OCBC - DBS Research 2023-02-27: Sustained Dividend Improvement Ahead

OCBC - Sustained Dividend Improvement Ahead

  • OCBC (SGX:O39)'s 4Q22 results missed estimates. OCBC reported 4Q22 revenue of S$3.0bn (+18% y-o-y/-5% q-o-q) with net profit of S$1.3bn (+34% y-o-y/-19% q-o-q), below consensus expectations, as Great Eastern (SGX:G07) dragged non-interest income due to lower profit from insurance, and there were higher q-o-q credit costs due to higher general allowances.
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  • Capital ratios remained strong with the CET1 and total CAR at 15.2% and 17.7%, respectively, the highest among peers.

Record net interest income on the back of higher margins.

  • OCBC's 4Q22 net interest income of S$2.4bn increased 60% y-o-y and 14% q-o-q as a result of an impressive 79bps/25bps NIM expansion y-o-y/q-o-q, respectively.
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Non-interest income dragged by lower profit from insurance.

  • 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 | https://www.dbs.com/insightsdirect/ 2023-02-27

Previous report by DBS:
2022-11-04 OCBC - Record Net Profit On Strong NIM.

Price targets by 5 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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