OCBC (SGX:O39) unveiled a 2-year S$2.5bn capital return plan via special dividends and share buybacks. This is a much welcome addition to our investment thesis for the stock – a good defensive option given solid asset quality and capital levels, and connectivity play, where it is well poised to benefit from supply chain shifts.
OCBC's 4Q24 results in line.
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FY24 reported ROE stood at 13.7%, slightly below the >14% target but flat y-o-y.
The fully phased-in CET-1 ratio under Basel III reforms was at 15.3% (3Q24: 15.6%).
A final dividend of S$0.41 together with a special dividend of S$0.16 were declared (4Q23: S$0.42) – ahead of our S$0.43 expectations. This brought total dividend to S$1.01 (2023: S$0.82) and translates to a payout of 60% (FY23: 53%). See OCBC's dividend payout dates.
Results highlights.
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Key highlights include:
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Above is an excerpt from a report by RHB Securities Research. Clients of RHB may be the first to access the full PDF report @ https://www.rhbtradesmart.com/.
