OCBC - RHB Invest 2024-10-21: Watching Out For Clues On 2025 Outlook

• We recently met OCBC (SGX:O39) for an update. We expect OCBC's 3Q24 PBT to ease by low-to mid-single digit sequentially on softer operating income but y-o-y, we estimate a low-to mid-single digit growth thanks to non-II.
• - Read this at SGinvestors.io -

NIM compression to dampen NII

• We gather that the 3Q trends for NII drivers should remain consistent with 1H and/or guidance. Recall that OCBC's 1H24 loan growth was 2% y-o-y while NIM of 2.23% was slightly ahead of the guided “low-end” of 2.20-2.25% range. Trade and currency remain headwinds to loan growth but mortgage growth has been stable.
• - Read this at SGinvestors.io -
• On NIM, we expect further NIM compression due to ongoing efforts to protect NII. Recall that in the 2Q24 results briefing, OCBC guided for rates sensitivity of S$4m impact/bp change vs 1Q24: S$5-6m and S$6-7m in 4Q23.

Non-II – Can all cylinders keep firing?

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Singapore Research RHB Securities Research | https://www.rhbgroup.com/ 2024-10-21 SGinvestors.io

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