- OCBC‘s net income for 4Q came in at S$1.69 billion, missing the estimate of S$1.8 billion.
- Net interest income slightly decreased by 0.3% year-over-year to S$2.46 billion, exceeding the estimate of S$2.31 billion.
- Non-interest income rose by 18% year-over-year, reaching S$961 million, but below the estimated S$1.1 billion.
- Total income increased by 4.4% year-over-year to S$3.42 billion, falling short of the S$3.53 billion estimate.
- Allowances increased by 11% year-over-year, totaling S$208 million.
- Wealth management fees grew significantly by 26% year-over-year to S$246 million.
- The net interest margin was 2.15%, compared to 2.29% the previous year, and above the estimate of 2.07%.
- The non-performing loans ratio improved to 0.9% from 1% year-over-year, better than the estimate of 0.92%.
- The common equity tier 1 ratio increased to 17.1%, compared to 15.9% the previous year, and exceeded the estimate of 16.6%.
- The total capital adequacy ratio was 19.7%, up from 18.1% year-over-year, surpassing the 19.2% estimate.
- The tier 1 ratio was 17.8%, compared to 16.5% the previous year, slightly above the estimate of 17.6%.
- For the full year 2024, OCBC declared a final dividend per share of S$0.41, slightly down from S$0.42 the previous year, along with a special dividend of S$0.16 per share.
- OCBC‘s 2024 net income was S$7.59 billion, an increase of 8.1% year-over-year but below the estimate of S$7.73 billion.
- OCBC predicts a net interest margin in the region of 2% for 2025.
- The bank plans to return S$2.5 billion of capital to shareholders over the next two years through special dividends and share buybacks.
- OCBC expects mid-single-digit loan growth in 2025.
- The cost-to-income ratio is anticipated to be in the low 40s in 2025.
- Credit costs are expected to range between 20 to 25 basis points in 2025.
- OCBC aims for a total dividend payout ratio of 60% for the fiscal years 2024 and 2025.
- The bank emphasizes caution regarding increased geopolitical complexities.
- The board has a mixed recommendation from analysts, with 9 buys, 9 holds, and 1 sell.
“`
A look at OCBC Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma’s Smart Scores, Oversea-Chinese Banking Corporation Limited (OCBC) shows a positive long-term outlook. With a strong rating in Dividend and Growth factors, OCBC is positioned well for steady performance and potential expansion. The company’s high Momentum score indicates strong market traction, suggesting continued positive momentum in the future. Although Value and Resilience scores are slightly lower, the overall outlook for OCBC remains favorable.
OCBC, a leading financial institution, offers a wide range of services including deposit-taking, lending, investment banking, asset management, and insurance. With solid ratings in Dividend, Growth, and Momentum, OCBC demonstrates strengths in key areas that bode well for its long-term prospects. Investors may find OCBC to be a promising choice based on its diversified portfolio of financial services and its overall positive outlook as indicated by Smartkarma’s assessment.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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