To The Moon

🌟 OCBC Bank Shines Bright: Why It’s Up 3% and Why I’m Shifting from dollar averaging UOB to DBS and OCBC

The Singapore banking landscape has been buzzing this week, and one clear winner emerged

 — OCBC Bank. The share price rose by about 1%, catching the attention of investors who value both yield and growth. I’ll share why OCBC performed so well today, what’s driving its latest earnings momentum, and why I’ve made the strategic decision to move out of UOB and rotate into DBS and OCBC.

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💹 Market Rotation: Why OCBC Shares Are Gaining Momentum

When I looked at today’s market, it became clear that funds are flowing toward quality. OCBC’s rise of around 1% isn’t just random market noise — it reflects a rotation of smart money. Investors are shifting from UOB, which recently reported disappointing earnings, into banks that continue to deliver steady performance and strong capital discipline.

UOB’s earnings were hurt by higher credit allowances and slowing interest margins. In contrast, OCBC remains resilient, posting stable profits, strong non-interest income, and maintaining clean asset quality. That makes OCBC the safe haven within the sector — dependable and still offering a respectable yield. Investors today want stability with upside, and OCBC provides exactly that combination.

⸻$OCBC Bank(O39.SI)$  

📊 Strong Fundamentals Backing the Rally

OCBC’s financial strength speaks volumes. With its latest share price trading at around S$17.24, the bank boasts a price-to-earnings ratio of 10.7, a price-to-book of 1.28, and a dividend yield of 4.76%. These are healthy metrics that show the bank is attractively valued while maintaining solid profitability.

Its earnings per share hover around S$1.61 to S$1.67, reflecting consistent performance even amid interest-rate volatility. With a 52-week low of S$13.52, OCBC has climbed steadily through the year, showing both resilience and investor confidence. For me, this kind of performance signals that the market is recognizing OCBC’s reliability and strong fundamentals.

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💰 Earnings Growth Despite Headwinds

OCBC’s latest results show a bank navigating headwinds with remarkable finesse. Net profit remains near record highs, supported by a diversified business model that goes beyond traditional lending. While net interest income moderated slightly due to a softer margin environment, the bank compensated beautifully with strong non-interest income growth from its wealth management and trading divisions.

Fee income surged double digits thanks to strong client activity, while trading income also expanded. OCBC’s management executed disciplined cost control, keeping its cost-to-income ratio comfortably below 40%. That kind of efficiency allows the bank to stay profitable even when rates soften. It’s a textbook example of a financial institution that manages volatility, rather than being managed by it.

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🏦 Capital Strength and Shareholder Rewards

One of the biggest reasons I’m bullish on OCBC is its strong capital base and generous shareholder returns. The bank maintains robust equity ratios, low non-performing loans (below 1%), and has recently announced a capital return plan worth billions through a mix of share buybacks and special dividends.

That tells me two things: first, OCBC is confident in its financial health; second, it’s committed to rewarding shareholders directly. A consistent dividend payout of S$0.82 per share, combined with its sustainable yield near 5%, makes it highly attractive in a market where investors are craving stable income. In my view, OCBC’s management has struck the right balance between growth investment and capital discipline.

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📈 A Beautiful Technical Picture

The chart tells the story elegantly. After months of consolidation around the S$16.50 range, OCBC’s stock recently broke higher, touching S$17.35. The breakout coincides with increasing volume — a bullish confirmation that institutional buyers are accumulating.

Short-term moving averages are turning upward, showing momentum returning. The support levels at S$16.70–S$16.80 have held strongly, while the next resistance sits around S$18. With steady momentum and rising confidence in Singapore’s financial sector, I believe OCBC still has room to trend higher, especially if upcoming earnings remain strong.

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💼 Why I’m Selling UOB and Pivoting Toward DBS and OCBC

After reviewing recent results across the three local giants, the choice was clear. UOB’s third-quarter profit plunged over 70% due to higher credit provisions and weaker margins. That magnitude of decline signals that its risk management may be tightening aggressively at the expense of earnings growth. When a bank starts to focus more on damage control than expansion, it’s time to rotate out.

On the other hand, DBS continues to impress with its scale and execution. Its most recent quarter showed near-record income, beating analyst expectations, while maintaining a healthy dividend payout. DBS remains the market leader in digital transformation and wealth management.

And then there’s OCBC — the steady performer with a strong dividend and balanced earnings. While DBS shines for growth and innovation, OCBC provides defensive strength and predictable returns. By selling UOB and re-allocating to DBS and OCBC, I’m positioning into banks that actually deliver on both performance and capital efficiency.

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🌏 Regional Diversification and Growth Outlook

Another key factor supporting OCBC’s momentum is its regional presence. Beyond Singapore, OCBC has meaningful exposure to Malaysia, Indonesia, and Greater China through subsidiaries like Bank of Singapore and OCBC Wing Hang. These regions offer long-term growth opportunities as wealth management and trade finance expand.

The bank’s overseas profit contribution continues to rise steadily, giving it an extra growth cushion. With economic recovery across Southeast Asia and stabilizing credit conditions in China, OCBC’s international diversification is becoming a tailwind rather than a drag. That’s why I see the current rally as not just a one-day pop but part of a broader uptrend reflecting confidence in its regional strategy.

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🧭 What to Watch Going Forward

While OCBC’s trajectory looks promising, I’m also mindful of what could influence its next phase. The key watchpoints are:

1. Net Interest Margin (NIM) – likely to moderate slightly if global rates soften in 2026.

2. Loan Growth – expected to remain mid-single digits, which is healthy but not aggressive.

3. Non-Interest Income – the sustainability of wealth and fee income will be critical.

4. Macroeconomic Stability – as always, regional growth trends and credit cycles will shape profitability.

As long as OCBC keeps its costs low, grows its fee-based business, and maintains asset quality, the current uptrend has solid foundation to extend further.

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💎 Why OCBC Deserves the Spotlight

I see OCBC as the perfect blend of stability and value. It’s not chasing growth recklessly; it’s expanding smartly and rewarding shareholders generously. Its valuation remains modest, yet it delivers consistent performance and dividend reliability that few in the region can match.

The stock’s current momentum, supported by both earnings and sentiment, shows that investors appreciate its consistency. With markets growing uncertain about the direction of global interest rates, OCBC’s defensive appeal and robust dividend yield make it an ideal holding for both conservative and growth-oriented portfolios.

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🏰 My Closing Thoughts

From my vantage point, OCBC is positioning itself beautifully for the next cycle. I’ve shifted my allocation away from UOB, whose earnings shock signalled caution, and into DBS and OCBC — two names that are still executing with precision. DBS provides leadership and innovation, while OCBC offers dependable income and regional strength.

Today’s 1% rise in OCBC’s share price is a reflection of renewed investor confidence. It’s not just a bounce; it’s a vote of trust in its long-term story. With a price base near S$17, strong fundamentals, and sustainable dividends, I see more room for appreciation.

As the market continues to reward discipline and stability, I’ll keep holding OCBC as one of my core Singapore blue-chip positions. It’s the quiet achiever — the bank that rewards patience, pays well, and stays elegant through every cycle. 🌿💎

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