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6681-6700 of 6990
Moving up again. Will it clear $10 anytime?
It' s interesting that GE provided less earnings, yet OCBC was able to come up with sterling results.
Really a battle of bulls and bears in this soft market.
probably some positioning by funds... many reasons but can only think of these few...
1. cash call with discounted price
2. sale of GE, probably partial
3. synergy with Wing Hang Bank
Kyoto2008 ( Date: 06-Aug-2014 10:14) Posted:
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The large transaction indicates a single big buyer bought up $2.6mln worth of OCBC shares just before 10am.
Mkt opened today soft. OCBC continued to see selling in the first five minutes, but the shares are quickly bought up.
A look at the market depth shows that $10 is possibly reachable within next couple of days. Buyers are waiting for the best price, hence vol increases but yet to see buyers hop queue to buy up an excellent opportunity.
Today, I was monitoring OCBC price throughout the day.
It' s a rich experience.
Sellers were out in droves, can see them at many price levels. Very frightening to see all the walls of sellers.
I knew many were not happy with the Wing Hang purchase, but OCBC did exceptionally well. So why didn' t the tide turn?
Perhaps shareholders didn' t know of the good quarterly results, that could be the reason. Until now, I still don' t know.
What I do see is that there are opportunists who absorbed all the shares sold by disgruntled or uninformed shareholders of OCBC.
This explains why although most of the trades were " sell down" , the shares were quickly absorbed and assimilated. Who is or are buying?
I just saw a flash at the end. Suddenly a 300 lot buyer appeared at the last minute to eat up the sell queue, just at the close of trading at 5 pm.
Someone or some entity grabbed $3mln worth of shares. Either he' s a very rich man, or a fund house. This 300 lot buyer came from nowhere, he was not on the queue, but he could very well be one of those who have been buying up OCBC shares as fast as they are being sold down.
Either way, there is an undercurrent of interest kept at very low profile of buying without raising the alarm. As many shares are thrown into the market, they are absorbed, not at the highest price but at rock bottom lelong price.
OCBC price rose today. It could have jumped, rocketed up. Would it do so tomorrow?
All depends on the shareholders, will they sell out or will be stand by the bank.
Within the first hour, all should be apparent.
Oops, sorry, this is old news.
Let' s see the full set of results tomorrow in the papers. Very keen to see the details.
Plse ignore the old news if you have seen it before.
Kyoto2008 ( Date: 05-Aug-2014 18:07) Posted:
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OCBC' s NPLs have dropped to $1.3bln (NPL ratio declined from 0.8% in 2013 to 0.7% in 2014). This compares favourably against UOB' s NPLs of $2.3 bln (NPL ratio unchanged at 1.2%). DBS has even better set of figures for NPLs (it improved from 1.2% to 0.9%).
With a strong and disciplined risk management team, OCBC can take advantage of it' s Wing Hang bank purchase to generate more revenue from China, just like what DBS is presently able to do. Wealth management, cash management, treasury (RMB) are some of the businesses that OCBC has their eyes on. Among all the local banks in SG, OCBC has the oldest link with China dating back pre war times. Now at last, it has gained access to the up and coming world power in the Asian century.
OCBC Group posts Q4 2013 net profit of $565m
Oversea-Chinese Banking Corporation Limited (&ldquo OCBC Bank&rdquo ) reported a net profit after tax of S$715 million for the fourth quarter of 2013 (&ldquo 4Q13&rdquo ), 8% higher than S$663 million a year ago (&ldquo 4Q12&rdquo ). This was underpinned by a 22% year-on-year increase in net profit after tax from our banking operations that included record quarterly earnings from our Malaysian and Indonesian banking subsidiaries which grew 37% and 17% respectively in local currency terms
(34% and 6% in SGD terms).
The Group&rsquo s net profit after tax for the financial year ended 31 December 2013 (&ldquo FY13&rdquo ) was S$2.77 billion. The strong momentum from our customer-related businesses lifted net interest income and fee income to record high levels. Our Malaysian and Indonesian banking subsidiaries also reported record full year results, while our insurance subsidiary Great Eastern Holdings (&ldquo GEH&rdquo ) achieved strong underlying business growth. Excluding non-core divestment gains of S$1.17 billion a year ago (&ldquo FY12&rdquo ), core net profit after tax was 2% lower, as the strong customer-related business results throughout the year were offset by lower net trading income and unrealised mark-to-market losses from GEH&rsquo s Non-Participating Fund.
Full Year Performance
Spurred by strong growth in both loans and deposits, full year net interest income was a record S$3.88 billion, 4% higher than S$3.75 billion a year ago. Customer loans rose 18% year-on-year to S$170 billion from broad-based growth in Singapore and key overseas markets, which was led by trade finance and loans to the housing and building & construction sectors. Net interest margin for FY13 was stable at 1.64% over the four quarters in 2013. Compared to the previous year, net interest margin declined 13 basis points as a result of the persistently low interest rate environment and the repricing of existing mortgage loans in response to market competition. This was partially mitigated by an improvement in corporate and commercial loan spreads and lower costs from deposit funding.
Our customer-related businesses recorded strong growth momentum, which increased trade finance income by 12% and treasury income from customer flows by 26% year-on-year. Fee and commission income rose 13% from S$1.20 billion in FY12 to reach a record S$1.36 billion, contributed by income growth in wealth management, loan-related, fund management and credit cards. Net gains from the sale of investment securities increased 46% to S$133 million. These income increases were however ffset by a 49% drop in net trading income to S$262 million. Profit from life assurance also fell 13% to S$599 million from S$692 million a year ago, mainly from unrealised mark-to-market losses in GEH&rsquo s Non-Participating Fund. GEH&rsquo s underlying insurance business recorded strong growth in weighted
new business premiums and new business embedded value. The Group&rsquo s overall non-interest income, excluding divestment gains, declined 5% to S$2.74 billion from S$2.90 billion a year ago.
The Group&rsquo s overall income from wealth management activities (comprising income from insurance, private banking, asset management, stockbroking and sales of other wealth management products) grew to a new high of S$1.93 billion, an increase of 5% from S$1.84 billion a year ago. As a share of total income, wealth management activities contributed 29%, compared with 28% in FY12. OCBC&rsquo s private banking business maintained its strong growth trajectory, with assets under management increasing 8% to US$46 billion (S$58 billion) as at 31 December 2013 from US$43 billion (S$52 billion) a year ago.
Operating expenses were well-managed, up 3% at S$2.78 billion compared to S$2.70 billion in FY12. Staff costs increased 4% to S$1.72 billion, reflecting a 3% rise in headcount to support business expansion in our key markets, annual salary increments and higher incentive compensation linked to business volume growth.
The cost-to-income ratio was 42.0% in FY13, compared with 40.6% a year ago, mainly as a result of the lower contribution from market-related trading and insurance income.
Allowances for loans and other assets were S$266 million, 2% lower than S$271 million in FY12, while the non-performing loans (&ldquo NPL&rdquo ) ratio improved to 0.7% from 0.8% a year ago.
Fourth Quarter Performance
Net interest income achieved a new quarterly high from robust asset and deposit growth, rising 12% to S$1.03 billion. Non-interest income was lower at S$679 million, down 10% from S$757 million in 4Q12. This was largely attributed to lower net trading income that fell 49% to S$69 million and lower life assurance profit that declined 22% to S$165 million. Fees and commissions rose 12% to S$341 million, led by higher wealth management, loan-related and trade-related fees. Operating expenses for the quarter declined 1% to S$713 million and net allowances were unchanged year-on-year at S$68 million.
Compared to the previous quarter, net profit after tax from banking operations grew 11% as a result of increases in net interest income and net trading income. The Group&rsquo s net profit after tax was 6% lower, which was attributed to a decline in profit from life assurance.
Return on equity, based on core earnings, was 11.6% in FY13, compared with 12.5% a year ago. Core earnings per share for the year was 78.0 cents, compared with 79.1 cents in FY12.
Allowances and Asset Quality
Net allowances for loans and other assets were S$266 million in FY13, a decline of 2% compared with S$271 million a year ago. Specific allowances for loans, net of recoveries and writebacks, fell 29% to S$81 million from S$115 million a year ago. Specific allowances remained low at 5 basis points of loans, compared to 8 basis points of loans in FY12. Portfolio allowances increased 24% to S$183 million from S$148 million a year ago, in line with strong loan growth.
The Group&rsquo s asset quality and coverage ratios remained sound. As at 31 December 2013, total nonperforming assets (&ldquo NPAs&rdquo ) stood at S$1.30 billion, 11% higher year-on-year but 2% lower against the previous quarter. The NPL ratio as at 31 December 2013 was 0.7%, an improvement against 0.8% a year ago and the previous quarter. The Group&rsquo s total cumulative allowances provided a healthy coverage of 134% of total NPAs and 310% of total unsecured NPAs as at 31 December 2013.
Subsidiaries&rsquo Results
Our key subsidiaries contributed positively to the Group&rsquo s strong customer-related business growth. GEH continued to achieve strong underlying insurance business growth, with weighted new business premiums and new business embedded value up 27% and 22% respectively year-on-year. This was driven by sustained momentum across all sales channels in Singapore and Malaysia. The close collaboration between GEH and the OCBC Group also continued to yield robust bancassurance growth.
GEH reported a net profit after tax of S$675 million. Excluding divestment gains, net profit after tax was 12% lower compared to S$768 million a year ago, as strong growth in its underlying insurance business was more than offset by unrealised mark-to-market losses in its Non-Participating Fund. As a result, GEH&rsquo s core net profit after tax contribution to the Group was S$542 million, excluding divestment gains and deducting amortisation of intangible assets and non-controlling interests. This was down 13% from S$622 million a year ago.
OCBC Bank (Malaysia) Berhad reported a record set of results. Full year net profit after tax was MYR946 million (S$374 million), 17% higher than MYR811 million (S$328 million) in FY12. This was achieved through broad-based income growth driven by a 52% increase in Islamic Financing Income, a 2% increase in net interest income and a 2% growth in non-interest income. Operating expenses rose 3% from the previous year while allowances were 29% lower. There was robust loan growth of 17% year-on-year, with the NPL ratio at 2.3%.
Bank OCBC NISP likewise reported a record net profit after tax of IDR1,143 billion (S$137 million), up 25% from IDR915 billion (S$122 million) a year ago. Total income rose 18% year-on-year, underpinned by net interest income growth of 22% and a 5% increase in non-interest income. Operating expenses were 14% higher while allowances increased 5%. Total customer loans were significantly higher by 21% year-on-year and the NPL ratio improved from 0.9% a year ago to 0.7%.
Capital and Funding Position
The Group continued to maintain a strong capital and funding position. Customer deposits were S$196 billion as at 31 December 2013, 19% higher than S$165 billion a year ago and up 8% from S$181 billion of the previous quarter. The loans-to-deposits ratio as at 31 December 2013 was 85.7%, lower compared to 86.2% a year ago and 88.4% of the previous quarter.
As at 31 December 2013, the Common Equity Tier 1 capital adequacy ratio (&ldquo CAR&rdquo ) was 14.5% and Tier 1 CAR and Total CAR were 14.5% and 16.3% respectively. Based on MAS&rsquo transitional Basel III rules for 2013, these ratios were well above the respective regulatory minima of 4.5%, 6% and 10%.
Final Dividend
The Board has proposed a final tax-exempt dividend of 17 cents per share, bringing the FY13 total dividend to 34 cents per share, an increase from 33 cents in FY12. This represents a payout ratio of 42%, which is within our target guidance range of 40% to 50% of the Group&rsquo s core net profit after tax.
The Scrip Dividend Scheme will be applicable to the final dividend, giving shareholders the option to receive the dividend in the form of shares. The issue price of the shares will be set at a 10% discount o the average of the daily volume-weighted average prices during the price determination period from 28 April to 30 April 2014, both dates inclusive.
CEO&rsquo s Comments
Commenting on the Group&rsquo s performance and outlook, CEO Samuel Tsien said: &ldquo Our full year performance underscores the solid fundamentals of our banking, insurance and wealth management franchise. The strong momentum across our customer-related businesses was maintained throughout the year, which substantially offset the lower income from market-related trading and insurance activities. Looking ahead, our overall outlook remains optimistic, given the
positive macroeconomic environment and the underlying growth prospects in our key markets. We will continue to grow prudently, make the best use of our resources, work comfortably within our regulatory obligations and invest in our network and capabilities to support our customers. With our strong financial position and established customer franchise in our chosen markets, we are wellplaced to continue delivering long-term shareholder value.&rdquo
Re-disseminated by The Asian Banker
Today, struggle between the bulls and bears.
OCBC announced a fantastic set of results.
Reuters report:
OCBC net profit S$921 mln vs S$796 mln consensus forecast
* Says sees significant opportunities in Greater China
* Analysts play down risk from China trade finance
By Saeed Azhar
SINGAPORE, Aug 5 (Reuters) - Oversea-Chinese Banking Corp Ltd, Singapore' s No. 2 lender, posted a 54 percent jump in quarterly profit on Tuesday, capping a strong earnings season for the Asian banking hub as growth in China-related trade finance and wealth services offset a property slowdown.
Singapore' s housing market has seen a sharp downturn in response to government cooling measures, with new loan applications falling as much as 40 percent in the second quarter as property sales plunged by half in the first six months of the year.
But a warning by Singapore' s third-biggest lender, United Overseas Bank Ltd, that a small number of its property loans had gone sour did not rattle investors as the other banks saw declining bad debt charges.
Instead, investors fretted more about Singapore' s rising cross-border lending to China just as the Chinese economy experiences its slowest growth since 1990.
Singapore had 12 percent of its banking assets exposed to China-related assets, according to estimates by rating agency Fitch. The rating agency said Asia-Pacific banks had $1.2 trillion of China-related exposure at the end of 2013.
Lending by Asian banks to Chinese corporates saw growth of 39 percent from 2010 to 2013, helped by Singapore' s emergence as an offshore yuan hub.
Mizuho Securities Asia banking analyst James Antos said Singapore lenders - in particular the city-state' s biggest bank, DBS Group Holdings Ltd - had been winning regional market share in the China-related trade finance business.
" They have actually grabbed market share for the trade flows between China and Southeast Asia from banks like HSBC and Standard Chartered. Five years ago you never thought anything like this would ever happen," the Hong Kong-based analyst said, adding that fears of a China meltdown were overblown.
" The risk is easily managed - China is not going to blow up, the Singapore banks are extremely well capitalised and Singapore banks are doing sensible banking, not taking excessive risks," Antos said.
OCBC chief executive Samuel Tsien said Chinese companies' financing activities outside the mainland could slow as Chinese interest rates had eased, narrowing the gap between domestic and offshore rates.
" This reduced the incentive of the importers in China to book financing offshore," he told reporters and analysts.
BEATING EXPECTATIONS
OCBC, which last week boosted its China exposure by gaining over 90 percent control of Hong Kong-lender Wing Hang Ltd, said it aimed to take advantage of growing investment and trade flows between Greater China and Southeast Asia.
The bank earned S$921 million ($739 million) in the three months ending in June, compared with S$597 million a year earlier. The profit was above the S$796 million average forecast of six analysts polled by Reuters.
OCBC shares have underperformed DBS and United Overseas Bank on the back of concerns about the China-related risk associated with the Wing Hang deal and a potential rights issue of about S$3 billion ($2.41 billion) to fund the transaction.
OCBC did not say how much it planned to raise, although Tsien said the bank wanted to maintain a capital adequacy ratio comfortably above regulatory requirements.
As of Monday' s close, OCBC shares had dropped 3.3 percent so far this year, compared with an almost 6 percent rise for larger rival DBS and an 8.3 percent gain for UOB. OCBC shares were up 1 percent in early trading on Tuesday, after the results came out.
DBS last week reported a 9 percent rise in quarterly profit, beating expectations. UOB said quarterly profit grew 3.2 percent although its bad debt charges doubled.
OCBC' s quarterly net interest income - the gap between what a bank makes from loans and pays on deposits - rose 17 percent to S$1.1 billion, on the back of a 12 percent year-on-year rise in customer loans.
Contributions from insurance unit Great Eastern Holdings boosted non-interest income by 40 percent.
Bad debt charges fell just over 20 percent to S$66 million. UOB, in contrast, doubled its bad debt charges in the second quarter on losses on property and other loans. DBS saw a 48 percent decline in similar charges. (1 US dollar = 1.2452 Singapore dollar) (Reporting by Saeed Azhar Editing by Stephen Coates)
Hope it can clear $10 again. It reached > $10 a couple of days ago.
Undoubtedbly the world' s strongest bank!
OCBC unveils record quarterly results Q2 net profit surges 54%
Need to find a good support at $9.82 first and break $10.00.
http://mystocksinvesting.com/singapore-stocks/ocbc-bank/ocbc-bank-break-resistance/
oceanblue ( Date: 31-Jul-2014 14:54) Posted:
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OCBC has been a laggard amongst local banks for a pretty long time. Time to do catch up.
price surge. TP $11 after next tuesday' s result.
if right issue i will over subscribe it.
The price is now tossed around by bulls and bears, but I see the bear bear queue quite big.
Sorry, I exit.
GorgeousOng ( Date: 30-Jul-2014 09:41) Posted:
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You wanna to buy from me....
"that is >$10"?😜 😜 😜
Cheers!!!
Kyoto2008 ( Date: 30-Jul-2014 09:23) Posted:
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Should get into OCBC. I chopped 5 lots liao!
Price has spiked early in the morning, up 17cents.
Confirmed, OCBC will take WH private, they have 98%.
Saw CNA showed OCBC now owns more than 97% of Wing Hang bank. Must check BT tomorrow to verify, maybe see wrongly!
Watch the price of OCBC tomorrow.