OCBC Bank - RHB Invest 2023-11-14: Steady As It Goes

OCBC Bank - Steady As It Goes

OCBC (SGX:O39) | SGinvestors.ioOCBC (SGX:O39)
  • OCBC Bank (SGX:O39)’s 9M23 earnings are in line. Despite the improvement in NPL, it raised loan coverage levels further, and this should keep the group in good stead. Management also fine-tuned its 2023 guidance (overall ROE expectation unchanged), while more details on the 2024 outlook will be shared later.
  • - Read this at SGinvestors.io -

3Q23 results met expectations

  • OCBC's 3Q23 results met expectations, with net profit of S$1.8bn (+6% q-o-q; +21% y-o-y) bringing 9M23 net profit to S$5.4bn (+32% y-o-y), at 76% of our and Street FY23F earnings.
  • - Read this at SGinvestors.io -
  • Q-o-q, the rise in net profit was due to lower loan provisions (-24% q-o-q, +17% y-o-y), on writebacks in general allowances (GP) of S$36m (2Q23: S$200m charge). PIOP, though, dropped by 2% q-o-q on weaker insurance and other non-II, cushioned by a 3% q-o-q rise in NII on a 1bp NIM uptick and higher fees (+7% q-o-q from wealth, cards and trade).
  • Opex was stable, but CIR rose 60bps q-o-q to 39.1%, due to Non-II softness.

Loan book was flat q-o-q

  • Read more at SGinvestors.io.

Singapore Research RHB Securities Research | https://www.rhbgroup.com/ 2023-11-14

Read also RHB's most recent report:
2024-04-16 OCBC Bank - Where Could 1Q24 Results Surprises Come From.

Previous report by RHB:
2024-03-22 OCBC's ESG - Bar For Improvement Is Low.

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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