OCBC reported 3Q net earnings of S$1.23b, up 61% YoY. However, stripping off one-off gains of S$391m from its increased stake in Bank of Ningbo Co. (which became a 20% associate on 30 Sep 2014), earnings came in at S$841m, better than consensus of S$839m as compiled by Bloomberg.

This set of results also included the maiden contribution from 97.5%-owned OCBC Wing Hang Bank (formerly Wing Hang Bank), which came up to S$38m. Net Interest Margin (NIM) improved YoY, but was down QoQ to 1.68%. Fee and commission income rose 16% YoY or 15% QoQ to S$406m, buoyed by strong double-digit growth from Wealth, Credit Card and Fund Management. NPL ratio remained low at 0.7%.

UOB will be releasing its results this evening and DBS will be announcing its 3Q earnings tomorrow.

Source: OCBC Research - 30 Oct 2014