- OCBC (SGX:O39) reported 3Q23 revenue of S$3.4bn (+9% y-o-y/-1% q-o-q) with net profit of S$1.8bn (+21% y-o-y/+6% q-o-q), largely in line with the consensus. Higher net profit q-o-q was driven by lower allowances q-o-q, although non-fee income weighed on non-interest income during 3Q23.
- - Read this at SGinvestors.io -
- Capital ratios remained strong, with CET1 and total CAR at 15.3% (2Q23: 15.4%) and 16.9% (2Q23: 17.8%), respectively.
Net interest income improved on higher NIM.
- 3Q23 net interest income of S$2.5bn rose 17% y-o-y/3% q-o-q, as 3Q23 saw a 1bps improvement q-o-q in NIM to 2.27%.
- Meanwhile, loan growth was -2% y-o-y/flat q-o-q.
Higher non-interest income supported by fee income.
- - Read this at SGinvestors.io -
- Net fees and commissions rose 2% y-o-y/7% q-o-q to S$461m, driven by stronger wealth fee, loans, trade, guarantees, remittances, and other fees, although net new money declined this quarter.
- The trading income of S$216m (flat y-o-y/-31% q-o-q) declined due to a decline in non-customer trading income on the back of lower MTM valuation on FVTPL securities and derivatives, while profit from GEH, at S$220m (-12% y-o-y/-16% q-o-q), declined, as higher medical claims offset investment gains.
Lower credit costs in 3Q23
- Read more at SGinvestors.io.
Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.
Rui Wen LIM DBS Group Research | https://www.dbs.com/insightsdirect/ 2023-11-10
Read also DBS's most recent report:
2024-02-29 OCBC - 4Q23 Revenue & Net Profit Below Consensus; Higher FY23 Dividend In Line.
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
