OCBC share price in horror show
Will OCBC share price sink or swim? On 8 May 2020, OCBC announced a set of poor Q1 FY2020 business update that saw the number 2 bank in Singapore recording the worst financial performance among the three local banks. While COVID-19 pandemic had been cited by OCBC CEO as the culprit for the subpar performance, investors must be wondering how on earth did OCBC manage to fare so badly against the other two banks.
On a year-on-year basis, net profit plunged 43% to reach an abysmal $698 million. This is the lowest as compared to DBS ($1.17 billion) and UOB ($855 million). OCBC’s decline was also the biggest among the three local banks. Against this backdrop, OCBC share price should be sluggish for the foreseeable future.
Upon examining the business update, I noted two factors that led to the steep decline in net profit First, contributions from Great Eastern Holdings collapsed 94% to reach a low of $18 million, vis-à-vis the $290 million profit …