Don't be fooled by OCBC's 2Q12 results, warns analyst

OCBC posted overheads growth of 6% qoq on higher staff costs.

Here's more from CIMB:

2Q12 profits (S$648m) came in above our (S$580m) and consensus forecasts (S$616m), mostly on lower-than-expected loan provisions. Pre-provision operating profit (PPOP) was slightly below our estimate as revenue was in line and overheads rose higher than forecast.

Negatives: margins, trading and overheads
The key negative was a whopping 9bp margin decline (to 1.77%). We think the other two banks will show similar falls but more muted, we hope. Margins dipped on increased liquidity as monies sought safe havens. OCBC’s 2Q loans were +2.8% qoq, customer deposits +1.8% but deposits from banks were +9.3%. Other negatives: 1) overheads growth (+6% qoq) on higher staff costs, and 2) less trading than expected.

Although above estimates, it was mostly from low provisions and we do not deem it impressive.

Follow the link for more news on

OCBC Bank

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.

The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.

So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia