OCBC

OCBC: CLSA reckons that OCBC has limited capital progression in the near term. OCBC management has communicated that it has several levers at its disposal to lift its CET1 ratio to >12% in the next 2-3 years. Successful execution of a significant proportion of these opportunities may be out of OCBC’s control/material progress is dependent on supportive macro conditions. In addition, house calculates that at least 42-53% of the capital generation plan is likely to be back-end loaded. OCBC (Underperform; $10.10) remains CLSA's least preferred pick among the Singapore banks.