- Attractive dividend yields to support share prices till ex-dividend dates; higher payouts are positive catalysts. We prefer OCBC to UOB for better asset quality and higher provision coverage ratio.
4Q23 NIM to see q-o-q declines across most banks; earlier than expected rate cuts may pressure FY24F NIMs.
- - Read this at SGinvestors.io -
- - Read this at SGinvestors.io -
- Recall that OCBC recognized a one-off increase in wholesale funding costs in 3Q23, hence 4Q23 cost of funds may improve marginally q-o-q.
- Our DBS economists currently expect 100bps rate cuts in 2H24F. As markets continue to price in an earlier cut, should rate cuts come earlier than expected, we believe there is further pressures on FY24F NIM.
Loan growth may be weaker than anticipated even as rate cuts materialise.
- Read more at SGinvestors.io.
