OCBC's 2Q12 earnings likely to disappoint, warns analyst

The strong trading profits recorded in 1Q12 are unlikely to repeat this time.

Here's more from DBS:

OCBC’s 2Q12 results to be released on 2 Aug (am). OCBC is likely to report weaker q-o-q earnings momentum with lower contribution from GEH and is unlikely to repeat the strong trading profits recorded in 1Q12. But on a y-o-y basis, with low provisions and a likely rebound in loan growth (vs 1Q12), we expect earnings to grow 16% y-o-y.

OCBC remains a Buy with S$10.50 TP. Insurance contribution may be volatile in the short-term but new business embedded value seals long-term trends. We keep our bet on OCBC (over UOB) for stronger asset quality indicators and surprises in its insurance operations. We believe OCBC’s focus on non-interest income (insurance and wealth management) remains a positive factor, which will drive ROEs quicker over the longer term without utilising too much capital.