OCBC Bank - DBS Research 2024-05-13: Third Time's A Charm?

OCBC Bank - Third Time's A Charm?

OCBC (SGX:O39) | SGinvestors.ioOCBC (SGX:O39)
  • OCBC (SGX:O39) reported 1Q24 revenue of S$3,626mil (+8% y-o-y, +11% q-o-q), with net profit of S$1,982mil (+5% y-o-y, +22% q-o-q) reaching a new quarterly high.

1Q24 revenue and net profit above consensus.

  • - Read this at SGinvestors.io -
  • OCBC's capital ratios remained strong, with CET1 at 16.2% (4Q23: 15.9%) largely from profit accretion, and total CAR is 18.4% (4Q23: 18.1%).
  • 1Q24 net interest income (NII) of S$2,437mil rose 4% y-o-y, declined 1% q-o-q, as loan growth of +2% y-o-y, +1% q-o-q partially offset the impact from shorter days in 1Q24 on top of the 2bps q-o-q decline in the net interest margin (NIM) as funding costs continued to rise q-o-q.

Higher non-interest income supported by growth across fee, trading, and insurance income.

  • - Read this at SGinvestors.io -
  • Meanwhile, profit from Great Eastern (SGX:G07) was significantly higher at S$289mil (+21% y-o-y, +328% q-o-q) – this was the main driver for non-interest income this quarter, supported by better investment performance and an improved claims experience. Great Eastern’s total weighted new sales improved +34% y-o-y, +2% q-o-q.

1Q24 saw lower credit costs of 16bps (4Q23: 21bps), as writeback in general allowances offset higher specific 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 | Singapore Research Team DBS Research | https://www.dbs.com/insightsdirect/ 2024-05-13

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

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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