Quarter-on-quarter (q-o-q), this was 10% higher than 3QFY2020’s earnings of $1.03 billion. The quarter’s earnings was also the highest in four quarters from improved operating conditions. A final dividend of 15.9 cents per share has been proposed, bringing the total dividend for the year to 31.8 cents, representing a 39% payout of FY2020’s net profit. RHB notes that FY2020 results are 13% above its full-year forecasts, and 9% above street estimates. A key factor for the variance was lower-than-expected provisions, it adds. Similarly, PhillipCapital analyst Tay Wee Kuang has also upgraded his call on OCBC to “buy” from “neutral” with a higher target price of $13.65 form $9.68. Tay has also raised OCBC’s FY2021 earnings estimates by 19% for higher insurance and wealth-management income and lower allowances.
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