OCBC - DBS Research 2023-08-07: Funding Costs Weighs On

OCBC - Funding Costs Weighs On

OCBC (SGX:O39) | SGinvestors.ioOCBC (SGX:O39)
  • OCBC (SGX:O39)'s 2Q23 net profit in line with expectations as higher revenues also saw higher operating expenses and provisions -
    • OCBC reported 2Q23 revenue of S$3.5bn (+30% y-o-y/+12% q-o-q), ahead of estimates, while the net profit of S$1.7bn (+33% y-o-y/-9% q-o-q) was in line with estimates.
    • - Read this at SGinvestors.io -
    • Capital ratios remained strong, with CET1 and total CAR at 15.4% (1Q23: 15.9%) and 17.8% (1Q23: 18.4%), respectively, the highest among peers.
    • The payment of the 1H23 interim dividend of 40 cents on 25 August 2023 will reduce the CET1 CAR to 14.6%, which is still above the medium-term target of 14.0%. See OCBC's dividend dates.

Net interest income growth partially mitigated by NIM decline.

  • - Read this at SGinvestors.io -
  • Meanwhile, loan growth was at 1% q-o-q, largely driven by housing and corporate loans in Singapore.

Mixed non-interest income performance.

  • 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 | Tabitha FOO DBS Research | https://www.dbs.com/insightsdirect/ 2023-08-07

Read also DBS's most recent report:
2024-02-29 OCBC - 4Q23 Revenue & Net Profit Below Consensus; Higher FY23 Dividend In Line.

Previous report by DBS:
2023-11-10 OCBC - NIM Peaked During 3Q23; Asset Quality Continues To Hold Up.

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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