OCBC - DBS Research 2024-02-29: 4Q23 Revenue & Net Profit Below Consensus; Higher FY23 Dividend In Line

OCBC - 4Q23 Revenue & Net Profit Below Consensus; Higher FY23 Dividend In Line

OCBC (SGX:O39) | SGinvestors.ioOCBC (SGX:O39)
  • OCBC (SGX:O39) reported 4Q23 revenue of S$3.3bn (+9% y-o-y/-5% q-o-q) with net profit of S$1.6bn (+12% y-o-y/-10% q-o-q), which are below consensus expectations.
  • Operating costs grew 1% y-o-y/declined 2% q-o-q as a result, and cost-to-income ratio (CIR) rose to 40.0% for 4Q23 (3Q23: 39.1%). Capital ratios remained strong, with CET1 and total CAR at 15.9% (3Q23: 15.3%) and 18.1% (3Q23: 16.9%), respectively.
  • - Read this at SGinvestors.io -

Higher non-interest income supported by increased trading and investment income.

  • Non-interest income of S$811m improved 32% y-o-y/declined 17% q-o-q, driven by lower insurance income and net gains from the sale of investment securities.
  • Net fees and commissions of S$460m (+16% y-o-y/flat q-o-q) were resilient despite the typical seasonality effect in 4Q23, driven by stronger wealth fees, loans, trade, guarantees, remittances, and other fees.
  • - Read this at SGinvestors.io -

4Q23 saw higher credit costs of 20bps (3Q23: 17bps) due to higher general allowances.

  • 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 | Jia Hui NG DBS Research | https://www.dbs.com/insightsdirect/ 2024-02-29

Previous report by DBS:
2023-11-10 OCBC - NIM Peaked During 3Q23; Asset Quality Continues To Hold Up.

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


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