Oversea-chinese Banking Corporation Limited · SGX:O39

Oversea-chinese Banking — H1 2024 Earnings Presentation

21 slides from Oversea-chinese Banking's earnings presentation, Aug 2, 2024

  1. Slide 1: First Half 2024 Results Presentation

    First Half 2024 Results Presentation Goh Chin Yee, Group Chief Financial Officer 2 August 2024 OCBC Financial Results

  2. Slide 2: Agenda

    Agenda 01 Financial Highlights 02 Group Performance Trends Notes: - 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 applicable; - Figures may not sum to st

  3. Slide 3: Performance highlights: Achieved record 1H24 earnings

    Performance highlights Achieved record 1H24 earnings Total Income YoY ■ Total income crossed S$7b Group S$7.26b +7% for the first time S$3.93b +9% YoY Net Profit Net Interest Income (NII) +3% ■ NII grew 3% to a new high. +18% YoY Non-Interest Income (Non-II) +15% Non-II up 15% from growth Operating

  4. Slide 4: 1H24 Group and Banking Operations net profit at new highs

    Performance overview 1H24 Group and Banking Operations net profit at new highs Group Performance Banking Operations Performance (S$m) 1H24 YoY 2Q24 YoY QoQ 1H24 YoY 2Q24 YoY QoQ Net Interest Income 4,867 +3% 2,430 +2% – 4,783 +3% 2,389 +1% – Non-Interest Income 2,388 +15% 1,199 +13% +1% 1,638 +12% 8

  5. Slide 5: Resilient growth across key business pillars

    Performance highlights Resilient growth across key business pillars Banking Wealth Management ■ Record profit for Banking Net Profit (S$m) NII and Fee Income (S$m) WM Income (S$m) 1/ WM AUM (S$b) Operations 35% +6% +3% 33% +2% +14% +2% ■ 1H24 WM income up 14% 2,231 2,541 to new high; AUM at record 6

  6. Slide 6: Profit well-diversified across business and geography

    Performance review Profit well-diversified across business and geography Operating Profit by Business Operating Profit by Geography Others Others Insurance 4% 6% 16% 5% 13% 1H24 Greater China 6% 1H24 19% Global 1% 1H23 1H23 21% Markets 5% Global Wholesale 48% Banking 27% 54% Indonesia 5% 55% 6% 58%

  7. Slide 7: Strong balance sheet with all regulatory ratios well above requirements

    Balance sheet Strong balance sheet with all regulatory ratios well above requirements Loans-to-Deposits Ratio Funding Composition (%) Group LDR (%) ■ Robust funding, liquidity Customer deposits 12% and capital positions to Bank deposits support business growth Debts issued 7% S$473b Capital and rese

  8. Slide 8: Group Performance Trends

    Agenda 01 Financial Highlights 02 Group Performance Trends 8

  9. Slide 9: 1H24 NII rose to a new high

    Net interest income 1H24 NII rose to a new high 1Q22 1H24 YoY 2Q24 +44% 2Q23 YoY +2% 2.26% 2.27% 2.29% 2.27% 2.20% 2.28% 2.23% YoY +3% QoQ +44% Net Interest Margin QoQ unchanged 4,727 4,867 ■ 1H24 NII rose to an all-time high. Average assets were up 5%, primarily from an 2,456 2,462 2,437 2,430 2,38

  10. Slide 10: 1H24 Non-II growth broad-based

    Non-interest income 1H24 Non-II growth broad-based 1H24 YoY 2Q24 +44% 2Q23 YoY +13% 32.8% 33.0% 32.9% YoY +15% QoQ QoQ +44% +1% 30.8% 28.4% 30.5% 24.8% % of Group Income 2,388 ■ 1H24 Non-II grew 15% YoY, driven by higher fee, 2,078 trading and insurance 583 income 1,189 1,199 500 134 1,066 Non-inter

  11. Slide 11: 1H24 fee income grew 7% YoY

    Non-interest income 1H24 fee income grew 7% YoY 1H24 YoY 2Q24 +44% 2Q23 YoY +8% YoY +7% QoQ QoQ +44% -3% 945 883 141 141 ■ 1H24 fee income boosted by 46 higher wealth management 479 52 fees, underpinned by strong 461 460 466 Net Fees & Commissions (S$m) 430 239 traction across all wealth 75 66 84 80

  12. Slide 12: 1H24 trading income up 28% YoY to a record high

    Non-interest income 1H24 trading income up 28% YoY to a record high 1H24 YoY 2Q24 +44% 2Q23 YoY +14% YoY +28% QoQ QoQ +44% -4% 726 185 ■ 1H24 trading income up 566 28%, driven by record customer flow income 171 370 356 Trading Income (S$m) 311 93 92 Non-Customer Flow 111 541 216 222 Customer Flow 7

  13. Slide 13: 1H24 operating expenses well controlled; CIR at 37.5%

    Operating expenses 1H24 operating expenses well controlled; CIR at 37.5% 1H24 YoY 2Q24 +44% 2Q23 YoY +3% YoY +6% QoQ QoQ +44% +2% 38.5% 39.1% 40.0% 37.8% 37.8% 37.1% 37.5% Cost-to-income (CIR) 2,719 ■ 1H24 expenses up 6%, 2,573 mainly attributable to 387 368 higher staff, IT-related and business pro

  14. Slide 14: NPL ratio lower at 0.9%

    Asset quality NPL ratio lower at 0.9% YoY YoY -11% +44% Jun 24 2Q23 Non-performing assets (NPAs) 2Q23 1Q24 2Q24 1H23 1H24 QoQ QoQ +44% -5% (S$m) At start of period 3,329 2,901 3,040 3,486 2,901 ■ Loan portfolio quality remained resilient. NPAs Corporate/ Commercial Banking and Others declined YoY an

  15. Slide 15: 1H24 allowances and credit costs lower YoY

    Allowances 1H24 allowances and credit costs lower YoY 1H24 YoY 2Q24 +44% Credit costs (bps) 1/ 31 2Q23 YoY -43% 21 21 YoY -14% QoQ QoQ +44% -14% Total 17 16 15 15 21 18 6 16 6 17 ■ Total credit costs for 1H24 (0) Impaired lower YoY at an annualised 15bps 362 313 ■ 2Q24 allowances down QoQ driven by

  16. Slide 16: NPA coverage ratio at 155%

    Allowances NPA coverage ratio at 155% YoY YoY +4% +44% Jun 24 2Q23 139% 151% 146% 155% QoQ +1% QoQ +44% Total NPA coverage 131% ■ NPA coverage ratio higher 4,438 4,492 4,299 4,296 4,382 QoQ at 155%, mainly 455 455 455 attributable to lower NPAs 455 455 Cumulative allowances (S$m) Regulatory Loss All

  17. Slide 17: Loan growth sustained, up YoY and QoQ to S$304b

    Loans Loan growth sustained, up YoY and QoQ to S$304b Loans by Geography Loans by Industry YoY YoY +2% +44% Jun 24 2Q23 +3% QoQ QoQ +44% +1% (S$b) in constant ccy terms +1% (S$b) in constant ccy terms 297 298 297 301 304 27b 18b 9% 65b 59 60 60 62 64 6% 21% ■ YoY loan growth up 3% in 15b Rest of the

  18. Slide 18: Deposits stable QoQ, CASA ratio higher YoY and QoQ

    Deposits Deposits stable QoQ, CASA ratio higher YoY and QoQ YoY YoY -1% +44% 80.5% 80.3% 81.1% Jun 24 2Q23 Group LDR 78.8% 79.7% QoQ QoQ +44% unchanged 81.6% 80.9% 81.4% SGD LDR 76.1% 76.4% ■ Customer deposits were lower by 1% YoY mostly from a decline in higher- 51.6% 53.3% 49.2% 50.5% 49.8% USD LD

  19. Slide 19: Interim dividend up 10% YoY to 44 cents

    Dividend Interim dividend up 10% YoY to 44 cents 53% 53% YoY +44% Dividend payout ratio 49% 1H24 2Q23 YoY +10% 39% QoQ +44% Full Year 49% 50% 50% ■ Interim dividend up 4 cents 42% 44% Interim or 10% YoY to 44 cents 82.0 ■ 50% payout ratio, similar to 68.0 1H23 42.0 53.0 DPS (cents) 40.0 Final divide

  20. Slide 20: Solid capital position

    Capital Solid capital position CET1 CAR after adjusting for 1H24 interim dividend to be paid on 23 August 2024 YoY YoY +0.1ppt +44% Jun 24 2Q23 QoQ QoQ +44% -0.7ppt ■ CET1 CAR down QoQ as 15.9 16.2 15.5 profit accretion from 2Q24 CET1 CAR (%) 15.4 14.8 14.7 was more than offset by payment of FY23 fi

  21. Slide 21: Thank you

    Thank you 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. This presentation contains “forward-looking statements”, which are ba

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