- OCBC (SGX:O39) is our preferred pick among the 3 Singapore banks due to attractive valuations and dividend yield of 6.6%, buffered by a well-capitalised 14.8% CET 1, and fee income recovery from China’s re-opening.
- - Read this at SGinvestors.io -
- Maintain BUY with an unchanged target price of S$14.96. Our FY23e estimates remain unchanged. We assume 1.29x FY22e P/BV and ROE estimate of 10.8% in our GGM valuation.
- In FY24, we anticipate OCBC's net interest income growth driven by stable net interest margin and rising loans amid stabilised rates, with fee income recovery boosting earnings.
The Positives
Net interest income grew 17% y-o-y.
- - Read this at SGinvestors.io -
- Nonetheless, OCBC has increased its NIM guidance for FY23e from above 2.20% to around 2.25%.
Fee income grew to highest level in 4 quarters.
- Read more at SGinvestors.io.
