RHB expects net interest income to post a "slight to moderate" decline in 2026 as guided, due to NIM pressure. On the other hand, continued asset growth from strong liquidity flows will provide some cushion.
RHB Bank Singapore has raised its target price for Oversea-Chinese Banking Corp to $24.65 from $23.45, even though the upcoming 1QFY2026 patmi to be announced on May 8 is seen to be "marginally" lower y-o-y on lower net interest margin, but up q-o-q following a seasonally slower fourth quarter.
"In our view, OCBC’s solid balance sheet and sound asset quality metrics offer investors a good defensive hideout while still benefiting from the influx of liquidity and wealth flows into the country," says RHB.
