- 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 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:
2024-05-13 OCBC Bank - Third Time's A Charm?.
Previous report by DBS:
2024-02-29 OCBC - 4Q23 Revenue & Net Profit Below Consensus; Higher FY23 Dividend In Line.
Price targets by 4 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
