To The Moon

$OCBC Bank(O39.SI)$

shares currently rank as the top performing index stock on the Straits Times Index, soaring 59.7% year-to-date, versus the STI’s 23.8% return and outperforming its banking peers DBS (+35.7%) and UOB (+17.4%)

The stock’s upward momentum has been further reinforced after its announced 2Q earnings on 7 Aug, leading the stock to gain another 8.4% to a fresh record of $31.79 on 14 Aug

OCBC call warrants rank in the top two gainers spot over the past 8 weeks from 19 Jun to 14 Aug, with gains up to 335% given OCBC’s 29.1% return over the same period, while an OCBC put warrant 8E3W emerged as the top loser over the same period with a 97.5% loss

listed a new pair of OCBC call and put warrants: OHBW and OGMW for investors to gain leveraged exposure to OCBC shares both on the short-term upside and downside

✍Those interested in OCBC’s recent earnings highlight, as well as Macquarie Research’s (MQ) view on the stock may wish to read on for the full report published on 7 Aug 2026, as well as important disclaimers:

Key points

• OCBC's 2Q26 profits beat on strong non-interest income. Lending activity increased and the bank raised its full-year lending target

• Wealth continues to be a strong point with 44% year-on-year (YoY) wealth fee growth and 60% YoY treasury customer sales. Management was upbeat on the outlook

• MQ raises earnings per share 4-8% in 2026-2028 to reflect higher non-interest income and loan growth, and lower credit costs. MQ also raises their price target 14% to S$31.69

2Q26 results beat expectations. Profits of S$2.22b were ahead of MQ’s estimate (S$2.0 billion) on insurance and trading income, including customer treasury sales. Loan growth, at 12%, is also tracking ahead of prior guidance. Management raised its loan growth guidance to high single digit to low double-digit loan growth, but kept other measures unchanged including the 20-25 basis points credit cost range (1H26: 14 basis points) and 40% Cost/Income (1H26: 38.5%).

Wealth remains a positive driver, with 2Q26 fees rising 44% YoY. Treasury customer sales (part of trading income) also rose 60% YoY, led by wealth. Like peers, OCBC is still assessing the impact of China's regulatory changes but expects the impact is manageable. The bank has been investing heavily to grow its Hong Kong wealth presence, and noted trusts are a small part of asset under management and not a material generator of fees.

Capital being invested for growth. The bank is operating, on a fully loaded Basel IV basis, at 14% CET1 - its optimal regulatory capital level. The payout ratio remains 50%, though the unutilised buyback funds will be returned as a special FY26 final dividend of S$800 million (~$0.18/share). No fresh return on equity targets were shared during the briefing, but further details could emerge later this year, MQ thinks

Earnings changes: MQ raises their earnings per share by 4-8% to reflect stronger non-interest income, higher loan growth estimates and a lower credit cost

Valuation: MQ raises their Gordon Growth Model based price target 14% to S$31.69 and reiterate Outperform.

Catalysts: Strategic updates later in 2H26, including updated return on equity targets; M&A, where management are keen to add wealth/retail portfolios into the business.

Note:Macquarie Research is independent from the Warrants business, what the Macquarie Warrants desks quote from Macquarie Research may not reflect the complete analysis of Macquarie Research on the relevant company over time.

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Macquarie’s newly listed OCBC call and put warrants provide leveraged exposure to OCBC shares while requiring a lower capital outlay than a direct investment in OCBC shares.

Both warrants will also be the trending OCBC warrants with the highest liquidity and tightest spreads amongst all OCBC warrants available.

Call warrant $OCBC Bk MB eCW270225(OHBW.SI)$ is priced at $0.061 as OCBC shares trade at $31.20 (as of 903AM this morning) while  put warrant $OCBC Bk MB ePW270225(OGMW.SI)$ is priced at $0.062. Both will move approximately six to eight times more than OCBC shares, based on their current effective gearing levels.

Use the Exposure Simulator to compare the warrants’ investment outlay compared to a similar exposure to OCBC shares, and to see the warrants’ simulated returns and maximum holding periods based on your price targets on OCBC.

Watch a 7-minute tutorial on how to use the tool: https://www.youtube.com/watch?v=uT6oleWgr00

Call OHBW: https://warrants.com.sg/tools/exposuresimulator/OHBW

Put OGMW: https://warrants.com.sg/tools/exposuresimulator/OGMW