OCBC shares fall following Citi downgrade amid interest rate shifts

OCBC shares experienced a significant decline on Wednesday, October 7, 2026, dropping as much as 5.2 per cent in intraday trading. The decline followed a downgrade by Citi, which moved the bank from “neutral” to “sell” with a target price of S$27.50, citing expectations of flat year-on-year earnings for the third quarter.

Other major Singaporean banks also saw declines, with DBS falling 1 per cent and UOB dropping 1.5 per cent. While analysts at UOB Kay Hian expressed caution regarding the banking sector due to Middle East geopolitical uncertainties, they maintained OCBC as a preferred “buy” due to its wealth management growth.

In a separate analysis, RHB’s Singapore Research team noted that rising interest rates could benefit OCBC and UOB more than DBS. OCBC is estimated to gain approximately S$6 million for every 1 basis point movement in the rates of four major currencies. While OCBC and UOB are expected to see rising profit after tax and minority interest (PATMI) through FY2028, DBS may see mixed results depending on the movement of the Singapore dollar versus the US dollar.