OCBC

OCBC: UOB Kay Hian note that results saw a positive surprise from life insurance and trading income. Overall, house maintains Hold with $9.35 TP. OCBC reported net profit of $832m (+40% qoq, +32% yoy) for 1Q12, above house forecast of $562m and consensus estimate of $634m. Loans contracted by a marginal 0.4% qoq. Loans expanded 2.1% qoq for SG but contracted for Msia, Indo and China. Net interest margin (NIM) expanded marginally by 1bp to 1.86% driven mainly by higher asset yields. Fee income expanded 7% qoq to $257m driven by wealth management (+33% qoq). Life insurance business contributed strongly with income of $221m, driven by wealth mgt fees, gains from investment securities and higher dividend income. Net trading income was surprisingly strong at $160m, doubling on a yoy basis. OCBC also recognised gain of $56m after divesting a property in Melbourne.