OCBC Profit Misses, DBS Layoffs: What’s the Outlook for 3 Major Banks?
$ocbc bank(O39.SI)$ dropped 2% today following the release of its earnings report. While OCBC remains a top performer, its rivals performed better.
For the full year 2024, the bank's net profit reached S$7.59 billion, an 8% yoy increase. However, Q4 net profit was S$1.69 billion, a 4% yoy increase, which missed analysts’ expectations of S$1.81 billion (a 6.6% miss), making OCBC the only one of Singapore’s three major banks to fall short of expectations.
This stands in stark contrast to $DBS Group Holdings(D05.SI)$ (+10% met expectations) and $UOB(U11.SI)$ (+9% exceeded expectations).
For the full year, net interest income hit a record high of S$9.76 billion (+5% YoY), but Q4 net interest margin (NIM) dropped from 2.29% to 2.15% (-14bps YoY), primarily due to rising deposit costs and competitive loan pricing.
Guidance Is Less Optimistic
Management has guided that NIM will further decline to 2% in 2025, significantly lower than 2024's 2.2%. In contrast, DBS's NIM rose to 2.15% in Q4.
OCBC also projected mid-single-digit loan growth in 2025, compared to 8% loan growth in 2024.
Despite announcing a S$2.5 billion capital return, the details were less attractive compared to its competitors.
OCBC: Through special dividends (10% of 2024-2025 net profit) and share buybacks, the total payout ratio is 60% (including ordinary dividend of 85 cents per share and special dividend of 16 cents per share).
DBS: In addition to the S$3 billion share buyback in Q3, the bank also introduced a special bonus of S$1,000 for all employees (except executives) and a new dividend policy.
UOB: The bank announced a S$3 billion capital return plan, including S$2 billion in share buybacks.
Among the major banks, DBS had a relatively strong performance this earnings season.
However, in an interview yesterday, DBS CEO Piyush Gupta, who is set to step down, mentioned that DBS will cut around 4,000 contract and temporary workers over the next three years, with AI taking over their roles.
Does this indicate that DBS is also focusing on cost-cutting and efficiency?
Questions for tigers:
How do you view the earnings of the three major banks?
Which bank is worth buying now?
Will AI replacing human workers become a major trend in the coming years?
Leave your comments or post directly in the topic to win tiger coins~
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🌟🌟🌟Even though $ocbc bank(O39.SI)$
OCBC is still the 2nd largest bank in Singapore and the No. 2 stock in the STI ETF $STI ETF(ES3.SI)$
I believe that OCBC's share price will recover and continue its upward growth trajectory in the long term. It is time in the market that counts, not timing the market.
@Tiger_SG @TigerStars @TigerClub @CaptainTiger
$ocbc bank(O39.SI)$ dropped 2% today following the release of its earnings report. While OCBC remains a top performer, its rivals performed better.
Despite announcing a S$2.5 billion capital return, the details were less attractive compared to its competitors.
@Shyon @Aqa @SPACE ROCKET @TigerGPT @GoodLife99 @Universe宇宙 @LMSunshine @koolgal @rL @HelenJanet
How do you view the earnings of the three major banks?
Which bank is worth buying now?
Will AI replacing human workers become a major trend in the coming years?
Leave your comments or post directly in the topic to win tiger coins~
@Success88 @Fenger1188 @Universe宇宙 @rL @Wayneqq @HelenJanet @DiAngel @SPOT_ON @Kaixiang come join
从目前的情况来看，星展银行依然是值得关注的选择。它在数字化转型和亚洲市场拓展方面具有独特优势，其盈利模式更为多元化，且财务状况稳健。此外，星展银行在金融科技领域的布局也增强了它对未来增长的驱动力。相比之下，大华银行和华侨银行虽然也有不错的表现，但从市场的创新性和长期增长潜力来看，星展的优势稍微更大一些。
至于人工智能的趋势，我确实认为AI将成为未来几年的重要趋势，尤其是在重复性和数据处理密集型的行业中，AI能有效替代人类完成大部分工作。这不仅能够提高效率，还能降低成本。然而，AI也无法完全替代那些需要创造性思维和人际互动的职业，比如艺术创作、心理咨询等。因此，AI替代工作将主要集中在一些低技能的岗位，而高技能、需要人类情感参与的岗位仍然有其独特的价值。
DBS on the other hand appears to be the much stronger performing asset. Furthermore, them looking ahead to the future and recognizing the AI trend throughout the world and reacting to it, is a good look for DBS.
I think DBS is the best play here, probably followed by UOB and OCBC being a distant third.
$ocbc bank(O39.SI)$ $DBS Group Holdings(D05.SI)$ $UOB(U11.SI)$
I was really anticipating OCBC to do well but its dividend was really underwhelming.
So I would say DBS is the winner for the first half of 2025
I don’t think AI will be able to replace human workers. In my department, we were told to use copilot to summarise our technical worker.
If AI is able to replace my work, then I will see my golden handshake