- OCBC's 9M24 results were in line on expectations that 4Q24 will be a softer quarter. Asset quality and capital remain solid but investors may be somewhat disappointed on the lack of clarity, for now, regarding management’s plans for excess capital.
- - Read this at SGinvestors.io -
Good set of 3Q24 results
- OCBC reported good set of 3Q24 results, with net profit of S$2bn (+2% q-o-q, +9% y-o-y) bringing 9M24 PATMI to S$5.9bn (+9% y-o-y) – at 78-79% of our and Street FY24 estimates.
- - Read this at SGinvestors.io -
- 9M24 reported ROE was 14.4% (FY23: 13.7%), while fully phased-in CET-1 ratio based on Basel III reforms remained solid at 15.6% (2Q24: 15.5%; 4Q23: 15.9%).
Results highlights.
- Non-II (+14% q-o-q, +41% y-o-y) drove income this quarter. Fees (+9% q-o-q, +10% y-o-y) were underpinned by wealth management (+16% q-o-q, +25% y-o-y) while trading income jumped 43% q-o-q (+135% y-o-y) as non-customer flows more than doubled q-o-q, further supported by higher customer flow income.
- Otherwise, NII was flattish as asset growth helped compensate for NIM pressure (-2bps q-o-q, -9bps y-o-y) as OCBC moved liquidity into high quality but lower yielding assets, and higher funding cost.
- Both loans and deposits were flat q-o-q. Opex growth outpaced income growth during the quarter due to the increase in business activities but 9M CIR of 38% was stable y-o-y.
- Credit cost ticked up to 22bps from 15bps in 2Q24 due to allowances for non-impaired assets and with non-performing assets (NPAs) improving, allowance coverage was beefed up further to 148% vs 2Q24: 138%.
Guidance & outlook.
- Read more at SGinvestors.io.
Singapore Research RHB Securities Research | https://www.rhbgroup.com/ 2024-11-11
Previous report by RHB:
2024-10-21 OCBC - Watching Out For Clues On 2025 Outlook.
Price targets by 3 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
