OCBC Bank Last:23.94

-0.06

OCBC

Ocbc down for 2 days. Very soon going back to $13.20

looking at its TA strength, may pull a surprise 15 in coming days ..... fingers crossed

Let GE remain. It is a good earnings subsidiary

Like mirroring UOB style.

Conservatism vs adaption to the changing business world.

Hope CEO rocks !

FATABA ( Date: 01-Apr-2024 09:57) Posted:

I guess even taking GE private wld Not satisty many SH .....unless,\ a great offer is given,
(which was why the previous offer failed)
GE minority SH are holding this counter a long ttime and its share price are not performing to expectation, However board and mgt are continued to be
rewarded?
in fact rewarded w OCBC shares ...why ? ( am I wrong here ? Pls correct me if so )

CEO Helen is aboard only one yr,,,,,see IF she darns to rock this boat....many OLD management are still resting inside this BIG Corp ...another is SICKtel.
so no major strategy w changing time and continue w day to day and rest for retirement, The world is changing...DBS Kep and SCI has all restructured,

Let see and I think public voices are growing louder....they either WAKE up OR get OUT

time will tell . Dyodd

seanpent ( Date: 01-Apr-2024 08:29) Posted:

assuming if either sale or privatisation of GEH, OCBC jiak buay liao hor

I guess even taking GE private wld Not satisty many SH .....unless,\ a great offer is given,
(which was why the previous offer failed)
GE minority SH are holding this counter a long ttime and its share price are not performing to expectation, However board and mgt are continued to be
rewarded?
in fact rewarded w OCBC shares ...why ? ( am I wrong here ? Pls correct me if so )

CEO Helen is aboard only one yr,,,,,see IF she darns to rock this boat....many OLD management are still resting inside this BIG Corp ...another is SICKtel.
so no major strategy w changing time and continue w day to day and rest for retirement, The world is changing...DBS Kep and SCI has all restructured,

Let see and I think public voices are growing louder....they either WAKE up OR get OUT

time will tell . Dyodd

seanpent ( Date: 01-Apr-2024 08:29) Posted:

assuming if either sale or privatisation of GEH, OCBC jiak buay liao hor ?

governor ( Date: 01-Apr-2024 08:19) Posted:

Fairness

Fairness to minority shareholders should be enshrined in every listed company. The c-suites and the board of directors of any mid to large listed company are very well paid, enjoying a life of abundance and positive social status. With great wealth comes greater moral responsibility&hellip continue

https://lonewolfinvestor.blogspot.com/2024/04/wolf-moneyportfolio-update-for-end.html

assuming if either sale or privatisation of GEH, OCBC jiak buay liao hor ?

governor ( Date: 01-Apr-2024 08:19) Posted:

Fairness

Fairness to minority shareholders should be enshrined in every listed company. The c-suites and the board of directors of any mid to large listed company are very well paid, enjoying a life of abundance and positive social status. With great wealth comes greater moral responsibility&hellip continue

https://lonewolfinvestor.blogspot.com/2024/04/wolf-moneyportfolio-update-for-end.html

To be fair to this stock, its stock price has creeped up from about 7 dollars to 14 in some 18 years after surviving the global financial crisis and Covid 19. Rock Solid company.

Fairness

Fairness to minority shareholders should be enshrined in every listed company. The c-suites and the board of directors of any mid to large listed company are very well paid, enjoying a life of abundance and positive social status. With great wealth comes greater moral responsibility&hellip continue

https://lonewolfinvestor.blogspot.com/2024/04/wolf-moneyportfolio-update-for-end.html

It has crept up to $13.80 in one month surging together with the other 2 local banks .

This thread deserves to be revived , since there is already much discussion on the other two .

Echoes ( Date: 28-Feb-2024 16:48) Posted:

I am quite confident that interim dividen for H1 2024 will see a minimum of 40cts and very likely another 42cts . So we are talking 84 cts dividens to be paid by Aug/Sept this year , or in the next 6 months .

If price stays at current $13 , we are talking $12.16 theoretical ex dividens pricing .

I doubt we will see $12.16 in Aug . It has to creep up at some point .

Behind the minority-investor movement at Great Eastern: BT Mark to Market (Ep 41)

https://omny.fm/shows/bt-mark-to-market/behind-the-minority-investor-movement-at-great-eas

Concern to OCBC shareholders also

Unchanged.

Suppose that' s positive for the banks ?

seanpent ( Date: 05-Mar-2024 09:33) Posted:

https://www.fxstreet.com/macroeconomics/central-banks/fed#:~:text=Jerome%20Powell%20speaks%20on%20policy%20outlook%20after%20deciding%20to%20keep%20interest%20rate%20unchanged& text=The%20US%20Federal%20Reserve%20(Fed,line%20with%20the%20market%20expectation.

what' s the impact on the various sector, either there will be rate cut or no rate cut ?

same set of results, more than 1 opinion ..... confusing indeed .....

Echoes ( Date: 01-Mar-2024 11:35) Posted:

Same set of results , 2 contrasting headlines . The first by Bloomberg , the second from The Smart Investor .
See which one you prefer .

OCBC shares dip as profit misses, dividend outlook disappoints

By Chanyaporn Chanjaroen

(Bloomberg) &mdash Oversea-Chinese Banking Corp.&rsquo s fourth-quarter profit missed estimates on lower income from insurance while analysts said the lender&rsquo s dividend outlook likely disappointed investors.

Net income rose 12% to S$1.62 billion ($1.2 billion) in the three months ended Dec. 31 from a year earlier, Southeast Asia&rsquo s second-largest lender said Wednesday. That missed the S$1.71 billion average estimate of four analysts surveyed by Bloomberg.

Shares of the lender fell as much as 3% in Singapore, the most in more than six months.

With full-year earnings hitting an all-time high of S$7 billion, OCBC raised its 2023 dividend by 21% and said it&rsquo ll maintain a 50% target for its dividend payout ratio. The guidance for this year&rsquo s number is &ldquo slightly disappointing&rdquo given a continued capital buildup, said Goldman Sachs Group Inc. analysts led by Melissa Kuang.

OCBC&rsquo s Dividend Announcement May Disappoint Market: Citi

The miss in non-lending income, largely due to lower insurance income, is a &ldquo major&rdquo one, according to Morgan Stanley&rsquo s analyst Nick Lord.

&ldquo We anticipate challenges in the global macro environment,&rdquo OCBC&rsquo s Chief Executive Officer Helen Wong said in a statement, citing changes in monetary policies, persistent inflationary pressures, major elections and rising geopolitical tensions. She said however that &ldquo Asia holds immense growth potential.&rdquo

Wong also expects a dip in this year&rsquo s net interest margin, a profitability gauge for banks&rsquo lending. The figure is seen to be in the range of 2.2% to 2.25%, according to the bank, from 2.28% in 2023.

Rival United Overseas Bank Ltd. had also signaled that the uncertain global economic outlook is clouding its loan growth projection for this year, even though it posted record annual earnings on the heels of its purchase of Citigroup Inc.&rsquo s retail assets in Southeast Asia. DBS Group Holdings Ltd. saw interest rates softening, though cheered the market with a bonus share issue with room to return more to shareholders this year.

Here are more details of OCBC&rsquo s earnings:

Net interest margin at 2.29% shrank by two basis points from a year ago, though was slightly higher than in the third quarter
Net fee income including credit cards and wealth rose 16% to S$460 million
Allowances were down 41% to S$187 million
Wealth clients&rsquo assets under management rose 2% to S$263 billion as of Dec. 31
Loans stood at S$297 billion at end-2023, barely changed from S$295 billion a year ago

OCBC&rsquo s 2023 Net Profit Hit a Record S$7 Billion, Ups Dividend: 5 Highlights from the Bank&rsquo s Latest Results

Wed, 28 February 2024 at 1:12 pm SGT· 5-min read

Royston Yang

In this article:

OCBC Ltd (SGX: O39) is the last of Singapore&rsquo s three banks to release its 2023 earnings.

Its peers United Overseas Bank Ltd (SGX: U11) and DBS Group (SGX: D05) both released sparkling sets of earnings as higher interest rates boosted their net interest income (NII).

OCBC also did not disappoint.

The lender saw its net profit hit S$7 billion for the first time and upped its total dividend by 21% year on year.

Here are five highlights from the bank&rsquo s latest financial results.

1. Net profit at a record high

For 2023, OCBC&rsquo s NII shot up 25% year on year to S$9.6 billion as higher interest rates boosted the bank&rsquo s net interest margin (NIM).

Non-interest income rose 7% year on year to S$3.9 billion.

As a result, total income improved by 20% year on year to S$13.5 billion.

Next, operating expenses rose just 8% year on year to S$5.2 billion leading to operating profit (before allowances) jumping 28% year on year to S$8.3 billion.

Allowances increased by 25% year on year to S$733 million but this was offset by a slightly higher share of profits from associates.

As a whole, net profit climbed 27% year on year to a record high of S$7 billion for 2023.

2. A steady rebound in NIMs

The bank&rsquo s NIM came in much stronger for the year as an increase was seen across all its markets.

2023&rsquo s NIM increased by 0.37 percentage points from 1.91% a year ago to 2.28%.

For OCBC&rsquo s fourth quarter of 2023 (4Q 2023), NIM rebounded to 2.29%, up from the low of 2.26% two quarters ago and represents two consecutive quarter-on-quarter increases.

The lender&rsquo s loan book stayed flat year on year at around S$292.8 billion with around 53% of its total loans made up of housing loans and building and construction loans.

On a constant currency basis, OCBC&rsquo s loan book would have grown by 2% year on year.

3. Higher non-interest income

Moving on to OCBC&rsquo s non-interest income.

2023&rsquo s 7% year-on-year increase was primarily driven by higher trading income, which rose 8.1% year on year to S$1 billion, and better investment income of S$246 million versus just S$15 million in 2022.

The blue-chip bank&rsquo s life and general insurance arm, led by Great Eastern Holdings (SGX: G07), also reported a slight increase from S$803 million to S$808 million.

Net fees and commissions, however, dipped from S$1.85 billion in 2022 to S$1.8 billion in 2023.

Credit card, loans, and trade-related fees saw a year-on-year improvement but this was more than offset by weaker brokerage and fund management fees.

Looking at the wealth management division, total income jumped 26% year on year to S$4.3 billion with contributions from both the banking and insurance arms.

Assets under management also rose 2% year on year to S$263 billion.

4. Well-controlled costs along with a lower NPL ratio

With expenses rising by less than the increase in total income, OCBC&rsquo s cost-to-income (CIR) ratio improved from 42.9% in 2022 to 38.7% in 2023.

On a quarterly basis, the bank&rsquo s CIR has steadily risen over the past four quarters, going from 36.3% in 4Q 2022 to 40% in 4Q 2023.

The increase was partly due to S$9 million set aside as a one-off payment to 14,000 junior employees to cope with the higher cost of living caused by inflation.

The bank&rsquo s non-performing loan (NPL) amount has steadily declined over the last four quarters, signalling a resilient loan book.

OCBC&rsquo s NPL ratio fell from 1.2% in 2022 to just 1% in 2023.

5. An increase in dividends

In tandem with the record profit, OCBC increased its final dividend by S$0.02 to S$0.42.

Together with the interim dividend of S$0.40, the total dividend for last year came up to S$0.82.

This level of dividend represents a 21% year-on-year increase from 2022&rsquo s S$0.68.

OCBC&rsquo s payout ratio stayed constant for both years at 53%.

Get Smart: A cautious outlook for 2024

CEO Helen Wong sounded a cautious tone for 2024.

On one hand, OCBC achieved a milestone with sustainable finance commitments exceeding S$50 billion, two years ahead of schedule.

On the other, she anticipates challenges ahead in light of rising geopolitical tensions, inflationary pressures, and changes in monetary policy.

Interest rates are likely to trend downwards in the second half of this year but Asia is expected to perform well despite an anticipated global growth slowdown.

NIM is projected to come in between 2.2% to 2.25% for 2024 while loans are expected to grow by single-digit percentage year on year.

By the time your child grows up, inflation will have gobbled up their savings. If you not only want to protect their money but also grow it, there are 3 SGX stocks you can consider buying. One has already proven to give a 55.8% dividend pay rise. Get all the details in our latest special FREE report. Just click here.

Disclosure: Royston Yang owns shares of DBS Group.

The post OCBC&rsquo s 2023 Net Profit Hit a Record S$7 Billion, Ups Dividend: 5 Highlights from the Bank&rsquo s Latest Results appeared first on The Smart Investor.

Same set of results , 2 contrasting headlines . The first by Bloomberg , the second from The Smart Investor .
See which one you prefer .

OCBC shares dip as profit misses, dividend outlook disappoints

By Chanyaporn Chanjaroen

(Bloomberg) &mdash Oversea-Chinese Banking Corp.&rsquo s fourth-quarter profit missed estimates on lower income from insurance while analysts said the lender&rsquo s dividend outlook likely disappointed investors.

Net income rose 12% to S$1.62 billion ($1.2 billion) in the three months ended Dec. 31 from a year earlier, Southeast Asia&rsquo s second-largest lender said Wednesday. That missed the S$1.71 billion average estimate of four analysts surveyed by Bloomberg.

Shares of the lender fell as much as 3% in Singapore, the most in more than six months.

With full-year earnings hitting an all-time high of S$7 billion, OCBC raised its 2023 dividend by 21% and said it&rsquo ll maintain a 50% target for its dividend payout ratio. The guidance for this year&rsquo s number is &ldquo slightly disappointing&rdquo given a continued capital buildup, said Goldman Sachs Group Inc. analysts led by Melissa Kuang.

OCBC&rsquo s Dividend Announcement May Disappoint Market: Citi

The miss in non-lending income, largely due to lower insurance income, is a &ldquo major&rdquo one, according to Morgan Stanley&rsquo s analyst Nick Lord.

&ldquo We anticipate challenges in the global macro environment,&rdquo OCBC&rsquo s Chief Executive Officer Helen Wong said in a statement, citing changes in monetary policies, persistent inflationary pressures, major elections and rising geopolitical tensions. She said however that &ldquo Asia holds immense growth potential.&rdquo

Wong also expects a dip in this year&rsquo s net interest margin, a profitability gauge for banks&rsquo lending. The figure is seen to be in the range of 2.2% to 2.25%, according to the bank, from 2.28% in 2023.

Rival United Overseas Bank Ltd. had also signaled that the uncertain global economic outlook is clouding its loan growth projection for this year, even though it posted record annual earnings on the heels of its purchase of Citigroup Inc.&rsquo s retail assets in Southeast Asia. DBS Group Holdings Ltd. saw interest rates softening, though cheered the market with a bonus share issue with room to return more to shareholders this year.

Here are more details of OCBC&rsquo s earnings:

Net interest margin at 2.29% shrank by two basis points from a year ago, though was slightly higher than in the third quarter
Net fee income including credit cards and wealth rose 16% to S$460 million
Allowances were down 41% to S$187 million
Wealth clients&rsquo assets under management rose 2% to S$263 billion as of Dec. 31
Loans stood at S$297 billion at end-2023, barely changed from S$295 billion a year ago

OCBC&rsquo s 2023 Net Profit Hit a Record S$7 Billion, Ups Dividend: 5 Highlights from the Bank&rsquo s Latest Results

Wed, 28 February 2024 at 1:12 pm SGT· 5-min read

Royston Yang

In this article:

OCBC Ltd (SGX: O39) is the last of Singapore&rsquo s three banks to release its 2023 earnings.

Its peers United Overseas Bank Ltd (SGX: U11) and DBS Group (SGX: D05) both released sparkling sets of earnings as higher interest rates boosted their net interest income (NII).

OCBC also did not disappoint.

The lender saw its net profit hit S$7 billion for the first time and upped its total dividend by 21% year on year.

Here are five highlights from the bank&rsquo s latest financial results.

1. Net profit at a record high

For 2023, OCBC&rsquo s NII shot up 25% year on year to S$9.6 billion as higher interest rates boosted the bank&rsquo s net interest margin (NIM).

Non-interest income rose 7% year on year to S$3.9 billion.

As a result, total income improved by 20% year on year to S$13.5 billion.

Next, operating expenses rose just 8% year on year to S$5.2 billion leading to operating profit (before allowances) jumping 28% year on year to S$8.3 billion.

Allowances increased by 25% year on year to S$733 million but this was offset by a slightly higher share of profits from associates.

As a whole, net profit climbed 27% year on year to a record high of S$7 billion for 2023.

2. A steady rebound in NIMs

The bank&rsquo s NIM came in much stronger for the year as an increase was seen across all its markets.

2023&rsquo s NIM increased by 0.37 percentage points from 1.91% a year ago to 2.28%.

For OCBC&rsquo s fourth quarter of 2023 (4Q 2023), NIM rebounded to 2.29%, up from the low of 2.26% two quarters ago and represents two consecutive quarter-on-quarter increases.

The lender&rsquo s loan book stayed flat year on year at around S$292.8 billion with around 53% of its total loans made up of housing loans and building and construction loans.

On a constant currency basis, OCBC&rsquo s loan book would have grown by 2% year on year.

3. Higher non-interest income

Moving on to OCBC&rsquo s non-interest income.

2023&rsquo s 7% year-on-year increase was primarily driven by higher trading income, which rose 8.1% year on year to S$1 billion, and better investment income of S$246 million versus just S$15 million in 2022.

The blue-chip bank&rsquo s life and general insurance arm, led by Great Eastern Holdings (SGX: G07), also reported a slight increase from S$803 million to S$808 million.

Net fees and commissions, however, dipped from S$1.85 billion in 2022 to S$1.8 billion in 2023.

Credit card, loans, and trade-related fees saw a year-on-year improvement but this was more than offset by weaker brokerage and fund management fees.

Looking at the wealth management division, total income jumped 26% year on year to S$4.3 billion with contributions from both the banking and insurance arms.

Assets under management also rose 2% year on year to S$263 billion.

4. Well-controlled costs along with a lower NPL ratio

With expenses rising by less than the increase in total income, OCBC&rsquo s cost-to-income (CIR) ratio improved from 42.9% in 2022 to 38.7% in 2023.

On a quarterly basis, the bank&rsquo s CIR has steadily risen over the past four quarters, going from 36.3% in 4Q 2022 to 40% in 4Q 2023.

The increase was partly due to S$9 million set aside as a one-off payment to 14,000 junior employees to cope with the higher cost of living caused by inflation.

The bank&rsquo s non-performing loan (NPL) amount has steadily declined over the last four quarters, signalling a resilient loan book.

OCBC&rsquo s NPL ratio fell from 1.2% in 2022 to just 1% in 2023.

5. An increase in dividends

In tandem with the record profit, OCBC increased its final dividend by S$0.02 to S$0.42.

Together with the interim dividend of S$0.40, the total dividend for last year came up to S$0.82.

This level of dividend represents a 21% year-on-year increase from 2022&rsquo s S$0.68.

OCBC&rsquo s payout ratio stayed constant for both years at 53%.

Get Smart: A cautious outlook for 2024

CEO Helen Wong sounded a cautious tone for 2024.

On one hand, OCBC achieved a milestone with sustainable finance commitments exceeding S$50 billion, two years ahead of schedule.

On the other, she anticipates challenges ahead in light of rising geopolitical tensions, inflationary pressures, and changes in monetary policy.

Interest rates are likely to trend downwards in the second half of this year but Asia is expected to perform well despite an anticipated global growth slowdown.

NIM is projected to come in between 2.2% to 2.25% for 2024 while loans are expected to grow by single-digit percentage year on year.

By the time your child grows up, inflation will have gobbled up their savings. If you not only want to protect their money but also grow it, there are 3 SGX stocks you can consider buying. One has already proven to give a 55.8% dividend pay rise. Get all the details in our latest special FREE report. Just click here.

Disclosure: Royston Yang owns shares of DBS Group.

The post OCBC&rsquo s 2023 Net Profit Hit a Record S$7 Billion, Ups Dividend: 5 Highlights from the Bank&rsquo s Latest Results appeared first on The Smart Investor.

think may see a 13.10 closing if they want to sabotage the shortists

If you look at the actual phrasing in results announcements, it' s usually ' the Board recommends' or ' proposes' a final dividend of xxx. Final / special dividends proposed or declared are usually subject to approval by shareholders at AGMs.

prophetjul ( Date: 29-Feb-2024 15:29) Posted:

Think you missed the point.
Firstly what you mention about consolidating of accounts which is already done and finalised. Hence, the declaration of dividends.
My grouse/point is why does it take 3 months to effect payment from announcement?

FATABA ( Date: 29-Feb-2024 10:23) Posted:

This is the FULL year closing . Most companies are also about this timing .
Esp w so much oversea sub ....it is not easy for HQ to consolidate and close all the accounts in a shorter time
FY

Think you missed the point.
Firstly what you mention about consolidating of accounts which is already done and finalised. Hence, the declaration of dividends.
My grouse/point is why does it take 3 months to effect payment from announcement?

FATABA ( Date: 29-Feb-2024 10:23) Posted:

This is the FULL year closing . Most companies are also about this timing .
Esp w so much oversea sub ....it is not easy for HQ to consolidate and close all the accounts in a shorter time
FYI

prophetjul ( Date: 29-Feb-2024 08:57) Posted:

Ex date and payment date is so longggggggggg way away. 8th and 21st May 2024! Why is it so slowwwwww?
Ridiculous!

Tonight is USA PCE data.
If it is a strong print, markets are likely to take a hit as the chances of FED cut sooner would be reduced.
Waiting to pick up more.

This is the FULL year closing . Most companies are also about this timing .
Esp w so much oversea sub ....it is not easy for HQ to consolidate and close all the accounts in a shorter time
FYI

prophetjul ( Date: 29-Feb-2024 08:57) Posted:

Ex date and payment date is so longggggggggg way away. 8th and 21st May 2024! Why is it so slowwwwww?
Ridiculous!

Login Register

OCBC

Same set of results , 2 contrasting headlines . The first by Bloomberg , the second from The Smart Investor . See which one you prefer .

OCBC shares dip as profit misses, dividend outlook disappoints

OCBC&rsquo s 2023 Net Profit Hit a Record S$7 Billion, Ups Dividend: 5 Highlights from the Bank&rsquo s Latest Results

1. Net profit at a record high

2. A steady rebound in NIMs

3. Higher non-interest income

4. Well-controlled costs along with a lower NPL ratio

5. An increase in dividends

Get Smart: A cautious outlook for 2024

Same set of results , 2 contrasting headlines . The first by Bloomberg , the second from The Smart Investor . See which one you prefer .

OCBC shares dip as profit misses, dividend outlook disappoints

OCBC&rsquo s 2023 Net Profit Hit a Record S$7 Billion, Ups Dividend: 5 Highlights from the Bank&rsquo s Latest Results

1. Net profit at a record high

2. A steady rebound in NIMs

3. Higher non-interest income

4. Well-controlled costs along with a lower NPL ratio

5. An increase in dividends

Get Smart: A cautious outlook for 2024

Same set of results , 2 contrasting headlines . The first by Bloomberg , the second from The Smart Investor .
See which one you prefer .

Same set of results , 2 contrasting headlines . The first by Bloomberg , the second from The Smart Investor .
See which one you prefer .