Oversea-Chinese Banking Corp (OCBC)

Credit costs, NPLs to rise, says Maybank Kim Eng's artificial intelligence algorithm

SINGAPORE (Sept 16): On Sept 12, Maybank Kim Eng (MBKE) said in a report that it was using artificial intelligence to gauge the different metrics affecting the non-performing loans (NPLs) of local banks.

According to its analysis, the pace of non-Singapore dollar loan growth, domestic inflation and the rate of change in special-mention loans have the strongest influence in setting the direction of NPLs. In contrast, interest rates, changes to unemployment and GDP growth — variables that traditionally guide NPL forecasts — seem to have a smaller impact.

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Yanlord clinches top spot; Oxley leads in ROE, Bukit Sembawang in shareholder returns

SINGAPORE (Sept 16): The property sector, together with finance, logistics and manufacturing, is the pillar of any modern economy. Scale is critical to success, and those with the financial muscle can steadily lever up to become even bigger.

Thirteen companies qualified for the property sector of the Billion Dollar Club, each with a market value above the billion-dollar treshold. The only industry sector with a higher number of qualifying companies was real estate investment trusts — with a total of 24 qualifying companies.

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Recession fears a temporary setback, local banks should rise in long term

SINGAPORE (Sept 2): Looking beyond current global economic uncertainties, the fact remains that the stock market usually rises in the very long term. The local banks are a good example. Once proxies to GDP growth in Singapore and Malaysia, they now reflect growth in Asia as they gradually regionalise. Economies usually grow over the long term. The 30-year price charts (see Charts 1 to 3) of the three local banks show that their prices have risen over a 30-year period, despite the two occasions on which there were serious declines — during the Asian and global financial crises.

Singapore expects new digital banks to start by mid-2021

SINGAPORE (Aug 29): Singapore plans to award licenses for its new digital banking initiative by mid-2020, with successful applicants expected to start business a year later, its financial regulator said.

Applications must be submitted by the end of this year and the Monetary Authority of Singapore will assess them based on various criteria including growth prospects, it said in a presentation Thursday.

Is Wing Hang the wind beneath OCBC's wings?

SINGAPORE (Aug 29): Oversea-Chinese Banking Corp has gained significant franchise value across the Greater China region, having successfully integrated the operations of Wing Hang Bank after acquiring it in 2014.

In 2013, OCBC’s Greater China franchise’s AUM was US$9 billion. By 2018, this had surged fourfold to US$36 billion. The 2018 AUM per client is also 2.5 times
that in 2013, meaning OCBC has been able to attract new clients with higher net worth.

China presses ahead with GBA strategy despite trade war and slowdown

SINGAPORE (Aug 26): With or without the ongoing US-China trade war and a global economic slowdown, the Middle Kingdom continues to press ahead with its Greater Bay Area plans, which would eventually lead to the area gaining developed-market status. Banks, developers and tech companies are all on board. At least three listed companies — two in Singapore and one in Hong Kong — have articulated a GBA strategy that should reap earnings for shareholders.

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OCBC in talks with Singtel about virtual bank licence, say sources

SINGAPORE (Aug 21): Oversea-Chinese Banking Corp (OCBC) is in talks with companies including Singapore Telecommunications about seeking one of the city-state's planned virtual bank licenses, according to people familiar with the matter.

See: Singapore to offer up to five digital bank licences

Banks as yield plays, with upside from earnings growth

SINGAPORE (Aug 12): Slowing global growth and uncertainties over the escalating trade war, tech supply chain, China and Hong Kong have all taken their toll on the share prices of the three local banks — DBS Group Holdings, Oversea-Chinese Banking Corp and United Overseas Bank. Interestingly, both DBS and UOB are still ahead (see Table 1) in terms of price gains, and OCBC is unchanged since the start of the year. Of course, at one point, the banks had double-digit share-price gains, with DBS up 20% since Jan 2.

OCBC tests Indonesian mood with Permata bank bid

(Aug 15): “Do you have Jakarta’s blessing?” That’s the first question Oversea-Chinese Banking Corp CEO Samuel Tsien will be asked by investors about his plan to buy Indonesia’s PT Bank Permata.

OCBC is weighing a bid for Standard Chartered’s Indonesian bank, Bloomberg News has  reported, citing people with knowledge of the matter. Deliberations are still at an early stage and may not result in a deal. And even if they do, there’s the government to consider.

Onerous conditions for new digital bank licences enable local banks to forge ahead with digital plans

SINGAPORE (Aug 12): On June 28, the Monetary Authority of Singapore (MAS) announced that it would issue five new digital bank licences: two digital full-bank licences and three digital wholesale bank licences. Following the announcement, InstaReM, iFAST Capital and peer-to-peer (P2P) operator Validus Capital expressed interest in applying for the licences.

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