- OCBC delivered earnings growth of 12% y-o-y in 4Q23 despite dismal contributions from its insurance business. Quality of its earnings is high as loan loss coverage improved further by 12ppt q-o-q to 151%, its 8th consecutive quarter of sequential improvement.
- - Read this at SGinvestors.io -
- OCBC provides attractive dividend yield of 6.5% for 2024. Maintain BUY. Target price: S$17.22.
OCBC's 4Q23 results
- Oversea-Chinese Banking Corp (OCBC, SGX:O39) reported net profit of S$1,622m for 4Q23 (up 12% y-o-y but down 10% q-o-q), which is in line with our forecast of S$1,647m.
NIM expanded 2bp q-o-q to 2.29% in 4Q23.
- - Read this at SGinvestors.io -
- On a constant currency basis, loans grew 2% y-o-y and 1% q-o-q driven mainly by Singapore. Sustainable financing loans increased 29% y-o-y and accounted for 13% of total loans.
- Net interest income expanded at a low single-digit pace of 3% y-o-y.
Fees grew at double-digit pace of 16% y-o-y but were flat q-o-q in 4Q23.
- Read more at SGinvestors.io.
