SG Morning Highlights | OCBC Misses Q4 Profit Expectations, Anticipates Lower Interest Rates Ahead

Singapore shares opened lower on Wednesday. The $FTSE Singapore Straits Time Index(.STI.SG)$ rose 0.28 percent to 3,148.90 as at 9.05 am.

$OCBC Bank(O39.SG)$: OCBC's net profit for Q4 2023 rose 12% to S$1.62 billion from S$1.44 billion a year earlier, due to a 2% increase in operating profit and lower allowances. However, the figure fell short of the S$1.72 billion estimate based on one analyst polled by Bloomberg. Net interest income was up 3% to S$2.46 billion from a year ago as average assets grew 4%. Non-interest income rose 25% to S$811 million, with net fee income increasing 16% due to higher fees from wealth management, credit card, and loan-related activities. The bank's non-performing loan ratio as of Dec 31, 2023, was 1%, down 0.2 percentage point from the prior year. The bank declared a final dividend of S$0.42 per share, bringing its total dividend for the full year to S$0.82 per share, up 21% from S$0.68 the prior year.

$UOL(U14.SG)$: UOL Group has reported a 373.9% leap in net profit to $572.7 million for its fiscal second half ended Dec 31, 2023, driven by a $442.3 million gain from the sale of a wholly owned subsidiary that held Parkroyal on Kitchener Road. However, before fair value and other gains, the group's half-year profit was down 12% to $145.5 million from $164.5 million in the year-ago period. The full-year profit was up 43.9% to $707.7 million versus $491.9 million in the previous year. The board has proposed a special dividend of $0.05 per share on top of a first and final dividend of $0.15 per share. The group's second-half revenue was down 21.1% to $1.3 billion, with takings from property development tumbling by 45%, partially offset by higher revenue recognition from AMO Residence and The Watergardens at Canberra. Revenue from hotel operations rose by 21%, while second-half investment income grew by 42% and finance income grew by 9%.