Brokers' take

OCBC Bank | Hold (downgraded) June 25 close: S$11.25 Target price: S$11.50 DBS Equity Research, June 25

We remain cautious over OCBC's non-performing assets (NPA) coverage which at 78 per cent remains the lowest amongst its peers, even after additional provisions written in Q1.

Even as OCBC is likely to see modest net interest margin expansion in 2Q19, we are less hopeful that mark-to-market gains and strong net trading income seen in the first quarter can be sustained.