OCBC Bank - UOB Kay Hian 2023-11-14: 3Q23 Delivering Consistency In Execution & Resilient Earnings

OCBC Bank - 3Q23 Delivering Consistency In Execution & Resilient Earnings

OCBC (SGX:O39) | SGinvestors.ioOCBC (SGX:O39)
  • OCBC delivered earnings growth of 21% y-o-y in 3Q23, powered by NIM expansion of 21bp y-o-y and growth in net interest income of 17% y-o-y. Loan-loss coverage improved 8ppt q-o-q to 139% after setting aside specific provisions of S$220m despite NPL declining 5.5% q-o-q. CET-1 CAR remains robust at 14.8%.
  • - Read this at SGinvestors.io -

OCBC 3Q23 results highlights

  • OCBC Bank (SGX:O39) reported net profit of S$1,810m for 3Q23 (up 21% y-o-y and up 6% q-o-q), above our forecast of S$1,726m.

Net interest income hit record high as NIM remains resilient.

  • NIM expanded 21bp y-o-y and 1bp q-o-q to 2.27% in 3Q23, driven by rising interest rates. Loans contracted 2% y-o-y but were flat q-o-q (constant currency: +1% y-o-y and +1% q-o-q).
  • - Read this at SGinvestors.io -
  • Net interest income grew 17% y-o-y to a record high of S$2,456m.

Fee income grew 2% y-o-y and 7% q-o-q in 3Q23.

  • Contribution from wealth management increased 9% y-o-y and 8% q-o-q due to increased customer activities. Assets under management (AUM) grew 8% y-o-y to S$270b with positive inflow of net new money.
  • OCBC also benefitted from higher credit card fees due to higher customer spend accompanied by the recovery in leisure and business travel.

Growth in other non-interest income.

  • Read more at SGinvestors.io.

Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @ https://www.utrade.com.sg/.

Jonathan KOH CFA UOB Kay Hian Research | https://research.uobkayhian.com/ 2023-11-14

Previous report by UOB:
2023-08-07 OCBC 2Q23 - Delivers Resilient Earnings & Promised Dividend Payout.

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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