“We believe OCBC’s wealth platform is well-positioned for cross-selling efforts and product tie-ups across its franchise,” says analyst Ng Li Hiang in a Monday report. “ For example, some Bank of Singapore’s (OCBC’s private banking arm) products could also flow to the bank’s premier and consumer banking segments.”
OCBC has also invested in technology, such as voice biometrics and artificial intelligence in order to engage customers more efficiently. These investments can result in productivity gains and cost efficiencies. However, Ng estimates costs to increase by 3-4% from FY17 to 19E.
OCBC shares are trading 7 cents higher at $10.62.
