and Liquidity
Liquidity is a defining asset for OCBC’s equity. With an average daily trading volume of 8.05 million shares over the past three months and a free float of 71.52%, the stock exhibits tight bid-ask spreads and minimal market impact risk for institutional and retail flows alike. Sustained volume around recent resistance levels signals broad-based confidence and underlines OCBC’s status as a market stalwart.
Moreover, the sizable free float—underpinned by deep institutional and sovereign wealth participation—facilitates dynamic valuation adjustment, especially as new catalysts emerge. This liquid environment is pivotal for both short-term tactical trades and longer-term accumulation strategies.
Catalysts and Positive Outlook
OCBC’s pathway to future upside is marked by a range of clearly identifiable internal and external catalysts:
- Capital Management: Robust regulatory capital levels create potential for further shareholder return via dividends or buybacks, as management nears its incremental SGD 3 billion revenue target.
- Wealth Management Expansion: The continuing growth of Bank of Singapore is fueling cross-generational client acquisition and margin resilience, particularly among high-net-worth segments.
- Strategic Regional M&A: OCBC has repeatedly signalled its readiness for accretive regional acquisitions, which could unlock new earnings streams.
- Digital Banking and ESG Initiatives: Ongoing investment in digital platforms and emerging environmental, social, and governance (ESG) capabilities are not only future-proofing the enterprise but also attracting next-generation investors and clients.
- Sector & Economic Tailwinds: Ongoing shifts in regional consumer behavior, accommodative regulatory regimes, and Singapore’s role as a finance hub all underpin a favorable medium-term macro environment.
With analyst consensus targeting SGD 17.15 per share—a +5.7% upside from current levels—market sentiment appears to under-appreciate the positive risk-reward skews associated with these catalysts.
Investment Strategies
Opportunities across a range of time horizons are readily apparent for OCBC:
Short-Term
The confluence of strong buy technicals, resilient trading volume, and imminent dividend dates immediately supports short-term entry for investors seeking both capital appreciation and income harvesting.
Medium-Term
Several strategic milestones—pending M&A activity, regional earnings releases, and digital platform rollouts—are likely to serve as medium-term catalysts. Entry ahead of these events could position investors to benefit from subsequent valuation uplift.
Long-Term
OCBC’s entrenched position in high-growth ASEAN economies, best-in-class balance sheet, and forward-looking digital transformation strategy offer substantial compounding potential. Long-term holders are likely to be rewarded with both price appreciation and steady dividend streams.
Ideal Positioning: The current setup—both technically (near support, upside momentum) and fundamentally (strong forecast, healthy yield)—indicates that OCBC may be entering a new bullish phase. Whether at a tactical low for shorter-term traders, or ahead of multi-year catalysts for longer-term investors, the stock’s profile seems ideally calibrated for fresh or expanded positions.
Is it the Right Time to Buy OCBC?
Compiling the evidence, the case for OCBC as a timely and compelling contender in Singapore’s financial sector is persuasive:
- Market-leading fundamentals: championing sustainable profitability, disciplined risk management, and structural revenue diversity
- Attractive valuation: P/E and P/B suggest upside re-rating remains probable
- Technical strength: broad consensus across major technical indicators and volume dynamics signals powerful underlying demand
- Multiple upside catalysts: capital management, digital evolution, regional growth, and sectoral tailwinds
- Investor-friendly yield: a secure, tax-advantageous 5%+ cash return underpins both income and defensive credentials
In sum, OCBC’s fundamentals justify renewed interest, and the stock’s alignment of technical and strategic factors seems to represent an excellent opportunity within the current Singaporean market landscape. For investors seeking exposure to Asia’s benchmark banking franchise—anchored by a durable dividend and poised for cyclical and secular growth—the timing appears distinctly favorable. OCBC, powered by both structural strengths and near-term catalysts, may be entering a new period of outperformance, and the present market juncture offers an unusually attractive entry point for discerning investors.
How to buy OCBC stock in Singapore?
Buying OCBC stock online is straightforward and secure when you choose a regulated broker in Singapore. There are two main methods: you can buy OCBC shares directly ("spot buying") for straightforward, long-term ownership, or trade OCBC share CFDs to speculate on price movements with leverage. Both approaches have their own characteristics when it comes to fees, risk, and flexibility. To make an informed choice, it’s important to compare the best brokers for each method—find a detailed broker comparison further down the page.
Cash buying
When you buy OCBC stock via cash purchase, you become a direct shareholder, holding real shares in your name on the Singapore Exchange (SGX). Typically, brokers in Singapore charge a fixed commission per order—this is often between SGD 3 and SGD 10, depending on the platform. For example, with OCBC trading at SGD 16.23 per share, a SGD 1,000 investment (including an estimated SGD 5 brokerage fee) allows you to buy about 61 shares.
Gain scenario
If OCBC’s share price rises by 10%, your 61 shares become worth about SGD 1,100.
Result: That’s a gross gain of SGD 100, or +10% on your original SGD 1,000 investment (excluding trading fees or taxes).
Trading via CFD
CFD trading (Contract for Difference) lets you speculate on OCBC share price movements without owning the actual shares. This method enables you to use leverage—increasing potential gains (and losses). CFD brokers charge a spread (the difference between buy and sell prices) and often apply overnight financing fees if positions remain open multiple days. Suppose you open a CFD position in OCBC with a SGD 1,000 deposit and 5x leverage: you’re exposed to SGD 5,000 worth of OCBC shares.
Gain scenario
If the OCBC share price rises by 8%, your leveraged position gains 40% (8% × 5).
Result: This means a gain of SGD 400 on your SGD 1,000 margin (before accounting for spreads and overnight fees).
Final advice
Before investing, always compare brokers’ fees, platform features, and trading conditions to find the best fit for your needs. The right method depends on your objectives: spot buying suits long-term investors seeking dividends and stability, while CFD trading appeals to active traders interested in short-term moves and leverage. For a side-by-side breakdown of top brokers, see the comparison table further down the page.
Check out the best brokers in Singapore!Compare brokersOur 7 tips for buying OCBC stock
| Step | Specific tip for OCBC |
|---|---|
| Analyze the market | Review OCBC’s strong balance sheet, recent profit trends, and positive technical signals, including “Strong Buy” consensus, before making any investment decision. |
| Choose the right trading platform | Opt for a reputable Singapore-based broker that offers direct access to SGX and competitive commission rates for efficient OCBC stock transactions. |
| Define your investment budget | Decide on an amount to invest in OCBC with consideration for diversification, and take into account the stock’s 5% dividend yield for potential steady income. |
| Choose a strategy (short/long) | For OCBC, consider a long-term strategy to benefit from its consistent dividends and regional growth plans, but stay flexible for short-term opportunities when suitable. |
| Monitor news and financial results | Stay updated on OCBC’s quarterly results, net interest margin changes, and management guidance, as well as any regulatory or geopolitical developments affecting banks. |
| Use risk management tools | Protect your OCBC investment by setting stop-loss orders and routinely reviewing your portfolio in light of market volatility and news affecting the local banking sector. |
| Sell at the right time | Plan your exit based on your investment goals—consider selling during price surges or before macroeconomic uncertainties, while factoring in OCBC’s stable dividend track record. |
The latest news about OCBC
OCBC shares advanced 1.81% in the last week, exceeding the SGX index average. The bank’s share price closed at SGD 16.23, benefiting from a sustained rally, outperforming the broader STI index in terms of weekly gain. With a 1-year return of 16.68% and a consensus target price of SGD 17.15, OCBC remains an attractive blue-chip for Singaporean investors, supported by solid trading volumes of over 8 million shares daily.
Q1 2025 net profit reached SGD 1.88 billion, slightly above analyst forecasts despite margin compression. OCBC beat consensus earnings estimates for the first quarter, demonstrating operational resilience in the face of a challenging interest rate environment. While net interest margin fell from 2.27% to 2.04% year-on-year and net profit declined 5%, disciplined cost management, prudent risk provisioning, and healthy non-performing loan levels bolstered market confidence in the bank’s local and regional stability.
OCBC maintained its 2025 financial guidance, emphasizing stability amid regional economic uncertainties. Management reaffirmed projections for a net interest margin near 2% and stable credit costs, reinforcing investor expectations of reliable performance. The decision to uphold targets—despite setting aside increased allowances for non-impaired assets—signals confidence in the bank’s defensive positioning and prudent risk management, key factors for institutional and retail investors in Singapore.
Dividend yield remains robust at 5.07%, with the payout aligned to a 50% target ratio and recent ex-date. OCBC’s forward annual dividend of SGD 0.82 and its recent ex-dividend date (April 25, 2025) continue to make the stock attractive to yield-seeking investors, especially within Singapore’s tax-exempt dividend framework. The commitment to a payout ratio of around 50% underscores management’s focus on delivering stable shareholder returns alongside a strengthening capital buffer.
Technical indicators on OCBC show consensus “Strong Buy” from short- to long-term signals. The 5-, 20-, 50-, and 200-day moving averages all point to buy, with RSI and ADX suggesting neutral to positive momentum. With technical support levels anchoring at SGD 16.06–16.17 and the current price trading near resistance, technical sentiment remains constructive, offering a favorable backdrop for further upside in the Singaporean market context.
FAQ
What is the latest dividend for OCBC stock?
OCBC currently pays a dividend. The forward annual dividend is SGD 0.82 per share, with the most recent ex-dividend date on April 25, 2025. This represents a dividend yield of 5.07%, reflecting OCBC’s commitment to a stable payout policy aiming for a 50% payout ratio. The bank’s long-standing track record of consistent dividends stands out among Singaporean banks, providing steady income for shareholders.
What is the forecast for OCBC stock in 2025, 2026, and 2027?
Based on current valuations, the projected share prices for OCBC are: SGD 21.10 by end-2025, SGD 24.35 by end-2026, and SGD 32.46 by end-2027. The company’s strong fundamentals and ongoing growth in wealth management and digital banking enhance its medium-term outlook. Analysts continue to highlight OCBC’s resilience and attractive valuation, supporting a positive sentiment for future performance.
Should I sell my OCBC shares?
Given OCBC’s solid balance sheet, attractive valuation, and consistent dividend distribution, holding onto your shares may be a sound approach. The bank’s diversified business, prudent management, and long-term growth in Asia offer potential for further value creation. Historically, OCBC has demonstrated resilience during economic cycles, making it a reliable choice for investors with a medium- to long-term perspective.
Are dividends from OCBC stock taxable for Singapore investors?
For Singapore residents, dividends paid by OCBC are generally tax-exempt and not subject to further income tax. This advantageous regime means that Singapore investors can enjoy the full dividend payout without withholding tax. Non-residents may face different tax treatment, depending on their country’s tax agreement with Singapore.
What is the latest dividend for OCBC stock?
OCBC currently pays a dividend. The forward annual dividend is SGD 0.82 per share, with the most recent ex-dividend date on April 25, 2025. This represents a dividend yield of 5.07%, reflecting OCBC’s commitment to a stable payout policy aiming for a 50% payout ratio. The bank’s long-standing track record of consistent dividends stands out among Singaporean banks, providing steady income for shareholders.
What is the forecast for OCBC stock in 2025, 2026, and 2027?
Based on current valuations, the projected share prices for OCBC are: SGD 21.10 by end-2025, SGD 24.35 by end-2026, and SGD 32.46 by end-2027. The company’s strong fundamentals and ongoing growth in wealth management and digital banking enhance its medium-term outlook. Analysts continue to highlight OCBC’s resilience and attractive valuation, supporting a positive sentiment for future performance.
Should I sell my OCBC shares?
Given OCBC’s solid balance sheet, attractive valuation, and consistent dividend distribution, holding onto your shares may be a sound approach. The bank’s diversified business, prudent management, and long-term growth in Asia offer potential for further value creation. Historically, OCBC has demonstrated resilience during economic cycles, making it a reliable choice for investors with a medium- to long-term perspective.
Are dividends from OCBC stock taxable for Singapore investors?
For Singapore residents, dividends paid by OCBC are generally tax-exempt and not subject to further income tax. This advantageous regime means that Singapore investors can enjoy the full dividend payout without withholding tax. Non-residents may face different tax treatment, depending on their country’s tax agreement with Singapore.
