- 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?
- Read more at SGinvestors.io.
Singapore Research RHB Securities Research | https://www.rhbgroup.com/ 2024-10-21
Read also RHB's most recent report:
2024-11-11 OCBC Bank - More Patience Needed On Capital Management Plans.
Price targets by 4 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
