OCBC

[iam802]

there is another gap resistance level at around $5.50 as well.

[iam802]

OCBC 3Q results

http://info.sgx.com/webcoranncatth.nsf/ ... penelement

Singapore, 5 November 2008 - Oversea-Chinese Banking Corporation Limited (“OCBC Bank”) today reported a net profit of S$402 million for third quarter 2008 (“3Q08”), 13% lower than a year ago.

Excluding tax refunds from both periods, core net profit fell 7% to S$396 million. The decline was largely due to increased allowances which offset growth in operating profit driven by strong net interest income.

Net allowances for the quarter amounted to S$156 million, substantially higher than the S$39 million in 3Q07. The allowances were mainly for the Group’s holdings of debt securities which suffered losses following the unprecedented upheavals in global credit markets. Core operating businesses delivered steady results, as reflected in the 5% year-on-year increase in operating profit before allowances. Net interest income grew 21%, underpinned by healthy loan growth and better interest margins. Non interest income held up well under challenging market conditions, registering a modest decline of 4%, as weaker stockbroking, wealth management and investment income were largely compensated by stronger contributions from the insurance business and other fee-based activities.

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[iam802]

From Citi.

Sell: Target Price S$4.80 – Challenging Quarters Ahead

Revised target set at 1x P/B: In line with our strategy view that Singapore's STI may head to 1500, we reset our OCBC target to S$4.80 (from S$6.00). The 3Q08 result saw higher-than-expected provisions and although managementnoted these were on one-off debt securities defaults, management expectscoming quarters to be challenging. We have trimmed our forecasts further on higher provisions, weaker non-interest income and lower margins.

2008E/10E forecasts cut another 3-5%: We trimmed earnings post the 3Q08 result, now assuming provisions rise to 59bps of loans, margin contraction of 14bps from the cycle peak, and lower non-interest income due to weaker markets related income. Our 2009/10E forecasts lie about 12-14% below Bloomberg mean consensus estimates. Past downturns suggest that bank consensus earnings can fall 30-40% from peak in a recession. We have not cutour DPS forecast — we view that the bank could elect to maintain DPS levels to signal that capital position (tier-1 ratio 14.4%) remains strong.

3Q08 CEO views: There are some difficult quarters ahead, and this may be a more protracted downturn. But OCBC goes into this with a strong balance sheet and capital position, and management views it as unlikely that NPLs would return to the 8-9% level of the Asian Crisis. On Marina Bay Sands managementreiterated that the project is ring-fenced from the finances of the parent investor, and that the loan-to-value ratio of the development is low. The key concern is whether the parent investor can commit additional equity into the project as the loan is drawn down, but in that event another equity investor could be sought.

( 802 : another equity investor ??...must be the invisible hand )

[millionairemind]

Singapore
November 6, 2008, 10.42 am (Singapore time)

Credit Suisse cuts OCBC's target to $5 a share from $8

By ANGELA TAN

SINGAPORE - Credit Suisse said it is keeping a neutral call on OCBC Bank following the group's latest performance results released on Wednesday.

However, the research house is cutting the target price for the bank to $5 a share, down from $8 previously.

Credit Suisse has also lowered its profit forecast for the local bank due partly to increasing loan loss provisions.

OCBC is trading around $5.02 a piece, down 26 cents, around 10.30 am on Thursday

[winston]

I think that it would be very difficult for a Chinese bank to do Islamic Banking business. Having said that, they did manage to get RM3.7b of Islamic banking assets in Malaysia and they did use OCBC in their branding..

====================================


OCBC eyes Brunei, Jakarta and S'pore for sharia growth

KUALA LUMPUR - OCBC, Singapore's No 3 bank, will expand its Islamic business in Brunei, Indonesia and Singapore, which it sees as the fastest growing Asian sharia finance markets, its Malaysian unit said on Tuesday.

The bank will use Malaysia as a springboard to tap demand for Islamic products in these countries, OCBC Bank (Malaysia) chief executive Jeffrey Chew said.

Demand in Brunei and Singapore would be driven by the Islamic treasury business while Indonesia's large Muslim population provided a large consumer market, he said.

'We do see Brunei and Jakarta probably will also move quite quickly in the next couple of years,' Mr Chew told reporters at the launch of OCBC Malaysia's Islamic subsidiary.

'We believe that Islamic banking on the wholesale side for Singapore will also take off over time as well.'

The Islamic banking market has expanded beyond the traditional centres of Middle East and Malaysia as lenders seek new sources of growth and a larger share of Gulf oil earnings.

Indonesia has passed a banking law to encourage foreigners to set up sharia banks and the government plans to sell its first global Islamic bond in an effort to spur growth of its nascent sharia market.

Singapore has also jumped into the race to lure Islamic investments, with a 5 per cent concessionary tax rate on income derived from sharia-compliant fund management, lending and insurance.

The tiny oil-rich sultanate of Brunei has been issuing Islamic bonds to capitalise on rising demand for sharia assets.

OCBC Malaysia said its Islamic subsidiary, OCBC Al-Amin, would open five branches by 2009, three of which would be in the area around the capital Kuala Lumpur.

The Islamic subsidiary will start operations on Dec 1 and is licensed to offer the full range of sharia-compliant universal banking services including Islamic hire-purchase and sharia-compliant corporate finance activities.

OCBC Bank's Islamic assets stood at RM3.7 billion (US$1.04 billion) as at Dec 31, 2007. -- REUTERS

[iam802]

OCBC trying to break resistant at around 5.47 - 5.48 currently.

[iam802]

resisted twice.

[millionairemind]

If you sell out on news that is not available to the public, isn't this "insider trading"??? how come nobody's going to jail for this??

OCBC hits back at Soh's 'insider' charge
It says allegation just aims to scandalise and embarrass rather than to introduce any true or relevant pleading

By CHEW XIANG

OCBC Securities, benefitting from inside knowledge, sold off 101 million Jade Technologies shares in early April - just days before a takeover bid for the company collapsed - according to investor Anthony Soh.

OCBC's corporate finance team was then acting for him in a $117 million bid for the Catalist-listed company. Dr Soh alleged that the bank, knowing that the bid would likely not succeed, caused its brokerage arm to sell the shares on the open market on April 1, which 'precipitated the demise of the offer', according to court documents filed last month in the High Court here. He did not say if OCBC owned the shares, or was selling them on behalf of clients.

In a legal response filed yesterday, OCBC denied the charge and said the allegation was made to 'scandalise and embarrass OCBC rather than to introduce any true or relevant pleading'. It added that it reserved the right to strike out the relevant paragraphs, and denied that it was to blame for the collapse of the takeover.

Last November, the bank sued Dr Soh for allegedly misleading them into acting for him to mount a takeover of the Catalist-listed company in March last year.

In its statement of claims, OCBC said then that Dr Soh had 'no intention of making a genuine takeover of Jade'. The offer was instead a scheme 'devised to support or ramp up the price of Jade shares' and had been launched 'on a completely false basis as to the level of (his) shareholdings in Jade and the source of funds for the completion of the offer'.

In Dr Soh's defence and counterclaim, he argued that 'had it not been for gross neglect and/or breaches of its contractual obligation . . . and/or breaches of the takeover code by (OCBC), the offer would not have been made'.

The convoluted saga began in February, when Dr Soh launched an offer for Jade at 22.5 cents a share for the shares he did not then own, valuing the company at about $117 million. OCBC, as his financial adviser, guaranteed that he had the funds to go through with full acceptances of the offer and declared then that Dr Soh owned about 46 per cent of the company.

It later emerged that Dr Soh had pledged a substantial portion of his Jade shares to an Australian brokerage, Opes Prime, as margin for loans. When Opes collapsed late in March, its creditor Merrill Lynch seized the Jade shares and sold about 95 million of them on Apr 1 - the same day, allegedly, as OCBC Securities.

The next day, OCBC's corporate finance team discharged itself. Trading in the stock was halted that day and Dr Soh eventually withdrew the offer on Apr 5.

OCBC on Apr 9 reported the matter to the Commercial Affairs Department , which is still investigating. The bank said later that Dr Soh had provided it with forged documents as proof of funds, in particular, letters of guarantee for US$100 million from Standard Chartered Bank in Jakarta.

Dr Soh is claiming that an associate, Abdul Rahman bin Maarip, a Malaysian, was responsible for securing financing for the bid.

In October, the Securities Industry Council, the takeovers and mergers watchdog, censured Dr Soh for 'multiple and serious breaches' of the non-statutory takeovers code. It said he was 'far too casual' in approaching his obligations as an offeror.

OCBC too was censured for 'serious lapses' which led to 'multiple breaches of the code'. The bank voluntarily abstained from financial advisory work on takeovers for six months from Sept 1 and said it will also donate up to $1 million to 'sponsor education programmes in fraud awareness and detection'.

[kennynah]

not a good sign.... if it cant break up....it can only to turn around and drop...

resisted twice.

[durio]

chart outdated liao .. next day followed with doji and inverted hammer
next nearest support @ 5.07 but it may just go sideways