Find out what badly hurt OCBC's FY13 results

Numbers are just slightly above expectations.

According to OSK DMG, OCBC’s FY13 earnings dipped 2% y-o-y, weighed down by unrealised MTM losses from its insurance unit and lower trading income.

OCBC’s core earnings of SGD663m (-6% q-o-q) for 4Q13 and SGD2.77m for FY13 (-2% y-o-y) were in line with street forecast (SGD2.70bn) but 3.5% ahead of our estimate of SGD2.67bn.

Here's more from OSK DMG:

The variance was mainly due to lower-than-expected operating expenses and loan provisions. It has proposed a final dividend of 17 cents per share.

Dampened by GE and lower trading income. FY13 earnings were largely moderated by: i) a 13% y-o-y drop in profit from Great Eastern (GE SP, NR) as a result of unrealised mark-to-market (MTM) losses in its non-participating fund, and ii) a 49% y-o-y decline in net trading income to SGD262m.

Ex-Great Eastern contribution, FY13 core net profit was up 1% y-o-y at SGD2.23bn owing to higher profits from associates (+88% y-o-y) and lower loan allowances (-2% y-o-y). On the positive side: i) loans and deposits grew a robust 18% y-o-y and 19% y-o-y, respectively, ii) NIM was stable throughout the four quarters, and iii) fee income grew 13% y-o-y, led by wealth management (+28% y-o-y), loan-related income (+13% y-o-y) and credit cards (+28% y-o-y).