I always say OCBC should be at least $20,,,,,,,, so todays cheong is nothing..... already analysts are starting to give $20 plus price target...... Heard from my DBS Treasures RM, that DBS Research thinks likewise too and will be coming out with a new report .......
note the big development I talking about may be expecting soon..... it will have some benefit for the shareholders but there could be some side effects....../ anyway, the price today is showing some positive reactions, so,could be a good sign.......
meanwhile some news......
OCBC Malaysia ready to support those looking to tap opportunities in Johor-Singapore Special Economic Zone
https://theedgemalaysia.com/node/740133aragosta ( Date: 16-Dec-2024 18:24) Posted:
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But are they going to reward the shareholders with special dividend with this sale?
OCBC disposes entire 33.33% stake in Hong Kong Life Insurance
Oversea-Chinese Banking Corporation (OCBC) announced that its wholly-owned subsidiary, OCBC Bank (Hong Kong) is selling its entire 33.33% stake or 190 million shares in Hong Kong Life Insurance to Yue Xiu Enterprises (Holdings) Limited.
The net asset value of the entire Hong Kong Life was HK$1.02 billion as at Dec 31, 2023.
The consideration for the sale shares is HK$589.3 million, payable upon completion and will be satisfied wholly in cash. The consideration was arrived at following arm&rsquo s length negotiations on a willing-buyer, willing-seller basis, taking into account, among others, factors such as the net asset value and the embedded value.
The transaction is not expected to have a material impact on the net tangible assets or earnings per share of OCBC Group for the financial year ending Dec 31, 2024.
it' s better to be sold off than privatised if you are owning ocbc shares atm
selling GE
- one time boost to cash example keppel sales of KOM
- expect better div payout if no reinvestment from OCBC
privatised GE
- save cost
- maintain or slightly better div from GE
- longer consistant div as GE is a cash cow giving good and stable div.
my view
Nippon72 ( Date: 06-Aug-2023 10:56) Posted:
I am curious what happens when OCBC are able to privatise GEL? How does it benefit OCBC shareholders?
I heard something that they will be able to sell it off, or save some listing cost. I bought OCBC years back becos it is only something I could afford then and its hidden gem in GEL.
If GEL is privatised, it should still be contributing to OCBC' s bottomline? Or can it be sold off once is being privatised?
Anyone can enlighten me? GEL is the cash cow in OCBC, not too sure how it can benefit the bank if being privatised?
Vested.
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I am curious what happens when OCBC are able to privatise GEL? How does it benefit OCBC shareholders?
I heard something that they will be able to sell it off, or save some listing cost. I bought OCBC years back becos it is only something I could afford then and its hidden gem in GEL.
If GEL is privatised, it should still be contributing to OCBC' s bottomline? Or can it be sold off once is being privatised?
Anyone can enlighten me? GEL is the cash cow in OCBC, not too sure how it can benefit the bank if being privatised?
Vested.
The new normal is the commitment to pay 50% of profits as dividens going forward . This was announced after their FY2022 Q4 results .
Its makes the dividen payouts much more predicatable and was very much welcomed by the shareholders who brought up the question at this years AGM .
Unlike UOB and DBS whom usually pays 50% , OCBC had not done the same for as long as I can remember . However , if you were to look at the historical dividen payouts for OCBC , you can notice 2 trends :
1) The final dividen is either the same or higher than its interim
2) The total dividen is either the same or higher than previous years
In short , their dividens were seen as " growing " over the years when they do not commit to 50% payout . On the other hand , UOB and DBS dividens may fluctuate depending on the year' s earnings .
Moving forward , OCBC dividens may also fluctuate ( ie this year lesser than previous years ) but I' d rather they stick to this new formula . I am OK with the fluctuation . You earn less I get less better than you earn more I still get the same , right ?
Goldfinger ( Date: 04-Aug-2023 07:18) Posted:
| Looks like 40cts May be the new normal |
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OCBC expects stronger net interest margin but stays watchful of slowing global growth
OCBC will likely deliver a stronger net interest margin (NIM) for 2023 than previously expected, but will stay prudent as the global growth momentum is expected to slow heading into 2024, said group chief executive Helen Wong.
Wong earlier guided NIM to be around 2.2 per cent. She now expects NIM will be above 2.2 per cent for 2023, and possibly be stable around this quarter&rsquo s NIM of 2.26 per cent.
The bank continued to raise its general allowances, however, as it takes on a prudent approach to guard against slowing global growth ahead, Wong said at the bank&rsquo s earnings briefing on Friday (Aug 4).
OCBC reported a net profit of S$1.7 billion for the second quarter ended June, up 34 per cent from a year earlier. This was driven by growth in net interest income, while slightly offset by a spike in general allowances.
The net profit figure represented a slight miss from the S$1.8 billion mean estimate from four analysts polled by Refinitiv.
Net interest income gained 40 per cent on year to S$2.4 billion amid asset growth and higher NIM, with NIM up 55 basis points to 2.26 per cent on the back of higher market interest rates.
While OCBC&rsquo s hike in NIM expectations is the lowest among the trio of local banks, group chief financial officer Goh Chin Yee noted that during the first quarter, the bank&rsquo s NIM guidance was the highest among peers.
Non-interest income grew 11 per cent to S$1.1 billion, mainly from net gains from the sale of investment securities and higher profit from insurance, partly offset by lower fee and trading income.
This resulted in total income rising 30 per cent on year to S$3.5 billion.
Fee income fell 10 per cent on year, largely due to weaker wealth, brokerage and fund management fees amid continued global risk-off investment sentiments.
But Wong noted that the bank continued to have strong net new money inflows, which were S$6 billion in the quarter.
In 2023, there were more net new money inflows in deposits, particularly fixed deposits, as investment sentiments remained weak, she said.
Deposits grew 7 per cent on year. The bank&rsquo s current and savings account ratio stood at 45.3 per cent for the second quarter, down from Q1&rsquo s 47.1 per cent.
Nevertheless, Wong expects net new money inflows to result in a wider asset under management base for its wealth management segment, which should be able to generate more fee income as the market turns more favourable.
&ldquo We welcome the net new money because it&rsquo s always good to have more business and new customers. But hopefully, investment sentiments will increase and interest rates stabilise&hellip then customers can begin to put money into action,&rdquo she said.
Total allowances were S$252 million for Q2 &ndash comprising S$200 million for non-impaired assets and S$52 million for impaired assets &ndash even as the bank&rsquo s non-performing loans ratio fell to 1.1 per cent, from 1.3 per cent the previous year.
In comparison, total allowances were S$72 million in the same period a year earlier, and S$110 million in the first quarter of 2023.
Goh noted that general allowances were set aside for changes in risk profiles, macroeconomic variables updates and management overlays, but added that this was part of the bank&rsquo s consistent prudent approach.
This resulted in OCBC&rsquo s credit costs to stand at 31 basis points for the quarter, up from 12 basis points in the prior quarter. As at June 2023, its non-performing assets coverage ratio rose to 131 per cent, from 121 per cent as at March 2023.
As for loan growth, the bank kept its low-to-mid single-digit loan growth guidance, although Wong said it will &ldquo potentially (be) at the lower end&rdquo .
As at end-June, customer loans were up 2 per cent on a constant currency basis to S$297 billion, driven by growth in housing and corporate loans mainly in Singapore, Australia, the US and the UK.
Wong said the bank still sees loan growth, with opportunities in the areas of energy, power and utilities inflation-resilient assets such as purpose-built student accommodations and hospitality as well as technology and digital infrastructure.
Annualised return on equity (ROE) was up 3.2 percentage points to 13.5 per cent for the quarter, from 10.3 per cent the year before. The bank is guiding for an ROE in the range of 14 per cent for the full year of 2023.
The lender has declared a higher interim dividend of S$0.40 per share for the period, up 43 per cent from S$0.28, to represent a payout ratio of 50 per cent of the group&rsquo s H1 net profit.
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