3Q23 Results Preview: Resilient NIM And Stable Asset Quality
Banks’ 3Q23 earnings were powered by healthy yoy growth in net interest income, modest qoq recovery in wealth management and disciplined cost containment. Asset quality and credit costs remain benign. We forecast net profit of S$2,532m for DBS (+13% yoy but -4% qoq) and S$1,726m for OCBC (+7% yoy and +1% qoq). Our top picks are OCBC (BUY/Target: S$17.65), followed by DBS (BUY/Target: S$43.95).
OCBC provides an attractive dividend yield of 6.2%. Maintain OVERWEIGHT.