OCBC: Weak growth made worse by GEH, currencies: CIMB
- 1Q16 net profit of S$856m, 7%/5% below our/consensus expectation.
- Disappointments include negative loan growth (due to currencies) and falling non NII, further made worse by bad performance at Great Eastern Holdings.
- NPL rose 0.1%, provisioning rises slightly; these are not alarming.
- 1Q16 ROE of 10.1% is bad (4Q: 11.5%), but it largely reflects GEH.
- Downgrade from Add to Hold; with a lower TP of $8.80.
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