OCBC's 3Q Profit Likely Declined Sequentially Due to Insurance Business

0906 GMT - Oversea-Chinese Banking Corp.'s 3Q net profit likely declined sequentially due to the Singapore lender's insurance business, say CGS International analysts in a note. Long-term yields likely affected the contribution from insurance subsidiary Great Eastern, as the rise in long-term U.S. yields likely translated to mark-to-market losses for fixed-income assets and mitigated any mark-to-market gains from equities. Net interest income is also likely to be flat on quarter, as potentially robust loan growth offsets any net interest margin compression, they add. Still, CGSI raises its target price to 30.40 Singapore dollars from S$29.80 after rolling forward valuations. The brokerage reiterates its hold rating. Shares drop 0.3% to S$28.92.