CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

OCBC share price: what to look out for in its Q3 results

As the OCBC Bank's third quarter earnings fast approaches, we take a look at where analysts think the company's share price is heading in the in the next 12-months.

Given that Oversea-Chinese Banking Corporation or OCBC Bank (SGX: O39) is set to report their Q3 results in under a week, we take a look at how the company has performed recently and where analysts think its stock is heading next.

On an intraday basis, the OCBC share price rose to S$10.99 per share today, as of 17:25 AEST.

OCBC Bank share price: the half that was

During the first-half of the 2019 fiscal year, OCBC saw its profits (NPAT) rise an impressive 6%, hitting S$2.45 billion for the half.

As part of this result, both net interest and non-interest income witnessed robust growth, rising high single-digits and low double-digits, respectively.

In the first instance, net interest income rose to S$3.12 billion during the first-half – up 9% from the year prior. According to the bank, these gains were ‘led by loan growth and an 11 basis points increase in NIM as higher asset yields outpaced the rise in funding costs.’

Comparatively, non-interest income grew even faster, rising ‘12% year-on-year to S$2.17 billion from both banking and insurance operations.’

Finally, the bank reported a small uptick in its annualised return on equity (ROE) – reaching 11.7% in the first-half of 2019. Earnings per share (EPS) moved up in step, reaching S$1.15 – up from S$1.06 from the year prior.

For income focused investors, OCBC’s emphasises on growing its dividends is also likely a pleasing development in recent times. Here, the bank reported a 25 cent per share interim dividend during H1 – an increase of 25% or 5 cents on the corresponding period.

The outlook moving forward

Building on these results, OCBC's CEO – Samuel Tsien commented that:

‘We are pleased to report another strong quarterly performance. Loan growth was sustained and NIM continued to improve. Fee income rose quarter-on-quarter, led by higher wealth management fees, with our private banking AUM climbing to new levels.'

Mr Tsien continued by noting:

‘While economic growth in our key markets is slowing, our healthy capital, funding and liquidity position will allow us to comfortably navigate the challenging operating environment and pursue our long-term growth strategy. This also gives us the flexibility to capitalise on market expansion opportunities as they arise.’

Investors will likely be keen to see just how well management has managed this difficult macro backdrop when the bank reveals its third quarter results next week.

Adding to this, Mr Tsien’s confidence seems neither completely replicated by the market nor analysts. In fact, the analyst outlook for OCBC remains decisively mixed, with 11 analysts rating the stock a buy and ten analysts rating the stock a hold. Positively at least, no analysts rate the blue-chip bank a sell, according to Bloomberg Data.

In saying that, analysts from Bloomberg do believe that growth in the bank’s wealth management business may support revenue expansion going forward.

According to Bloomberg Data, the average 12-month share price target on OCBC is S$12.45 – a modest increase on the last cited price of S$10.98.

OCBC is expected to release its Q3 results on November 5.

Practise trading local and international stocks with an IG demo account now


The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.

Act on share opportunities today

Go long or short on thousands of international stocks with CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.