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 an excerpt from a report by UOB Kay Hian Research. Clients of UOB Kay Hian may be the first to access the full PDF report @ https://www.utrade.com.sg/.
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 reward 🎟 !
