- OCBC (SGX:O39)'s management intends to maintain dividend payout ratio at 50% starting 2023, which provides more certainty of a recurrent and stable payout. Management is comfortable with a lower CET-1 CAR of 14.0% and will consider all options for capital management, including special dividends.
- - Read this at SGinvestors.io -
OCBC's guidance for 2023.
- Management guided for low-to mid-single-digit loan growth for 2023. OCBC sees strong momentum from sustainable finance and is close to reaching its target of S$50b by 2025.
- - Read this at SGinvestors.io -
- OCBC's management targets to achieve return on equity (ROE) of above 12%.
Conservative guidance for NIM.
- Management currently guides for full-year net-interest margin (NIM) to be 2.2% for 2023. Exit NIM was 2.31% in Mar 23. We expect OCBC's NIM to be maintained at 2.2% in 2024 despite repricing of fixed deposits higher as Fed Funds Rate is expected to peak at 5.50% (previous: 5.00%) after another two rate hikes of 25bp each.
Stable contributions from insurance business.
- Read more at SGinvestors.io.
