4Q23: Quality Earnings With Resilient Asset Quality
OCBC delivered earnings growth of 12% yoy in 4Q23 despite dismal contributions from its insurance business.
Quality of its earnings is high as loan loss coverage improved further by 12ppt qoq to 151%, its 8th consecutive quarter of sequential improvement. OCBC set aside general provisions of S$182m despite NPLs declining 17% yoy and 6% qoq. It also has the highest CET-1 CAR of 15.9%.
Maintain BUY. Target price: S$17.22. OCBC provides attractive dividend yield of 6.5% for 2024.
