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RHB trims OCBC target price after scam attacks but expects 'steady' 4Q21 results

Jovi Ho
Jovi Ho1/25/2022 12:35 PM GMT+08  • 3 min read
RHB trims OCBC target price after scam attacks but expects 'steady' 4Q21 results
"While describing the scam attacks as highly sophisticated, management added that OCBC’s online banking system was not hacked."
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OCBC Bank is on track to post steady 4QFY2021 results on Feb 23, say RHB Group Research analysts. Despite this, a recent phishing scam targeting OCBC Bank customers revealed heightened risks, and RHB Group Research is trimming the bank’s share price estimate.

“We expect OCBC Bank to post a net profit of $1.188 billion in 4QFY2021, with the estimated 3% q-o-q dip in earnings coming mainly from seasonally lower wealth management fees and higher operating expenses,” says RHB Group Research. “That said, underlying operations remain healthy and asset quality stable. Key share price catalyst would come from the imminent interest rate upcycle and its undemanding valuation.”

In a Jan 25 note, RHB Group Research is maintaining “buy” on OCBC Bank, but with a lowered target price of $14.80 from $15.10 previously. The new target price represents a 20% upside and 4% yield.

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