Oversea-chinese Banking Corporation Limited · SGX:O39
Oversea-chinese Banking — FY2020 Earnings Presentation
35 slides from Oversea-chinese Banking's earnings presentation, Feb 24, 2021
Slide 1: Full Year 2020 Results Presentation
Full Year 2020 Results Presentation 24 February 2021 OCBC Financial Results Disclaimer: This presentation should be read as an overview of OCBC’s current business activities and operating environment which may contain statements relating to OCBC’s growth strategy and future business aspirations. The
Slide 2: Agenda
Agenda Financial Highlights Group Performance Trends Appendices: Major Subsidiaries’ Results Note: - Certain comparative figures have been restated to conform with the current period’s presentation. - Amounts less than S$0.5m are shown as “0”; - “nm” denotes not meaningful; - “na” denotes not applic
Slide 3: 4Q20 Net Profit up 10% QoQ to S$1.13b
Performance review 4Q20 Net Profit up 10% QoQ to S$1.13b Continued traction in business momentum across the Group ❑ Net profit up for three consecutive quarters ❑ NII rose QoQ; NIM improved 2bps to 1.56% ❑ 4Q20 fee income and trading income up 3% and 4% QoQ respectively ❑ Private banking AUM at new
Slide 4: 4Q20 Financial Highlights
Group performance 4Q20 Financial Highlights 4Q20 net profit highest in four quarters from improved operating conditions Group Net Profit Operating Profit by Geography As a proportion of the Group’s operating profit, contribution from Singapore was lower QoQ mainly from (S$m) lower insurance profit.
Slide 5: 4Q20 Financial Highlights
Group performance 4Q20 Financial Highlights Strong business fundamentals drove fourth quarter performance Banking Wealth Management Net Profit Total NPA Coverage Group Wealth Management Bank of Singapore’s AUM (S$m) Income (S$m) (US$b) 4% QoQ 7% QoQ 6ppt QoQ 11% QoQ 121 1,006 935 938 1/ 117 116 786
Slide 6: Robust Funding, Liquidity and Capital Buffers
Balance sheet Robust Funding, Liquidity and Capital Buffers Well-positioned for future growth Funding Liquidity Capital • Nearly 80% from customer deposits • Sound liquidity position • Strong capital base • NSFR at 125% • LCR well above minimum required • Leverage ratio at 7.7% Composition (S$b) LCR
Slide 7: 4Q20 Group Performance
Group performance 4Q20 Group Performance Net profit increased 10% QoQ mainly from lower allowances and tax write-backs 4Q20 3Q20 QoQ 4Q19 YoY OCBC Group S$m S$m +/(-)% S$m +/(-)% Net interest income 1,436 1,421 1 1,610 (11) 1/ Non-interest income 1,049 1,118 (6) 1,312 (20) Total income 2,485 2,539 (
Slide 8: 4Q20 Banking Operations Performance
Banking Ops performance 4Q20 Banking Operations Performance 4Q20 net profit from Banking Operations up 7% QoQ 4Q20 3Q20 QoQ 4Q19 YoY Banking Operations S$m S$m +/(-)% S$m +/(-)% Net interest income 1,414 1,395 1 1,580 (11) Non-interest income 747 744 – 903 (17) Total income 2,161 2,139 1 2,482 (13)
Slide 9: FY20 Group Performance
Group performance FY20 Group Performance Net profit below last year’s record high, which reflected economic impact of COVID-19 FY20 FY19 YoY OCBC Group S$m S$m +/(-)% Net interest income 5,966 6,331 (6) 1/ Non-interest income 4,173 4,540 (8) Total income 10,139 10,871 (7) Operating expenses (4,439)
Slide 10: FY20 Banking Operations Performance
Banking Ops performance FY20 Banking Operations Performance Operating profit second highest on record despite challenging conditions FY20 FY19 YoY Banking Operations S$m S$m +/(-)% Net interest income 5,860 6,219 (6) Non-interest income 3,004 3,182 (6) Total income 8,864 9,401 (6) Operating expenses
Slide 11: Agenda
Agenda Financial Highlights Group Performance Trends Appendices: Major Subsidiaries’ Results 11
Slide 12: Net Interest Income
Net interest income Net Interest Income 4Q20 NIM improved 2bps from continued balance sheet optimisation 1.77% 1.76% 1.77% NIM 1.60% 1.61% 1.54% 1.56% 6,331 5,966 1,610 1,626 1,483 1,436 1,421 S$m 4Q19 1Q20 2Q20 3Q20 4Q20 FY19 FY20 12
Slide 13: Non-interest Income
Non-interest income Non-interest Income 4Q20 non-interest income at S$1.05b 44.9% 43.5% 44.0% As % of 42.2% 41.8% 41.2% Group 34.7% income 4,540 1,312 4,173 1,142 976 1,118 899 1/ 308 1,049 292 79 282 264 1/ 276 864 196 S$m 63 977 57 37 863 316 157 118 325 255 264 172 18 132 53 35 25 41 32 2,123 2,0
Slide 14: Wealth Management Franchise
Wealth management Wealth Management Franchise WM income slightly below FY19’s record; private banking AUM at a new high of US$121b Total Wealth Management Income Bank of Singapore’s Assets Under Management 37% As % of 34% 34% 33% 121 32% 31% Group income 28% 117 116 3,397 3,366 113 935 938 900 1/ 83
Slide 15: Net Fees & Commissions
Non-interest income Net Fees & Commissions FY20 wealth management fees climbed to a new high 2,123 2,003 322 270 556 546 105 517 87 501 89 69 23 440 71 71 577 432 21 13 28 S$m 111 60 155 23 110 111 216 170 52 100 44 55 57 52 949 998 291 247 252 250 205 4Q19 1Q20 2Q20 3Q20 4Q20 FY19 FY20 Wealth Manag
Slide 16: Trading Income
Non-interest income Trading Income Strong client activity drove FY20 customer flow income to a record YoY decline 977 primarily due to lower MTM gains in GEH investment 863 portfolio due to unfavourable market conditions. 316 325 381 195 255 264 162 159 S$m 82 92 18 668 596 154 157 166 173 172 (139)
Slide 17: Operating Expenses
Operating expenses Operating Expenses Costs tightly controlled; FY20 expenses down 4% YoY 43.3% 44.5% 43.2% 45.3% 43.8% 42.2% 42.7% CIR 4,644 4,439 946 1,266 829 1,109 1,107 1,098 1,125 272 858 862 191 198 212 227 230 208 216 214 224 S$m 2,840 2,748 764 710 693 672 674 4Q19 1Q20 2Q20 3Q20 4Q20 FY19
Slide 18: Allowances
Allowances Allowances Conservative provisioning amid uncertain environment; FY20 credit costs at 67bps 86 97 Credit costs 47 67 27 39 25 on total loans (bps) 1/ 66 FY20 included Credit costs 36 36 32 29 38 allowances set 20 on impaired aside for: loans (bps) 1/ • Management 2,043 Overlay: S$405m 750
Slide 19: Total Cumulative Allowances
Allowances Total Cumulative Allowances NPA coverage ratio of 115% well above 86% a year ago 109% 115% Total NPA 101% 86% 90% coverage 4,618 4,596 4,384 3,953 874 874 874 3,321 874 876 1,863 1,907 S$m 1,668 1,440 1,048 1,639 1,842 1,881 1,815 1,397 Dec 19 Mar 20 Jun 20 Sep 20 Dec 20 Allowances for im
Slide 20: Asset Quality
Asset quality Asset Quality Total NPAs down QoQ; NPL ratio lower at 1.5% 1.6% 1.6% Total NPL ratio 1.5% 1.5% 1.5% of which: 0.8% 0.8% 0.8% 0.7% O&G NPL ratio 0.7% O&G NPL ratio 0.5% (net of ECL stage 3 0.4% 0.3% allowances) 0.3% 0.2% 4,386 4,351 4,255 3,883 283 122 4,005 100 45 546 530 496 88 520 29
Slide 21: Asset Quality
Asset quality Asset Quality FY20 new NPA formation lower YoY S$m 3Q20 4Q20 FY19 FY20 At start of period 4,351 4,255 3,938 3,883 Corporate/ Commercial Banking and Others New NPAs 177 160 1,318 1,088 Net recoveries/ upgrades (118) (90) (700) (252) Write-offs (61) (253) (637) (630) (2) (183) (19) 206 C
Slide 22: Customer Loans
Loans Customer Loans Loans of S$267b were higher QoQ and YoY in constant currency terms Loans by Geography (S$b) +1% YoY (+1% in constant ccy terms) Greater China Loans (S$b) -0.5% QoQ (+0.3% in constant ccy terms) NPL 0.4% 0.4% 0.4% 0.5% 0.5% 271 ratio 265 268 269 267 68 67 67 65 65 42 45 43 44 45
Slide 23: Customer Loans
Loans Customer Loans Loan portfolio remained well-diversified with limited sector concentration Loans by Industry (S$b) 269 267 14% 14% Corporate, SME and Consumer/Private Banking comprise 49%, 11% and 40% of loan book respectively 6% 6% 11% 11% O&G sector comprise 4% of loan book (within which, 2%
Slide 24: Customer Deposits
Deposits Customer Deposits CASA deposits grew to a new high of S$190b; CASA ratio at 60.3% 86.5% 85.1% 85.4% 86.2% Group LDR 83.7% 314 310 307 315 303 25 27 28 30 27 108 97 95 129 129 59.2% 60.3% S$b 56.7% 51.0% 48.4% 175 182 190 147 160 Dec 19 Mar 20 Jun 20 Sep 20 Dec 20 CASA Fixed Deposits Others
Slide 25: FY20 Dividend at 31.8 cents; Payout Ratio at 39%
Dividends FY20 Dividend at 31.8 cents; Payout Ratio at 39% Final dividend of 15.9 cents per share proposed 47% 43% 40% 39% Dividend payout ratio 37% 53.0 43.0 36.0 37.0 28.0 31.8 DPS (cents) 23.0 18.0 19.0 Final dividend 15.9 Interim dividend 25.0 18.0 18.0 20.0 15.9 1/ 2016 2017 2018 2019 2020 1/ I
Slide 26: Agenda
Agenda Financial Highlights Group Performance Trends Appendices: Major Subsidiaries’ Results 26
Slide 27: Great Eastern Holdings’ Performance
Great Eastern Great Eastern Holdings’ Performance FY20 net profit at S$961m QoQ YoY S$m 4Q20 3Q20 FY20 FY19 +/(-)% +/(-)% Profit from insurance business 151 225 (33) 742 815 (9) 1/ - Operating profit 77 171 (55) 732 660 11 - Non-operating profit/ (loss) 48 50 (5) (90) 85 (207) - Others 27 4 502 100
Slide 28: GEH: Financial Highlights
Great Eastern GEH: Financial Highlights Key Performance Trends Profit from Insurance Business (S$m) Profit from Shareholders’ Fund (S$m) 48% 14% 26% 44% 34% 3% 744 642 304 237 221 85 226 64 50 124 1/ 660 732 86 83 173 171 48 62 1/ 77 (90) 4Q19 3Q20 4Q20 FY19 FY20 4Q19 3Q20 4Q20 FY19 FY20 Operating p
Slide 29: OCBC Wing Hang Hong Kong & Macau’s Performance
OCBC Wing Hang OCBC Wing Hang Hong Kong & Macau’s Performance FY20 operating profit rose 10% YoY to a new high of HKD3.02b QoQ YoY HKD m 4Q20 3Q20 FY20 FY19 +/(-)% +/(-)% Net interest income 946 947 − 3,913 3,945 (1) Non-interest income 309 302 2 1,301 1,099 18 Total income 1,255 1,249 − 5,214 5,044
Slide 30: OCBC Wing Hang Hong Kong & Macau Financial Highlights
OCBC Wing Hang OCBC Wing Hang Hong Kong & Macau Financial Highlights Key Performance Trends Net Interest Margin Cost-to-Income 17bps 1bp 3.8ppt 3.4ppt 3bps 6.1ppt 1.84% 1.67% 1.73% 1.72% 43.8% 46.1% 45.5% 1.64% 40.0% 42.1% 4Q19 3Q20 4Q20 FY19 FY20 4Q19 3Q20 4Q20 FY19 FY20 Customer Loans (HKD b) Cust
Slide 31: OCBC Malaysia’s Performance
OCBC Malaysia OCBC Malaysia’s Performance FY20 operating profit at RM1.42b QoQ YoY RM m 4Q20 3Q20 FY20 FY19 +/(-)% +/(-)% Net interest income 376 370 2 1,489 1,507 (1) 1/ Islamic banking income 110 114 (4) 446 448 − Non-interest / finance income 227 130 75 723 726 − Total income 713 614 16 2,658 2,6
Slide 32: OCBC Malaysia Financial Highlights
OCBC Malaysia OCBC Malaysia Financial Highlights Key Performance Trends Net Interest Margin Cost-to-Income 4bps 3bps 1.9ppt 0.4ppt 6bps 3.8ppt 2.08% 2.04% 2.05% 2.02% 49.0% 46.4% 1.98% 43.3% 45.2% 46.0% 4Q19 3Q20 4Q20 FY19 FY20 4Q19 3Q20 4Q20 FY19 FY20 Customer Loans (RM b) Customer Deposits (RM b)
Slide 33: Bank OCBC NISP’s Performance
Bank OCBC NISP Bank OCBC NISP’s Performance FY20 operating profit up 14% YoY to a record, underpinned by strong income growth QoQ YoY IDR b 4Q20 3Q20 FY20 FY19 +/(-)% +/(-)% Net interest income 1,775 1,727 3 6,827 6,439 6 Non-interest income 497 572 (13) 2,249 1,913 18 Total income 2,272 2,299 (1) 9
Slide 34: Bank OCBC NISP Financial Highlights
Bank OCBC NISP Bank OCBC NISP Financial Highlights Key Performance Trends Net Interest Margin Cost-to-Income 44bps 16bps 0.7ppt 2.8ppt 19bps 3.1ppt 4.06% 3.96% 44.6% 43.9% 45.1% 3.81% 3.80% 40.8% 42.3% 3.62% 4Q19 3Q20 4Q20 FY19 FY20 4Q19 3Q20 4Q20 FY19 FY20 Customer Loans (IDR t) Customer Deposits (
Slide 35: Thank You
Full Year 2020 Results Thank You
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