- OCBC (SGX:O39) delivered a near-record net profit of S$1,944m in 2Q24 (up 14% y-o-y but down 2% q-o-q), above our forecast of S$1,644m, supported by strong net trading income and lower credit costs.
Purchased government bonds to insulate against rate cuts.
- - Read this at SGinvestors.io -
- OCBC has shifted its asset mix to prepare for an environment of lower interest rates. Net interest income grew 1.7% y-o-y and was flat q-o-q.
Fees grew 8% y-o-y but receded 3% q-o-q in 2Q24.
- OCBC benefits from FDI inflows to ASEAN as multinational companies seek to diversify their supply chains. It saw an increase in customer activities across all wealth channels.
- - Read this at SGinvestors.io -
- Contribution from wealth management increased 17% y-o-y but eased 7% q-o-q.
Contributions from insurance normalised.
- Read more at SGinvestors.io.
