Thursday, July 21, 2011


OCBC: Deutsche maintains Buy, with TP $10.40. Note that solid underlying trends to be maintained in 2Q11 result (4 Aug). Forecast net profit of $606m, down 4% QoQ but 20% ahead of the prior corresponding period.

Given strong system trends, expect robust loan growth to continue which should result in solid net interest income growth despite ongoing NIM pressures. See potential for OCBC to rally further on the back of a good 2Q11 result. Continue to view OCBC as the quality play in the sector, with superior credit quality and CASA deposit growth trends as well as the best wealth mgt strategy among peers.

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