OCBC: 1Q10 GEH contributed $146m (22%) of OCBC’s group profit of $676m. Hence, the 59% drop in GEH’s 2Q earnings could impair OCBC’s 2Q profit by ~13%. Further, OCBC also booked $232m of trading gains from treasury ops and investment securities in 1Q, which is unlikely to be repeated given the more difficult market conditions in 2Q, Citigroup is forecasting OCBC to post a 2Q profit (results due Aug 2) of $558m (down 17.5% qoq) largely on an expected fall in other income.
OCBC closed at $9.10, just shy of its post-financial crisis high of $9.20.
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