OCBC

OCBC: CIMB maintains U/p with $10.09 TP. House do not like OCBC because: 1) GEH’s accounting earnings will likely stay depressed as rates rise, 2) there is no semblance of broad-based fee growth to cushion the softer WM earnings in this climate, and 3) OCBC’s credit costs will rise if Asian asset quality deteriorates. House maintain Underperform, with the de-rating catalysts of rising interest rates, poor investment appetite from private banking clients and eventually, rising credit costs. OCBC remains house least preferred Singaporean bank.