- 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.
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/ 2024-02-29
Read also UOB's most recent report:
2024-11-11 OCBC - The Tide On Capital Management Has Turned.
Previous report by UOB:
2024-08-05 OCBC's 2Q24 - Steady Execution, Pristine Asset Quality.
Price targets by 4 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
