SINGAPORE (Sept 26): Maybank Kim Eng is maintaining its “Hold” recommendation on OCBC Bank with an unchanged price target of S$11.05, pending further details of reduced stakes in the Malaysian business of its 87.9%-owned insurance arm, Great Eastern Holdings (GEH).
This comes after GEH last week announced it was assessing its options to sell its minority stake in Great Eastern Life Assurance (Malaysia) to comply with Bank Negara Malaysia’s (BNM) requirement of a minimum 30% domestic ownership in local insurance companies.
In a Monday report, analyst Ng Li Hiang says the one-off gains GEH’s stake sale in both its life and general insurance businesses may raise OCBC’s FY18E profit by 6%-20%, while its fully-loaded CET1 may improve by...(click on link for full story on theedgesingapore.com)