Q4 net profit rises to S1.62 bln vs S1.72 bln estimate
ROE rose to 13.7 in 2023 vs 11.1 a year earlier
Net interest margin at 2.28 in 2023 vs 1.91 a year earlier
Group wealth management AUM expanded 2 to S263 bln
2023 dividend raised to 82 cents, up 21 from a year earlier

SINGAPORE, Feb 28 Reuters Singapore39;s OverseaChinese Banking Corp OCBC expected a drop in 202439;s net interest margin NIM, a key profitability gauge, after posting a 12 jump in fourthquarter net profit that missed expectations due to weaker insurance income.

We expect 2024 to be a more challenging year than 2023, OCBC39;s Chief Executive Officer Helen Wong said in an earnings briefing on Wednesday.

It39;s a lot about uncertainties, and global growth slowdown is anticipated, although we do expect Asia to perform better than the world average, she added.

Against the expectation that interest rates would start falling from the second half of the year, OCBC is targeting the 2024 NIM to be in the range of 2.20 to 2.25, lower than 202339;s 2.28, Wong said.

Return on equity ROE in 2024 was set to range between 13 and 14, versus 13.7 in 2023, while loan growth is expected to be in the low single digits.

Credit costs, or allowances for loans as a percentage of average loans, were forecast at between 20 to 25 basis points versus 20 bps in 2023, Wong added.

Shares of OCBC dropped 2.5 to S12.98, near a twoweek low by midday, underperforming the broader benchmark stock index39;s 0.3 decline.

OCBC,…