OCBC Bank (O39.SI) saw its stock plummet by 3.04% during intraday trading on Friday, as Singapore's stock market faced a broad selloff. The decline comes as the bank's private banking arm announced plans for significant expansion in the Greater China region, raising questions about the timing of such moves in the current economic climate.
The Straits Times Index (STI) fell by 1% in early trading, with other major banks also experiencing declines. DBS Group and UOB saw their shares drop by over 1%, indicating a sector-wide trend. The market downturn was partly attributed to concerns over new U.S. tariffs, which could potentially impact Singapore's export-dependent economy.
OCBC's private banking division, Bank of Singapore, revealed plans to add between 20 and 30 relationship managers to its Greater China team this year. This expansion is part of a broader strategy to increase client assets by 50% by the end of 2026. While the bank cited picking up financial activities in Hong Kong and growing interest from high-net-worth individuals in Singapore-based banks, investors appear to be approaching these growth plans with caution given the current economic uncertainties.
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