Oversea-Chinese Banking Full Year 2024 Earnings: EPS Misses Expectations

Oversea-Chinese Banking (SGX:O39) Full Year 2024 Results

Key Financial Results

• Revenue: S$13.8b (up 7.9% from FY 2023).
• Net income: S$7.52b (up 8.2% from FY 2023).
• Profit margin: 55% (in line with FY 2023).
• EPS: S$1.67 (up from S$1.55 in FY 2023).

O39 Banking Performance Indicators

• Net interest margin (NIM): 2.20% (down from 2.28% in FY 2023).
• Cost-to-income ratio: 39.7% (up from 38.7% in FY 2023).
• Non-performing loans: 0.89% (down from 0.95% in FY 2023).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Oversea-Chinese Banking EPS Misses Expectations

Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 2.2%.

The primary driver behind last 12 months revenue was the Global Wholesale Banking segment contributing a total revenue of S$5.26b (38% of total revenue). The largest operating expense was General & Administrative costs, amounting to S$3.84b (61% of total expenses). Explore how O39's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 4.5% p.a. on average during the next 3 years, compared to a 6.8% growth forecast for the Banks industry in Asia.

Performance of the market in Singapore.

The company's shares are up 1.9% from a week ago.

Risk Analysis

We don't want to rain on the parade too much, but we did also find 1 warning sign for Oversea-Chinese Banking that you need to be mindful of.

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