Singapore Banks - RHB Invest 2023-11-21: Hold For Dividends; No Major Surprises In 3Q23

• Singapore banks DBS, OCBC & UOB’s 3Q23 results were within expectations. OCBC has the strongest asset quality metrics – a potential differentiating factor in a higher-for-longer interest rate environment. Yet, OCBC's share price trades at 1x P/BV while offering 6% yield.
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Guidance largely unchanged.

• FY23F guidance from SG Banks were fine-tuned after the release of 9-month results. OCBC tweaked up its net-interest margin (NIM) guidance and lowered its cost-income ratio (CIR) target, while reducing loan growth expectations. Overall, the impact is largely neutral to bottomline.

3Q23 sector’s operating income was flat q-o-q

• - Read this at SGinvestors.io -
• 9M23 earnings jumped 31% y-o-y on stronger operating income (NIM: +47bps y-o-y; Non-II: +17% y-o-y on other Non-II) and positive jaws as CIR improved to 40.4% from 43.9% in 9M22.
• See also reports:
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  Singapore Research RHB Securities Research | https://www.rhbgroup.com/ 2023-11-21 SGinvestors.io
  
  

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  More reports on banking & finance sector:
  Analyst Reports on Singapore Banking & Finance Sector

  Read also:
  Analyst Reports on DBS Group
  Analyst Reports on OCBC Bank
  Analyst Reports on United Overseas Bank (UOB)