January 19, 2012

OCBC

DMG & Partners Research on Jan 18 2012

OCBC has announced the retirement of David Conner as CEO effective April 14. Succeeding him is Samuel Tsien, who is currently OCBC's head of Global Corporate Bank.

OCBC has also announced the promotion of Ching Wei Hong, currently head of Global Consumer Financial Services, to the newly created position of chief operating officer. The new appointments will be effective April 15.

As the two top appointments are from within the bank, we believe the broad strategy for OCBC growth will remain largely unchanged initially. We believe OCBC's long-term growth remains promising. However, given the global economic uncertainties, we ascribe a target P/B of 1.3x for OCBC, lower than the historical average of 1.54x. This yields a target price of S$8.30, which is unchanged. Maintain 'neutral'.
NEUTRAL

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