"The results reaffirm the resilient and stable nature of earnings which in turn is reflective of multiple earnings lever, buffers to mitigate asset quality deterioration and healthy capital position," said Mr Guha.
"While lower rates and ample liquidity may provide upside risk, recent oil price volatility may delay any expected recovery. While our concern on mergers and acquisitions overhang and excess capital still hold, we think the valuation of OCBC discounts those risks," said Mr Guha. While Mr Guha said recent oil price volatility might delay any expected recovery, UOB Kay Hian said in a report that banks have whittled down their exposures to the oil-and-gas sector through recoveries and write-offs.