- OCBC delivered a net profit of S$1,974m in 3Q24 (+9% y-o-y), supported by a surge in wealth management fees, doubling of trading income and steady growth from insurance.
- Management will review OCBC's capital position at end-24. It prefers to return surplus capital to shareholders through paying more regular dividends but does not advocate buying back shares.
Gradual NIM compression.
- - Read this at SGinvestors.io -
- NIM eased 9bp y-o-y and 2bp q-o-q to 2.18% in 3Q24 due to liquidity deployed in lower-yielding high-quality bank placements and debt securities and higher funding cost. Loans expanded 4% y-o-y and 2% q-o-q on a constant currency basis driven by Singapore, Malaysia, Australia and the UK.
- - Read this at SGinvestors.io -
Upbeat sentiment drove activities from high net worth clients.
- Fees grew 10% y-o-y and 9% q-o-q in 3Q24. Contribution from wealth management jumped 25% y-o-y and 16% q-o-q. OCBC saw an increase in customer activities across all wealth products channels, including structured deposits, bancassurance, unit trusts and private banking. It attracted net new money of S$5b and AUM expanded 5% y-o-y to S$284b in 3Q24.
Surge in trading income.
- Read more at SGinvestors.io.
Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @ https://www.utrade.com.sg/.
Jonathan KOH CFA UOB Kay Hian Research | https://research.uobkayhian.com/ 2024-11-11
Previous report by UOB:
2024-08-05 OCBC's 2Q24 - Steady Execution, Pristine Asset Quality.
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
