πππEven though $ocbc bank(O39.SI)$ missed Analysts' expectations , it is fundamentally a profitable bank with its FY 24 Group Net Profit up 8%. OCBC has been consistent in rewarding its shareholders with great dividends. The current dividend yield is 5%.
OCBC is still the 2nd largest bank in Singapore and the No. 2 stock in the STI ETF $STI ETF(ES3.SI)$ by market capitalisation.
I believe that OCBC's share price will recover and continue its upward growth trajectory in the long term. It is time in the market that counts, not timing the market.
@Tiger_SG @TigerStars @TigerClub @CaptainTiger
OCBC Profit Misses, DBS Layoffs: Whatβs the Outlook for 3 Major Banks?
@Tiger_SGοΌ$ocbc bank(O39.SI)$ dropped 2% today following the release of its earnings report. While OCBC remains a top performer, its rivals performed better. For the full year 2024, the bank's net profit reached S$7.59 billion, an 8% yoy increase. However, Q4 net profit was S$1.69 billion, a 4% yoy increase, which missed analystsβ expectations of S$1.81 billion (a 6.6% miss), making OCBC the only one of Singaporeβs three major banks to fall short of expectations. This stands in stark contrast to $DBS Group Holdings(D05.SI)$ (+10% met expectations) and $UOB(U11.SI)$ (+9% exceeded expectations). For the full year, net interest income hit a record high of S$9.76 billion (+5% YoY), but Q4 net interest margin (NIM) dropped from 2.29% to 2.15% (-14bps YoY), primarily due to rising deposit costs and competitive loan pricing. Guidance Is Less Optimistic Management has guided that NIM will further decline to 2% in 2025, significantly lower than 2024's 2.2%. In contrast, DBS's NIM rose to 2.15% in Q4. OCBC also projected mid-single-digit loan growth in 2025, compared to 8% loan growth in 2024. Despite announcing a S$2.5 billion capital return, the details were less attractive compared to its competitors. OCBC: Through special dividends (10% of 2024-2025 net profit) and share buybacks, the total payout ratio is 60% (including ordinary dividend of 85 cents per share and special dividend of 16 cents per share). DBS: In addition to the S$3 billion share buyback in Q3, the bank also introduced a special bonus of S$1,000 for all employees (except executives) and a new dividend policy. UOB: The bank announced a S$3 billion capital return plan, including S$2 billion in share buybacks. Among the major banks, DBS had a relatively strong performance this earnings season. However, in an interview yesterday, DBS CEO Piyush Gupta, who is set to step down, mentioned that DBS will cut around 4,000 contract and temporary workers over the next three years, with AI taking over their roles. Does this indicate that DBS is also focusing on cost-cutting and efficiency? Questions for tigers: How do you view the earnings of the three major banks? Which bank is worth buying now? Will AI replacing human workers become a major trend in the coming years? Leave your comments or post directly in the topic to win tiger coins~
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