To The Moon

🏦💰 Why I Continue Holding OCBC Bank — Let My Money Earn Interest! 🇸🇬

🐶💵 As an investor in Singapore, I like OCBC because banks earn money by accepting deposits and lending to individuals and businesses. The difference between the interest they earn on loans and the interest they pay on deposits is a key source of income.

📈 1️⃣ Why am I making this investment now?

I see Singapore banks such as OCBC, DBS and UOB as potential long-term investments because they have established businesses, generate income from multiple sources and may reward shareholders through dividends.

💰 When interest rates are favourable, banks may earn wider net interest margins. However, when rates fall, lending margins can narrow. Banks also earn fees from wealth management, insurance, credit cards and other financial services.

🎯 My approach is to collect dividends while monitoring the share price. My screenshot shows an indicated long-position profit of S$1,529.70, but this is not necessarily realised profit or dividend income.

🐶 2️⃣ What’s my plan from here?

I will watch OCBC’s net interest margin, loan growth, bad-debt provisions, dividend sustainability and valuation. If the share price corrects to a level I consider attractive, I may consider adding shares. If earnings weaken or the valuation becomes excessive, I will reassess my position.

⚠️ Banks are not risk-free. Falling rates, economic weakness and rising loan defaults can affect earnings and dividends.

💡 My Options Puppy philosophy: I want my investments to work for me through potential dividends and long-term capital appreciation, rather than relying entirely on daily trading profits.

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