OCBC - RHB Invest 2024-08-05: Protecting Net Interest Income As Rate Cuts Near

• OCBC (SGX:O39)’s 2Q24 results beat estimates, but the group retained its guidance as it looks ahead to the start of interest rate cuts and efforts to protect net-interest income (NII).
• We expect investors to look past the results beat. Solid asset quality and capital, coupled with 6% dividend yields should provide downside support, but a further outperformance of OCBC's share price is likely to be challenging in the absence of dividend growth and rising market expectations that interest rate cuts are nearing.

2Q24 results beat forecasts

• - Read this at SGinvestors.io -
• - Read this at SGinvestors.io -
• 1H24 reported ROE was 14.5% (FY23: 13.7%) but OCBC's CET-1 slipped 70bps q-o-q to 15.5% due to the payment of OCBC's dividend in 4Q23 and higher RWA (on loan growth plus higher market risk from hedges).

Results highlights.

• Read more at SGinvestors.io.

Singapore Research RHB Securities Research | https://www.rhbgroup.com/ 2024-08-05 SGinvestors.io

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