OCBC

OCBC: While BNP expects OCBC’s loan growth to be ahead of industry average, given 1) strong growth momentum in the Greater China Region, and 2) a relatively lower household credit exposure (compared to UOB). BNP expects OCBC’s loan growth at 14% in 2014. The house also expects non-interest income to growth at 15% y/y in 2014, driven by wealth management and insurance income. 3Q13 Bank of Singapore’s AUM grew 15% y/y to US$45b, representing a significant source of US$ funding for OCBC. Investment income rom insurance should also grow with a rising long-term Asean yield curve. With regards to the above, BNP prefers OCBC to UOB. Ratings as below: OCBC: Buy, raised TP to $12.40 (from $12.30) UOB: Hold, TP at $22.00