The_King Posted August 7, 2020 Share Posted August 7, 2020 SINGAPORE (Reuters) - Singapore's second-largest lender Oversea-Chinese Banking Corp <OCBC> reported a larger-than-expected 40% tumble in second-quarter net profit on Friday, hurt by loan-loss provisions in a pandemic-hit market and a slowdown in customer activity. The result underscored a cautious sector outlook as larger peer DBS Group <DBSM.SI> and smaller competitor United Overseas Bank <UOBH.SI> shored up allowances and cut costs to deal with the double whammy of low interest rates and weak growth. Kevin Kwek, senior analyst at Sanford C. Bernstein, said the sector's results were "not too bad" considering that the June quarter globally would "arguably be the worst quarter in history". "If they still can maintain strong capital levels, as they did, remaining profitable despite the high provisions, the view that the Singaporean banks can prevail through this severe crisis is retained," Kwek said. OCBC's net profit fell to S$730 million ($533.3 million) in April-June from S$1.2 billion a year earlier. The profit was lower than the average estimate of S$980 million of five analysts, according to data from Refinitiv. Profit however rose 5% from the first quarter. Net interest margin, a key gauge of profitability, slumped to 1.6% in the latest quarter from 1.79% a year earlier. OCBC's provisions for credit losses swelled to S$750 million in the second quarter from S$111 million a year earlier, but it joined DBS in maintaining its credit cost estimates for the two years through 2021. Banks are beefing up provisions to cope with expected bad loans as regulators ease billions of dollars in loan moratoriums over the next few months for consumers and businesses battered by the COVID-19 pandemic. "With respect to the moratorium, there is quite a bit of uncertainty," OCBC Group CEO Samuel Tsien said, adding that this related to how the programme was managed, how fast markets opened up and whether economic activity was able to pick up. "It is important for banks to defensively shore up their balance sheet and prepare for the slow recovery," he told reporters. Singapore's banking regulator asked lenders last week to cap their dividends, pummelling their shares. On Thursday, DBS's quarterly profit slumped by a fifth but was above market estimates and rose on the quarter. UOB missed analysts' estimates with a 40% fall in quarterly net profit due to lower margins and higher credit costs. 1 Link to comment Share on other sites More sharing options...
meng.huat Posted August 8, 2020 Share Posted August 8, 2020 @socrates469bc huat big big liao 1 Link to comment Share on other sites More sharing options...
socrates469bc Posted August 8, 2020 Share Posted August 8, 2020 i sold off my last ocbc tranche b4 mar sell-down. looking to buy but the valuation is not attractive. now looking at oz miners. wahahahhahahhaha 1 Link to comment Share on other sites More sharing options...
meng.huat Posted August 8, 2020 Share Posted August 8, 2020 56 minutes ago, socrates469bc said: now looking at oz miners. winnie angry with ozzies.... oz miners eat grass Link to comment Share on other sites More sharing options...
socrates469bc Posted August 8, 2020 Share Posted August 8, 2020 16 minutes ago, meng.huat said: winnie angry with ozzies.... oz miners eat grass oz miners have freight advantage and consistent quality. so winnie no choice, still have to buy from oz. Link to comment Share on other sites More sharing options...
Camper Posted August 8, 2020 Share Posted August 8, 2020 No wonder recently ocbc dbs like aggressive pushing their loans. Their property loan interest is 1.5%. Ocbc no need fire insurance. The rest need. Maybank lower interest rate at 1.3 or 1.4% if not wrong.. Local banks loan to people like us for own stay probably wont margin call. But one will never know.. Link to comment Share on other sites More sharing options...
The_King Posted August 8, 2020 Author Share Posted August 8, 2020 2 hours ago, Camper said: No wonder recently ocbc dbs like aggressive pushing their loans. Their property loan interest is 1.5%. Ocbc no need fire insurance. The rest need. Maybank lower interest rate at 1.3 or 1.4% if not wrong.. Local banks loan to people like us for own stay probably wont margin call. But one will never know.. Loans is for dkgk Link to comment Share on other sites More sharing options...
Camper Posted August 8, 2020 Share Posted August 8, 2020 5 minutes ago, The_King said: Loans is for dkgk Gib chance ah towkay.. we dont have hundreds of thousands dollars in cpf to put into house 😞 Link to comment Share on other sites More sharing options...
The_King Posted August 8, 2020 Author Share Posted August 8, 2020 7 minutes ago, Camper said: Gib chance ah towkay.. we dont have hundreds of thousands dollars in cpf to put into house 😞 Me Also don't have, Heng I listen to my gian Peng brain and brought the smallest 2 room instead of the bigger 2 room else my loan still got 10yr to pay But I make the correct choice and as of 3 week ago, I have no more housing loan debt 1 Link to comment Share on other sites More sharing options...
Camper Posted August 8, 2020 Share Posted August 8, 2020 41 minutes ago, The_King said: Me Also don't have, Heng I listen to my gian Peng brain and brought the smallest 2 room instead of the bigger 2 room else my loan still got 10yr to pay But I make the correct choice and as of 3 week ago, I have no more housing loan debt Jskm. Guess you worked really hard to pay off the loans. I sold my house for a tidy sum. Most of which will go to new home. We still need loan as i have very little savings. Lots of employment gaps. Some odd jobs no pay cpf also 😞 Link to comment Share on other sites More sharing options...
The_King Posted August 8, 2020 Author Share Posted August 8, 2020 3 minutes ago, Camper said: Jskm. Guess you worked really hard to pay off the loans. I sold my house for a tidy sum. Most of which will go to new home. We still need loan as i have very little savings. Lots of employment gaps. Some odd jobs no pay cpf also 😞 Me is low ses blue collar worker all the way. Me believe in using only cpf to pay off everything. Simply anything I have no control or say is not mine One good example is from as far as I know last time for chronic sickness I can fill in a form yearly to be included to use medicsave. Then it becomes automatically everytime I see doc but recently poly clinic claim ppl complain so if I want to use medicsave I must tell them each time. I ask them if I can automatically included the payment staff say can't. I must verbally tell her each time I make payment to use medicsave. 2 Link to comment Share on other sites More sharing options...
socrates469bc Posted August 8, 2020 Share Posted August 8, 2020 5 hours ago, Camper said: No wonder recently ocbc dbs like aggressive pushing their loans. Their property loan interest is 1.5%. Ocbc no need fire insurance. The rest need. Maybank lower interest rate at 1.3 or 1.4% if not wrong.. Local banks loan to people like us for own stay probably wont margin call. But one will never know.. aggressive push but compliance might not approve. sure will have some jokers over-stretch the loan margins. i know of a few jokers who have enough money for 80% of the property but decided to buy 3-4 properties since loan margin is 75-80% during the good times. now, with this recession, dont think those jokers can service the 4 loans. now waiting to see defaults appearing this quarter. 1 Link to comment Share on other sites More sharing options...
Camper Posted August 8, 2020 Share Posted August 8, 2020 1 hour ago, The_King said: Me is low ses blue collar worker all the way. Me believe in using only cpf to pay off everything. Simply anything I have no control or say is not mine One good example is from as far as I know last time for chronic sickness I can fill in a form yearly to be included to use medicsave. Then it becomes automatically everytime I see doc but recently poly clinic claim ppl complain so if I want to use medicsave I must tell them each time. I ask them if I can automatically included the payment staff say can't. I must verbally tell her each time I make payment to use medicsave. Wtf i didnt know.. last time i always pay cash. Miserable. Hope no need pay anymore.. no more long term medication anymore.. 2 Link to comment Share on other sites More sharing options...
Camper Posted August 8, 2020 Share Posted August 8, 2020 (edited) 23 minutes ago, socrates469bc said: aggressive push but compliance might not approve. sure will have some jokers over-stretch the loan margins. i know of a few jokers who have enough money for 80% of the property but decided to buy 3-4 properties since loan margin is 75-80% during the good times. now, with this recession, dont think those jokers can service the 4 loans. now waiting to see defaults appearing this quarter. Yes many like that. The new house i buy, the owner seems despo to dispose. His tenancy agreement monthly rate didnt even make sense. Lower than market rate and after factoring cost and interest, he basically cover cost with the rental fee. He practically made nothing when sell the unit to us after deducting all the fees. Many owners also trying to dispose units at cost or with slight loss from what i see. Edited August 8, 2020 by Camper 1 Link to comment Share on other sites More sharing options...
socrates469bc Posted August 8, 2020 Share Posted August 8, 2020 5 minutes ago, Camper said: Yes many like that. The new house i buy, the owner seems despo to dispose. His tenancy agreement monthly rate didnt even make sense. Lower than market rate and after factoring cost and interest, he basically cover cost with the rental fee. He practically made nothing when sell the unit to us after deducting all the fees. Many owners also trying to dispose units at cost or with slight loss from what i see. many-a-times, those jokers never take into account maintenance fees and property tax. then there r the seller's stamp duty and property capital gain tax which may be imposed, depending on the govt and how ur accountant can argue the tax payment. if seller bot 5 yrs ago, he shld make ard 10% but if he bot last yr, confirm he lost at least 15% from taxes alone. 1 Link to comment Share on other sites More sharing options...
Camper Posted August 8, 2020 Share Posted August 8, 2020 2 minutes ago, socrates469bc said: many-a-times, those jokers never take into account maintenance fees and property tax. then there r the seller's stamp duty and property capital gain tax which may be imposed, depending on the govt and how ur accountant can argue the tax payment. if seller bot 5 yrs ago, he shld make ard 10% but if he bot last yr, confirm he lost at least 15% from taxes alone. Yes he bought 5yrs ago. The gross profit indeed is about 10%. I feel i could have low balled him further but because the house FS is suitable so just lower a bit. After factoring all the costs. I say seller breakeven only..was telling wife his rental rate didnt make any sense imho. 1 Link to comment Share on other sites More sharing options...
socrates469bc Posted August 8, 2020 Share Posted August 8, 2020 (edited) 7 minutes ago, Camper said: Yes he bought 5yrs ago. The gross profit indeed is about 10%. I feel i could have low balled him further but because the house FS is suitable so just lower a bit. After factoring all the costs. I say seller breakeven only..was telling wife his rental rate didnt make any sense imho. no point being kind to seller. if he met me, i would have told him 75% of his asking price and cash up front. take it or leave it. i m taking a risk here by buying a fixed asset in uncertain times, not liquid asset like ocbc shares which sure give me dividend income. Edited August 8, 2020 by socrates469bc 1 Link to comment Share on other sites More sharing options...
Camper Posted August 8, 2020 Share Posted August 8, 2020 12 minutes ago, socrates469bc said: no point being kind to seller. if he met me, i would have told him 75% of his asking price and cash up front. take it or leave it. i m taking a risk here by buying a fixed asset in uncertain times, not liquid asset like ocbc shares which sure give me dividend income. 🤣 Anyway is for my own stay not trying to invest. That place i was looking at had bank auction. About 15% to 20% off the market rate back in May iirc. I imagine another lockdown will kill off many more people who had over leveraged.. 2 Link to comment Share on other sites More sharing options...
socrates469bc Posted August 8, 2020 Share Posted August 8, 2020 15 minutes ago, Camper said: 🤣 Anyway is for my own stay not trying to invest. That place i was looking at had bank auction. About 15% to 20% off the market rate back in May iirc. I imagine another lockdown will kill off many more people who had over leveraged.. talking abt bank auction, make sure get the banker to allow viewing the apartment b4 bidding. nb, wait first open fridge find chopped body. https://www.asiaone.com/News/AsiaOne%2BNews/Crime/Story/A1Story20110805-292868.html 1 Link to comment Share on other sites More sharing options...
Camper Posted August 8, 2020 Share Posted August 8, 2020 23 minutes ago, socrates469bc said: talking abt bank auction, make sure get the banker to allow viewing the apartment b4 bidding. nb, wait first open fridge find chopped body. https://www.asiaone.com/News/AsiaOne%2BNews/Crime/Story/A1Story20110805-292868.html Wahhh sibei suay to buy such a home. 😱😱 If for investment and if i have the money, will buy bank auction during this period. But for own stay we have to find very specific facing and sitting direction.. i dont want to make a big mistake again 😅 1 Link to comment Share on other sites More sharing options...
socrates469bc Posted August 8, 2020 Share Posted August 8, 2020 50 minutes ago, Camper said: Wahhh sibei suay to buy such a home. 😱😱 If for investment and if i have the money, will buy bank auction during this period. But for own stay we have to find very specific facing and sitting direction.. i dont want to make a big mistake again 😅 this is an interesting rthk show on buying 'incident' properties. 2 Link to comment Share on other sites More sharing options...
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