The "OCBC Capital Trapped" Hook
OCBC (O39) at near record highs: Massive margin of safety, or structural drag on ROE?
Body: Everyone loves OCBC for its bulletproof balance sheet and fortress-like CET1 ratio, but there's an uncomfortable valuation question brewing as the stock edges toward its 52-week highs. Having that much excess capital is great for safety, but it acts as a massive anchor on ROE if management can't find a way to deploy it aggressively via higher payouts or major M&A. I just did a reverse P/B and DCF analysis on OCBC's latest numbers to see exactly what the market is pricing in. If net interest margins (NIM) soften through the rest of 2026, the hurdle to justify this current valuation becomes surprisingly steep. Is the market being way too optimistic about their ability to unlock this "trapped" capital?
Link: Read the full deep-dive and valuation model here: www.stockbutts.com/o39-ocbc-may-2026/
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