OCBC announced on July 11 that head of global wholesale banking Tan Teck Long will be appointed its group CEO on Jan 1, 2026.
Tan will succeed Wong, who is retiring on Dec 31. He has been appointed deputy CEO at OCBC.
Tan joined OCBC in March 2022 from DBS Bank, where he was chief risk officer.
Similar to Wong, Tan has experience as head of wholesale banking with past experience in Greater China, notes Citi’s analyst.
See also: OCBC group CEO Helen Wong to retire end-2025; successor Tan Teck Long appointed deputy CEO
How might investors react? Citi’s Tan notes that OCBC outperformed peers the day after Wong was appointed group CEO on Jan 8, 2021. That said, United Overseas Bank (UOB) closed the underperformance by the end of that month.
As at 1.25pm, OCBC shares are up 7 cents, or 0.41% higher, at $16.95.
See also: PhillipCapital initiates coverage on Frencken with ‘buy’ and TP of $1.76
Year to date, OCBC saw the heaviest net institutional outflows compared to DBS Group Holdings and UOB.
Citi is “neutral” on OCBC, with a target price below its current trading price; Citi’s Tan has a $15.80 target price on OCBC, with expected dividend yield of 5.8% and an expected total return of -0.7%.
Citi’s Tan has opened a “short-term upside view” after the Great Eastern Holdings (GEH) offer lapsed on July 8, potentially forcing the insurer to resume trading on the Singapore Exchange. This upside view expires Aug 8, according to the analyst.
Charts and table: Citi
