- OCBC (SGX:O39)’s 3Q22 net profit of S$1.6bn (8% q-o-q, +31% y-o-y) was in line with our estimate but 8% above consensus forecasts.
- The global macroeconomic outlook continues to be uncertain but OCBC remains positive on growth in Asia. The bank’s outlook is underpinned by Singapore employment rates staying robust, benefitting from the re-opening of regional economies as Malaysia and Indonesia are on a path of steady recovery. That said, with greater risk of a recession as the Fed hikes rates, OCBC is watchful on near-term vulnerability.
- - Read this at SGinvestors.io -
- - Read this at SGinvestors.io -
- OCBC (SGX:O39)’s 3Q22 net profit of S$1.6bn (8% q-o-q, +31% y-o-y) was in line with our estimate but 8% above consensus forecasts.
- The global macroeconomic outlook continues to be uncertain but OCBC remains positive on growth in Asia. The bank’s outlook is underpinned by Singapore employment rates staying robust, benefitting from the re-opening of regional economies as Malaysia and Indonesia are on a path of steady recovery. That said, with greater risk of a recession as the Fed hikes rates, OCBC is watchful on near-term vulnerability.
- The continued strength in OCBC’s NIM expansion in 3Q22 (+35bp q-o-q to 2.06%) was a surprise, the strongest margin expansion amongst peers for 2 quarters now. We understand that this was in part due to OCBC’s repositioning (over the past couple of years) to focus on investing in digitalisation to drive cash management initiatives aimed at SMEs, corporates and SOEs to build up its CASA franchise. Further, 90% of its loan book is on floating rate.
- OCBC guides for
- Read more at SGinvestors.io.
Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
Andrea CHOONG CGS-CIMB Research | LIM Siew Khee CGS-CIMB Research | https://www.cgs-cimb.com 2022-11-05
Read also CGS-CIMB's most recent report:
2023-11-16 OCBC - Deepening Its Indonesian Presence.Previous report by CGS-CIMB:
2023-11-10 OCBC - CET1 Upside Gives Hope Of Higher Dividends.Price targets by 6 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
OCBC Bank - A Relatively Conservative View On Margins
OVERSEA-CHINESE BANKING CORP (SGX:O39)
