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Warm supply: OCBC down 6.3% after Q4 web earnings misses out on expert price quotes

SHARES of OCBC O39 dropped in the early morning on Wednesday (Feb 23), after the financial institution claimed its web earnings for the 4th quarter finished Dec 31, 2021 dropped 14 percent on year to S$ 973 million.

As at 9 remain in the early morning, the counter got to a reduced of S$ 12.33, down 6.3 percent or S$ 0.83, with 1.5 million shares transforming hands.

No wedded bargains were taped, according to ShareInvestor information.

As at 9.33 am, its shares relieved somewhat to S$ 12.52, down 4.9 percent or S$ 0.64. The counter continues to be among the leading traded by quantity, with 7.1 million shares worth S$ 89.3 million transforming hands.

The loan provider’s 4th quarter outcomes had actually missed out on the S$ 1.18 billion typical price quote based upon 4 experts questioned by Refinitiv.

The incomes were likewise weak contrasted to its peers. Previously in February, DBS reported a web earnings of S$ 1.4 billion for its 4th quarter finished Dec 31, 2021, up 37 percent from a year back. On the other hand, UOB’s web earnings for the 3 months finished Dec 31, 2021 stood at S$ 1.02 billion, contrasted to S$ 688 million a year previously.

When it comes to the complete year, OCBC published a web earnings of S$ 4.86 billion, which is a 35 percent rise from a year previously, amidst solid development in non-interest revenue and also reduced allocations, which balance out a decrease in web rate of interest revenue amidst a reduced rate of interest atmosphere.

In a record on Wednesday, Jefferies expert Krishna Guha claimed while OCBC’s wide fads, consisting of funding development, margins, non-interest revenue and also expenditures, were mostly in accordance with peers, “the raised credit history expense and also no talk about returns plan were a dampener”.

He declares on the remediation of the full-year returns to pre-pandemic degrees, however kept in mind that it is “underwhelming” provided the financial institution’s CET-1 (Usual Equity Rate 1) proportion of 15.5 percent.

Guha included: “Done in, outcomes were tad reluctant of agreement and also some colour on property top quality and also credit history expense support for the present would certainly rate.”


  • Warm supply: UOB up 1.8% after solid FY21 outcomes
  • Brokers’ take: Experts elevate targets on DBS after solid outcomes revealing
  • Brokers’ take: RHB reduces OCBC target rate on enhanced fraud threats, keeps ‘get’

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