OCBC

OCBC: Citi maintains Buy with $10.03 TP. Note that OCBC remains house top pick among SG banks. Despite a better-than-expected 1Q result maintain our 14% above-consensus 2012E net profit forecast of S$2.68bn, mindful that some of the strong trading and insurance non-par fund profit performance may not repeat should market conditions become less benign. Despite a slower start to the year, OCBC maintained guidance of low teens loan growth for 2012 and that the current NIMs of 1.86% could be maintained despite some pressures regionally. Mgt reiterated that it saw now signs of systemic asset quality concerns despite a small uptick in NPLs (NPL ratio still 1.0%, coverage120%). $10.03 TP is based on 1.56x 2012E P/B vs 12.4% ROE, 13x PER.