OCBC FY2025 Results Review: Is the 99-Cent Dividend Safe Amidst NIM Compression? | 🦖EP1448

The Investing Iguana
02-25

OCBC FY2025 Results Review: Is the 99-Cent Dividend Safe Amidst NIM Compression? | 🦖EP1448

I have been watching OCBC's numbers for the past 48 hours and something in the detail does not sit right with me.

The headline total income of S$14.6 billion looks solid. Record income is record income. But net profit slipped 2% and the Net Interest Margin dropped 29 basis points to 1.91%. That gap between the headline and the underlying trend is exactly where the forensic work starts.

The yield spread on OCBC at current prices sits at around 90 basis points above the T-bill rate. In my framework, that is below the 150 basis point minimum I require before accepting equity risk with retirement capital. That is the number most people are not looking at.

If you hold OCBC in your CPF Investment Scheme or SRS account as a core dividend position — this video is specifically for you.

All the numbers and the full methodology are in the video below.

📺 YouTube: https://youtu.be/qQmXRKB0zgE

📩 Substack: https://open.substack.com/pub/investingiguana/p/ocbc-fy2025-deep-dive-why-net-profit?r=5enmf1&utm_campaign=post&utm_medium=web&showWelcomeOnShare=true

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Comments

  • chaicka
    02-25
    chaicka
    Love the statement ‘gap between a smart entry and becoming someone else’s exit liquidity = cost of informational lag’. IMHO, Wealth Management performance seen in DBS and OCBC is a volatile factor and obviously, due largely to flood of foreign capital seeking safer haven as reported by media too. History shows that foreign capital may come and may leave too. How much stays is unpredictable. In short, bubble still exists within local banks, juz waiting for right trigger to pop. 😁
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