OCBC breaches S$100 billion market cap as shares hit record high

[SINGAPORE] A record share price for OCBC has propelled the bank’s market capitalisation past the S$100 billion mark, making it one of only two Singapore-listed companies in the exclusive club.

Shares of the bank rose as much as 3.1 per cent on Wednesday (Apr 1), rising to a peak of S$22.65 in the first few minutes of trading. The counter later pared some of those gains to close at S$22.55, up 2.6 per cent or S$0.58 from its Tuesday closing price.

OCBC’s rise comes amid a broader regional recovery. Asian markets rose on Wednesday, tracking Wall Street gains, after US President Donald Trump on Tuesday suggested an end to his country’s military campaign in Iran within weeks.

Explaining the rally, Morningstar equity analyst Kathy Chan told The Business Times that OCBC’s shares appear to be “catching up” after underperforming DBS in 2025.

Its rebound has been supported by a “relatively resilient” banking sector despite macro uncertainties resulting from the Middle East conflict, she added.

Macquarie’s head of Asean equity research, Jayden Vantarakis, also named OCBC his top Singapore bank pick.

In a research note on Tuesday, he pointed out that OCBC had the best fourth-quarter results in the 2025 financial year among the three local banks.

OCBC in February reported that its Q4 net profit rose 3 per cent to S$1.75 billion, up from S$1.69 billion in the year-ago period.

Meanwhile, UOB’s Q4 earnings declined 7 per cent year on year to S$1.4 billion; DBS reported a 10 per cent drop to S$2.26 billion.

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Vantarakis said that beyond OCBC’s strong earnings performance, its shift in capital management also gives a strong indication that it can maintain a 60 per cent profit payout this year.

Moreover, while all three local banks should benefit from wealth inflows, OCBC has a “strong starting point” on higher general allowances and non-performing asset (NPA) coverage expected for rising bad loans, he added.

Citi analysts, however, had a preference for DBS over OCBC. It nonetheless retains a “buy” rating on the latter.

In a note on Mar 18, Citi analysts flagged risks to wealth fee income, estimated at a 2 per cent earnings impact for OCBC – compared to 1 per cent for UOB and 3 per cent for DBS – if equity sentiment softens.

This was alongside concerns over a slowdown in net new money following recent Monetary Authority of Singapore statistics.

With UOB, meanwhile, Morningstar’s Chan pointed out that the lender’s asset quality remains a lingering concern for investors.

While she does not expect a repeat of the large provisions it took in the third quarter of 2025, its greater exposure to regional economies and small and medium-sized enterprises implies a higher risk profile relative to its peers.

This came after UOB’s non-performing loan ratio stood at 1.5 per cent, higher than DBS at 1 per cent and OCBC at 0.9 per cent. The asset quality gap could explain why UOB’s share price has lagged behind OCBC’s record-breaking run.