DBS’ Vickers says OCBC (O39.SG) 3Q net profit of $570 million (+13% on-quarter, +27% on-year) in line with expectations, notes that key positives were non-interest income rebound, NIM uptick, sustained strong loan growth, which surpassed expectations. 

 

House raises loan growth forecast to 26%/8%/8% for FY10/11/12 from 20%/7%/7%; ups earnings forecast by 3%-4% over FY10-12. Keeps Buy call, $10.70 target price; “we still prefer OCBC to UOB (U11.SG) for its strong growth potential in non-interest income, which could drive ROE higher. 

 

OCBC seems to be more aggressive in its regional expansion plans especially in Malaysia, Indonesia and China. 

 

Shares +1.0% at $9.32.