OCBC Bank - Maybank Research 2025-02-26: Synergies Strong, Capital Returns Lagging. Downgrade To HOLD.

• OCBC is focused on leveraging its cross-border platform to drive growth. Its ‘One OCBC’ strategy is delivering synergies and should support interest and non-interest income upside as supply chains shift South.
• - Read this at SGinvestors.io -
• We prefer UOB for regional growth and larger capital returns.

Cross-border growth engine

• OCBC’s FY24 earnings were in-line. FY24 loans saw significant expansion (+7.6% y-o-y) ahead of peers. Importantly, Greater China credit growth turned positive (+4.5%) after 2 years of declines. Malaysia also saw punchy expansion.
• - Read this at SGinvestors.io -
• Management is guiding for NIMs to go lower in FY25E. Partly this is from OCBC’s in-house view of 3 Fed rate cuts. However, we believe it also partly implies a focus on competitive market share gains going forward. We have lowered FY25-26E NII by 3-4%.

Non-interest income shows good execution

• Read more at SGinvestors.io.

Above is an excerpt from a report by Maybank Research.
Clients of Maybank Securities may be the first to access the full PDF report @ https://www.maybanktrade.com.sg/.

Read also Maybank's most recent report:
2025-11-07 OCBC Bank - Upgrade To BUY For Synergies & More Capital Returns.

Previous report by Maybank:
2025-08-03 OCBC Bank - Near-term Uncertainty; Maintain HOLD..

Price targets by 4 other brokers at OCBC Target Prices.

Listing of research reports at OCBC Analyst Reports.

Relevant links:
OCBC Share Price History,
OCBC Announcements,
OCBC Dividend Payout Dates & Corporate Actions,
OCBC News