OCBC Bank - 4Q22 To Be A Stable Quarter; Stay BUY

OCBC Bank - RHB Invest 2023-01-20: 4Q22 To Be A Stable Quarter; Stay BUY

OCBC Bank - 4Q22 To Be A Stable Quarter; Stay BUY

SGinvestors.io

Published: 2023-01-24 03:17 PM

OVERSEA-CHINESE BANKING CORP (SGX:O39) GREAT EASTERN HLDGS LTD (SGX:G07)

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We expect the OCBC to report a net profit of S$1.55bn for 4Q22, down an estimated 3.5% q-o-q due mainly to weaker non-II. Key positives would be the continued NIM expansion and benign credit cost on solid asset quality.

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NII and NIM to still show improvement.

OCBC's net-Interest-Income (NII), which increased a sharp 23% q-o-q in 3Q22, is expected rise further in 4Q22. Underpinning the NII improvement would be net-interest-margin (NIM) expansion. Although unlikely to match the 35bps q-o-q expansion to 2.06% in 3Q22, we believe OCBC's NIM would still edge up 9bps q-o-q to 2.15% in 4Q22 even as loans are being repriced to reflect the uptrend in interest rates. In 4Q22, Singapore’s short term rates are up 100-120bps q-o-q.

Within striking distance of loan growth guidance.

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Above is an excerpt from a report by RHB Securities Research.
Clients of RHB may be the first to access the full PDF report @ https://www.rhbtradesmart.com/.

SGinvestors.io

Singapore Research RHB Securities Research | https://www.rhbgroup.com/ 2023-01-20

Read also RHB's most recent report:
2025-02-27 OCBC - Returning More To Shareholders, Upgrade to BUY.

Previous report by RHB:
2025-01-23 OCBC - 4Q Earnings Could Drop Double Digits; All Eyes On Dividend & Capital Management Plans.

Price targets by 2 other brokers at OCBC Target Prices.

Listing of research reports at OCBC Analyst Reports.

Relevant links:
OCBC Share Price History,
OCBC Announcements,
OCBC Dividend Payout Dates & Corporate Actions,
OCBC News