OCBC

OCBC: The bank updated that its wealth management business has been recording steady performance, with wealth management income and assets under management (AUM) growing at double-digit pace over the last five years.

Wealth management income is expected to reach a record $2.6b this year and contribute to 30% of the group’s income in 2015 compared to 23% in 2011, while total AUM (including Bank of Singapore, Lion Global Investors) has jumped by more than 60% since 2011 to $195b as at end-Jun ’15.

Going forward, OCBC is confident that its wealth management business will continue to post double-digit growth, with China expected to remain as a key driver, as it liberalises its financial sector and frees up the yuan.

OCBC believes the key difference between itself and other big private banks lies in its vast network and ability to serve wealthy businesspeople in parts of Asia which are being neglected by its competitors.

At the current price, OCBC trades at 1.2x P/B versus DBS’ 1.1x and UOB’s 1.1x.

Maybank-KE has a Sell rating on OCBC with a TP of $8.50.