OCBC won't focus on Singapore anymore

RELATED QUOTES

SymbolPriceChange
O39.SI9.68+0.060

All eyes on Malaysia and Indonesia now.

According to Nomura, 9M12 core net profit rose 28% y-y to SGD2.16bn, accounting for 85% of our FY12F estimate of SGD2.45bn and 82% of the Street’s full-year estimate of SGD2.58bn. The outperformance was mainly due to lowerthan-expected credit costs and stronger trading & insurance income.

Here's more from Nomura:

What do the results mean?
Like its peers DBS and UOB, OCBC recorded a slowdown in annual loan growth to ~8% (+1%q-q), lower-than-expected credit costs and higher markets-related income.

Any change to guidance?
Management is guiding for FY12-13 loan growth to be in the mid-to-high single-digit range given the limited visibility on the global economic recovery. Loan growth has been encouraging in Malaysia (mortgages, corporate) and Indonesia (SMEs, corporate) and management will continue to devote resources to those markets.

NIM downside is limited from current level of ~1.75%. Management believes that the NIM pressure in Singapore will be offset by the faster growth in higher NIM markets like Malaysia and Indonesia.

On capital, management indicated that the capital generated by the divestment of its shares in F&N and APB will be kept for organic growth prospects.  



More From Singapore Business Review
 
Recent Quotes
Symbol Price Change % Chg 
Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
You need to enable your browser cookies to view your most recent quotes.
 
Sign-in to view quotes in your portfolios.

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    1.2561+0.0006+0.05%
    USDSGD=X
    1.7364+0.0017+0.10%
    EURSGD=X
    2.1084+0.0018+0.09%
    GBPSGD=X
    81.4707-0.2032-0.25%
    SGDJPY=X
    6.1727-0.0029-0.05%
    SGDHKD=X
    2.5983-0.0029-0.11%
    SGDMYR=X
    9,259.2979-40.3867-0.43%
    SGDIDR=X
    4.9665-0.0022-0.04%
    SGDCNY=X
    1.1668+0.0009+0.08%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,286.90+2.30+0.18%
    GCM14.CMX
    19.47+0.03+0.14%
    SIK14.CMX
    92.88+1.82+2.00%
    ^XAU
    3.07+0.01+0.25%
    HGK14.CMX
    101.67+0.23+0.23%
    CLM14.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.71-0.03
    ^FVX
    2.69-0.04
    ^TNX
    3.47-0.03
    ^TYX

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.152+0.010+7.04%
    545.SI
    0.121-0.001-0.82%
    B22.SI
    0.152+0.008+5.56%
    C68.SI
    0.635+0.040+6.72%
    5WH.SI
    1.350.0000.00%
    G13.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    18.50+2.700+17.09%
    K6S.SI
    0.255+0.015+6.25%
    5KI.SI
    1.305+0.090+7.41%
    5DA.SI
    0.17+0.012+7.59%
    5PF.SI
    0.15+0.010+7.14%
    5GD.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.053-0.059-52.68%
    5TF.SI
    1.61-0.530-24.77%
    N02.SI
    0.123-0.008-6.11%
    S71.SI
    1.32-0.050-3.65%
    S35.SI
    0.17-0.001-0.58%
    588.SI