- OCBC's 3Q24 earnings of S$1.97bn were above our estimates owing to a surge in trading income and higher fees and commission income. 9M24 PATMI was 81% of our FY24e forecast.
- NII grew 2% y-o-y from loan growth of 2% y-o-y offset by NIM dipping 6bps y-o-y to 2.20%. Total non-interest income rose 13% y-o-y, led by broad-based growth from fee, trading, and insurance income. Allowances dipped 43% due to lower GPs as credit costs improved to 15bps.
- - Read this at SGinvestors.io -
The Positives
Trading drives non-interest income.
- OCBC's trading income hit a new quarterly high of S$508mil (+135% y-o-y) from higher customer flow income and was the main driver for non-interest income growth (+41% y-o-y). This was also supported by fee income growth from higher WM, investment banking, and loan-related fees, while insurance growth was supported by robust underlying business performance.
- - Read this at SGinvestors.io -
Allowances down 8% y-o-y, credit costs at 22bps.
- Read more at SGinvestors.io.
Above is an excerpt from a report by Phillip Securities Research.
Clients of Phillip Capital may be the first to access the full PDF report @ https://www.stocksbnb.com/.
Glenn Thum Phillip Securities Research | http://www.poems.com.sg/ 2024-11-11
Read also Phillip's most recent report:
2026-05-11 Oversea-Chinese Banking Corp (OCBC) - Non-interest Income Growth Drives Strong Start To FY26.
Previous report by Phillip:
2026-02-27 OCBC - Wealth Momentum Anchors Earnings Resilience.
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 Dividend Payout Dates & Corporate Actions,
OCBC News
