Singapore Stock Market News

OCBC - Strong fees, NIM expansion

StockFanatic
Publish date: Wed, 30 Apr 2014, 03:47 PM
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1Q14 core net profit of S$867m exceeded expectations, at 29% of our FY14 forecast and 30% of consensus.

The outperformance came from:
1)stronger-than-expected fees, as wealth-management fees surprisingly held up in a quiet quarter;

2) strong trading income;

3) strong contributions from GEH;

4) controlled cost growth; and

5) lower-than-expected provisions.

With this strong set of results, we see room for earnings upside, though we keep our EPS, Hold rating and GGM-based target price pending its results briefing this afternoon.
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