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.
Above is an excerpt from a report by RHB Securities Research. Clients of RHB may be the first to access the full PDF report @ https://www.rhbtradesmart.com/.
Use Trust referral code PGKPSWAE to sign up NTUC Link or Trust Link Credit Card or open a Trust Bank Savings Account: ✨Earn up to S$1,000 cashback rewards 🎟!
