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

• 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 an excerpt from a report by DBS Group Research.
Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.

Read also DBS's most recent report:
2026-02-26 OCBC - A Robust Capital Plan In The Works?.

Previous report by DBS:
2026-01-30 OCBC - A Robust Capital Plan In The Works? .

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