Brokers' take

Oversea-Chinese Banking Corporation | Buy Target price: S$13.52 July 19 close: S$11.25 UOB Kay Hian, July 19

We expect OCBC to register a healthy loan growth of 10 per cent year-on-year and wealth management fees to grow 20.9 per cent year-on-year with steady expansion of assets under management in Q2 FY18.

However, investors could be disappointed with an expected second consecutive quarter of flattish net interest margin (we anticipate net interest margin expansion to resume in H2 FY18) and a moderation in contribution from insurance due to a correction in the bond market.