0141 GMT - Oversea-Chinese Banking Corp.'s pivot on capital returns provides flexibility this year, says Macquarie Capital's Jayden Vantarakis in a note. The Singapore lender delivered the best 4Q result among its peers, led by solid revenue generation, he says. OCBC said it now prefers special dividends to buybacks for distributing excess capital. Vantarakis says this sets the bank up for another year of around 60% dividend payout ratio, higher than the lender's guidance, given uncertainty around buyback deployment. The lender's common equity tier 1 target also opens up potential for further capital returns from 2027, he adds. Macquarie Capital raises its target price on the stock to S$23.82 from S$21.50 and maintains its outperform rating, noting OCBC is its top sector pick. Shares rise 0.1% to S$21.42. (megan.cheah@wsj.com)

(END) Dow Jones Newswires

February 25, 2026 20:41 ET (01:41 GMT)

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