Citi maintains ‘neutral’ call on OCBC after Great Eastern’s proposed acquisitions

Felicia Tan2023-10-03

To analyst Tan Yong Hong, the deal is likely to be immaterial to GEH’s financials but will be capital accretive for AMMB.Citi Research analyst Tan Yong Hong is remaining “neutral” on Oversea-Chinese ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2372584117?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2023-10-03 11:48","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2372584117","market":"other","top_or_hot":-1,"title":"Citi maintains ‘neutral’ call on OCBC after Great Eastern’s proposed acquisitions","media":"Felicia Tan","content":"<div>\n<p>To analyst Tan Yong Hong, the deal is likely to be immaterial to GEH’s financials but will be capital accretive for AMMB.Citi Research analyst Tan Yong Hong is remaining “neutral” on Oversea-Chinese ...</p>\n\n<a href=\"https://www.theedgesingapore.com/capital/brokers-calls/citi-maintains-neutral-call-ocbc-after-great-easterns-proposed-acquisitions?utm_source=Blog&utm_medium=RSS&utm_campaign=Tiger_Brokers_app_RSS\">Source Link</a>\n\n</div>\n","source":"edge_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Citi maintains ‘neutral’ call on OCBC after Great Eastern’s proposed acquisitions</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCiti maintains ‘neutral’ call on OCBC after Great Eastern’s proposed acquisitions\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-10-03 11:48 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.theedgesingapore.com/capital/brokers-calls/citi-maintains-neutral-call-ocbc-after-great-easterns-proposed-acquisitions?utm_source=Blog&utm_medium=RSS&utm_campaign=Tiger_Brokers_app_RSS><strong>Felicia Tan</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>To analyst Tan Yong Hong, the deal is likely to be immaterial to GEH’s financials but will be capital accretive for AMMB.Citi Research analyst Tan Yong Hong is remaining “neutral” on Oversea-Chinese ...</p>\n\n<a href=\"https://www.theedgesingapore.com/capital/brokers-calls/citi-maintains-neutral-call-ocbc-after-great-easterns-proposed-acquisitions?utm_source=Blog&utm_medium=RSS&utm_campaign=Tiger_Brokers_app_RSS\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"SG9999016042.SGD","symbol_name":"Schroder Singapore Trust A Acc SGD","start_time":0,"source_url":"https://www.theedgesingapore.com/capital/brokers-calls/citi-maintains-neutral-call-ocbc-after-great-easterns-proposed-acquisitions?utm_source=Blog&utm_medium=RSS&utm_campaign=Tiger_Brokers_app_RSS","article_id":"2372584117","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2372584117","pubTimestamp":1696304923,"sourceInfo":{"source_id":"edge_highlight","name":"Edge"},"weMediaInfo":null,"summary":"To analyst Tan Yong Hong, the deal is likely to be immaterial to GEH’s financials but will be capital accretive for AMMB.","collect":0,"end_time":0,"defaultTopTitle":"theedgesingapore.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"SG9999016042.SGD":"Schroder Singapore Trust A Acc SGD","SG9999013478.USD":"利安新加坡股息基金","BK4585":"ETF&股票定投概念","LU0264606111.USD":"Janus Henderson Horizon Asian Dividend Income A2 USD","LU0251143029.SGD":"Fidelity ASEAN A-SGD","BK4084":"特种房地产投资信托","SGXZ58947870.SGD":"LIONGLOBAL SINGAPORE DIVIDEND EQUITY (SGDHDG) INC","LU0532188223.SGD":"JPMorgan Funds - ASEAN Equity A (acc) SGD","BK6516":"银行与投资服务概念","LU1130305938.SGD":"Schroder ISF Asian Dividend Maximiser A Dis SGD-H","LU1048588211.SGD":"Blackrock Asian Dragon A2 SGD-H","SG9999006266.SGD":"MANULIFE SINGAPORE EQUITY \"A\" (SGD) ACC","LU0072462343.USD":"贝莱德亚洲巨龙基金","SG9999014302.SGD":"RHB Singapore Income Fund SGD","LU1048596156.SGD":"Blackrock Asian Growth Leaders A2 SGD-H","SG9999008742.SGD":"Eastspring Investments Unit Trusts - Singapore ASEAN Equity SGD","BK4581":"高盛持仓","LU0955669360.SGD":"Schroder ISF Asian Dividend Maximiser A Dis SGD","LU0181495838.USD":"施罗德新兴亚洲A Acc","SG9999002414.USD":"LIONGLOBAL SINGAPORE TRUST (USD) ACC","BK4588":"碎股","LU0048573645.USD":"富达东盟基金","EML":"Eastern Company ","BK6112":"综合性银行","SG9999000343.SGD":"Schroder Singapore Trust A Dis SGD","LU0572939691.SGD":"Janus Henderson Horizon Asian Dividend Income A2 SGD","SG9999000327.SGD":"Schroder Asian Growth A Dis SGD","SG9999002406.SGD":"利安新加坡信托基金","BK4554":"元宇宙及AR概念","SG9999005177.SGD":"Legg Mason Martin Currie - Southeast Asia Trust A Acc SGD","AMT":"美国电塔","SG9999001135.SGD":"United ASEAN Fund SGD","SG9999003826.SGD":"日兴资管新加坡股息基金 SGD","SG9999002604.SGD":"LionGlobal Singapore/Malaysia SGD","BK4219":"电信塔房地产信托","SG9999013460.SGD":"LionGlobal Singapore Dividend Equity Fund SGD","SG9999001127.SGD":"United Singapore Growth Fund SGD","SG9999004360.SGD":"Nikko AM Shenton Thrift Fund SGD","BK4534":"瑞士信贷持仓","BK6523":"ESG概念","SG9999002679.SGD":"LionGlobal Singapore Balanced SGD","LU0572940350.SGD":"Janus Henderson Horizon Asian Dividend Income A3 SGD","SG9999000475.SGD":"Aberdeen Standard Singapore Equity SGD","SG9999013486.USD":"LIONGLOBAL SINGAPORE DIVIDEND EQUITY (USD) INC A","O39.SI":"华侨银行","SG9999001689.USD":"施罗德亚洲成长股票","BK4161":"工业机械","LU0821914370.USD":"贝莱德亚洲成长领袖A2","LU0210637038.USD":"HSBC GIF THAI EQUITY \"AD\" INC"},"translate_title":"在大东方提出收购后，花旗对华侨银行保持“中性”看涨期权","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AMT":1,"O39.SI":1,"EML":1,"GEH":1},"content_text":"To analyst Tan Yong Hong, the deal is likely to be immaterial to GEH’s financials but will be capital accretive for AMMB.Citi Research analyst Tan Yong Hong is remaining “neutral” on Oversea-Chinese Banking Corporation (OCBC) after its 88.4%-owned insurance subsidiary, Great Eastern Holdings G07 (GEH) announced that it was acquiring AMMB’s AmMetLife Insurance Berhad (AML) and AmMetLife Takaful Berhad (AMT) for RM1.12 billion ($325 million).\nTo Tan, the deal is likely to be immaterial to GEH’s financials but will be capital accretive for AMMB.\nAccording to AMMB’s annual report for the FY2023 ended March, AML contributed RM76.1 million to its overall profit after tax (PAT) for the 12-month period. This is in comparison to GEH’s PAT of $786.9 million and retained earnings of $10.1 billion for the FY2022 ended Dec 31, 2022.\nHowever, the acquisition could enhance GEH’s distribution channel in Malaysia and give it access to AML’s pool of insurance agents in the country.\nMeanwhile, the acquisition by GEH could lift AMMB’s common equity tier 1 ratio (CET1 ratio) by 0.9 percentage points or 90 basis points (bps).\n“Under Pillar-3 disclosures, AMMB group’s consolidated capital ratio exclude investment in insurance entities and joint ventures (i.e. deducted from regulatory capital). Based on latest 1QFY releases, “investments in capital instruments of unconsolidated financial and insurance/Takaful entities” is RM1.33 billion (1.09% of risk-weighted assets or RWA),” says Tan in his Oct 2 report.\n“Using a simple pro-rating of AML relative cost as percentage to investment in associate/joint venture (JV), AMMB’s capital could be lifted by a further 45 bps. Together with cash received RM561 million (46 bps of RWA), the capital accretion for divesting a JV could be meaningful at 90bps (1QFY2024 CET1 ratio: 12.588% excluding transitory arrangements),” he adds.\nIn his report, Tan has also kept his target price on OCBC at $12.70, which implies a P/B of 1.0x based on the bank’s FY2023 and FY2024 earnings estimates.\nShares in OCBC closed flat at $12.80 while shares in GEH closed 3 cents higher or 0.17% up at $18.03 on Oct 3.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.0","shortVersion":"4.29.0","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2372584117"}