OCBC (SGX:O39) reported net profit of S$1,687m for 4Q24 (up 4% y-o-y but down 15% q-o-q), slightly below our forecast of S$1,748m.
Mild NIM compression.
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Net interest income was quite flat on a y-o-y basis.
Sequential growth in fees despite seasonal weakness.
Fees grew 12% y-o-y and 2% q-o-q in 4Q24.
Contribution from wealth management increased 26% y-o-y. OCBC saw increased customer activities across all wealth product channels due to improved sentiment and higher AUM. Its AUM has expanded 14% to S$299b.
Contributions from life and general insurance were lacklustre at S$101m due to provisions for changes to Singapore’s MediShield Life scheme and caps for premium increases in Malaysia.
Contribution from treasury activities normalises.
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Higher staff costs due to bonus accruals and acquisition.
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Above is an excerpt from a report by UOB Kay Hian Research. Clients of UOB Kay Hian may be the first to access the full PDF report @ https://www.utrade.com.sg/.
