We believe there is upside in OCBC's dividends (of 60 cents) from the excess capital of 1% or ~S$2.7bn of CET1.
Background
OCBC (SGX:O39) is the longest-established Singapore bank, formed in 1932 from the merger of three local banks, the oldest of which was founded in 1912. It is now the second-largest financial services group in Southeast Asia by assets. OCBC’s services include commercial banking and specialist financial and wealth management services, spanning consumer, corporate, investment, private, and transaction banking, as well as treasury, insurance, asset management, and stockbroking.
- Read this at SGinvestors.io -
Investment Merits/Outlook
Surge in WM fees keeps earnings stable:
- Read this at SGinvestors.io -
WM AUM was 18% higher y-o-y at S$336bn, driven by net new inflows of S$12bn for the quarter, of which more than 60% were placed into investments. As a result, total fee income rose 34% y-o-y, driving stable earnings.
Continued NIM compression hits NII:
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/.
