OCBC - DBS Research 2022-08-04: Positive NIM Surprise

OCBC - Positive NIM Surprise

Published:
OVERSEA-CHINESE BANKING CORP (SGX:O39) | SGinvestors.ioOVERSEA-CHINESE BANKING CORP (SGX:O39)
  • OCBC (SGX:O39) reported 2Q22 revenues of S$2.9bn (+12% y-o-y/+9% q-o-q) with a net profit of S$1.5bn (+28% y-o-y/+9% q-o-q higher), exceeding expectations.
    • Stronger-than-expected net interest income on firm expansion of net interest margin (NIM). Net interest income increased 16% y-o-y/13% q-o-q to a new high of S$1.7bn on asset growth and NIM expansion.
    • - Read this at SGinvestors.io -
    • Improvement in credit costs due to better credit conditions; lower new NPA formation. 2Q22 credit costs were mainly general allowances for model updates, partly offset by write-back from credit upgrades. Total allowances: S$72m, 8bps (1Q22: S$44m, 6bps) comprise higher general allowances and lower specific allowances. The new NPA formation of S$182m (1Q22: S$296m) was offset by higher recoveries. The NPL ratio declined to 1.3% (1Q22: 1.4%) and allowance coverage increased to 99% (1Q22: 91%) on a decrease in NPAs.
  • - Read this at SGinvestors.io -
  • Takeaways from analyst briefing by OCBC:
    • Read more at SGinvestors.io.




    Above is the excerpt from report by DBS Group Research.
    Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.




    Rui Wen LIM DBS Group Research | Tabitha FOO DBS Research | https://www.dbs.com/insightsdirect/ 2022-08-04



    Read also DBS's most recent report:
    2023-11-10 OCBC - NIM Peaked During 3Q23; Asset Quality Continues To Hold Up.

    Previous report by DBS:
    2023-08-07 OCBC - Funding Costs Weighs On.

    Price targets by other brokers at OCBC Target Prices.

    Listing of research reports at OCBC Analyst Reports.

    Relevant links:
    OCBC Share Price History,
    OCBC Announcements,
    OCBC Dividends & Corporate Actions,
    OCBC News Articles





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