UOB announced its Q3 results this morning which gives a big hint of what is to come for the other two banks. The drop in NIM and increase in NPA is worst than expected, and if not for the loan growth segment in the Singapore that helps, it might look like a worsen Q3. OCBC is scheduled to announced its results on the 5th Nov (Tuesday morning) before the start of market trading. This is 5 reasons why I think OCBC Q3 FY19 profit results are going to fall double-digit in terms of percentage year on year. 1.) Net Interest Margin Compressed QoQ and YoY
In FY18, OCBC's Net Interest Income contributes 60% to their total revenue while Non-Interest Income contributes the rest of the other 40%, so we'll approximately use that as a gauge. Q2FY19 Net Interest Income came in at $1,588m while Q3FY18 Net Interest Income...