Oversea-chinese Banking Corporation Limited · SGX:O39
Oversea-chinese Banking — Q3 2021 Earnings Presentation
24 slides from Oversea-chinese Banking's earnings presentation, Nov 3, 2021
Slide 1: Third Quarter 2021 Results Highlights
Third Quarter 2021 Results Highlights 3 November 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. Th
Slide 2: Agenda
Agenda 1 Financial Highlights 2 Group Performance Trends 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 applicable; - Figures may not sum to state
Slide 3: 3Q21 Performance
Performance review 3Q21 Performance 3Q21 net profit grew 19% YoY to S$1.22b ❑ Earnings momentum supported by improved operating conditions ➢ Banking operations net profit rose 33% YoY; loans growth of 6% YoY and 4% QoQ ➢ Private banking AUM of US$123b; continued inflows of net new money ➢ Profit fro
Slide 4: 3Q21 Financial Highlights
Group performance 3Q21 Financial Highlights Group net profit up YoY and QoQ; ROE higher at 9.5% Group Net Profit Operating Profit by Geography (S$m) 19% YoY Others 5% QoQ 7% 3Q21 1,224 Greater 1,160 China 6% 1,028 176 3Q20 Singapore 192 23% 241 22% Insurance Banking 50% 46% 1,048 8% 968 786 8% 14% I
Slide 5: 3Q21 Financial Highlights
Group performance 3Q21 Financial Highlights Resilient performance across OCBC’s diversified franchise Banking Wealth Management Net Profit NPAs (S$m) and NPL ratio Group Wealth Management Income 1/ Bank of Singapore’s AUM (S$m) 33% YoY (S$m) (US$b) 1.6% 1.5% 1.5% 7% YoY 8% QoQ 6% YoY 4% QoQ unchange
Slide 6: Strong Balance Sheet Fundamentals
Balance sheet Strong Balance Sheet Fundamentals Solid funding, liquidity and capital positions to support growth Funding Liquidity Capital • 80% from customer deposits • Sound liquidity position • Strong capital base • NSFR at 125% • LCR well above minimum required • Leverage ratio at 7.8% Compositi
Slide 7: Group Performance
Group performance Group Performance 3Q21 net profit rose 19% YoY to S$1.22b; 9M21 net profit up 58% 9M21 9M20 YoY 3Q21 3Q20 YoY 2Q21 QoQ OCBC Group S$m S$m +/(-)% S$m S$m +/(-)% S$m +/(-)% Net interest income 4,363 4,530 (4) 1,461 1,421 3 1,461 – Non-interest income 3,683 3,124 18 1,099 1,118 (2) 1,
Slide 8: Banking Operations Performance
Banking Ops performance Banking Operations Performance 3Q21 Banking Operations’ net profit higher YoY and QoQ 9M21 9M20 YoY 3Q21 3Q20 YoY 2Q21 QoQ Banking Operations S$m S$m +/(-)% S$m S$m +/(-)% S$m +/(-)% Net interest income 4,290 4,446 (4) 1,437 1,395 3 1,436 ─ Non-interest income 2,512 2,257 11
Slide 9: Agenda
Agenda 1 Financial Highlights 2 Group Performance Trends 9
Slide 10: Net Interest Income
Net interest income Net Interest Income 3Q21 net interest income up 3% YoY supported by asset growth 1.58% 1.63% 1.54% 1.56% 1.56% 1.52% 1.55% Net interest margin NIM down 6bps QoQ from lower asset yields 4,530 and gapping income, 4,363 and interest reversals 1,436 1,441 1,461 1,461 1,421 Net intere
Slide 11: Non-interest Income
Non-interest income Non-interest Income Non-interest income for 3Q21 at S$1.10b 50.6% 45.8% 44.0% 42.2% 43.2% 42.9% As % of Group income 40.8% 3,683 1,473 3,124 Non-interest income (S$m) 1,035 703 1,118 470 1,111 200 Life & General Insurance 1,099 1,049 238 Net gains from investment 264 254 611 196
Slide 12: Wealth Management Franchise
Wealth management Wealth Management Franchise 9M21 WM income rose 13% to S$3.04b; private banking AUM grew 6% YoY to US$123b Total Wealth Management Income (S$m) Bank of Singapore’s Assets Under Management (US$b) Down QoQ from decline in market 41% valuations which 38% 36% 38% offset net new 35% 35%
Slide 13: Net Fees & Commissions
Non-interest income Net Fees & Commissions 3Q21 fee income higher from continued growth in customer activities 1,718 204 1,487 80 585 569 200 563 Net fees & commissions (S$m) 517 68 59 350 501 69 67 23 23 71 71 34 321 Others 2/ 28 108 178 13 124 Investment Banking 117 110 111 65 159 Loan, Trade, Gua
Slide 14: Trading Income
Non-interest income Trading Income Customer flow treasury income resilient 316 598 611 50 255 264 86 102 Trading income (S$m) 212 82 92 Non-Customer Flow 44 83 Customer Flow 561 230 496 173 172 168 164 (81) 3Q20 4Q20 1Q21 2Q21 3Q21 9M20 9M21 Non-customer flow income lower, largely driven by unrealis
Slide 15: Operating Expenses
Operating expenses Operating Expenses 3Q21 expenses rose to S$1.19b 45.3% 44.3% 46.4% 43.2% 43.3% 43.2% Cost-to-income 39.4% Up YoY from rise in headcount, compensation linked to higher business volumes and lower government job support grants 3,476 3,314 588 1,188 601 1,125 1,149 1,138 Operating exp
Slide 16: Allowances
Allowances Allowances 3Q21 allowances down YoY and QoQ; credit costs lower at 21 bps Credit costs (bps) 1/ 77 47 39 30 22 21 25 Total 32 41 Impaired 21 24 21 20 18 1,758 350 Allowances (S$m) 816 285 Allowances for non- impaired assets 202 48 232 (ECL stage 1 and 2) 163 161 101 Allowances for 555 imp
Slide 17: Total Cumulative Allowances
Allowances Total Cumulative Allowances NPA coverage ratio at 97% 115% 118% 109% 104% Total NPA coverage 97% 4,763 4,618 4,596 4,236 4,127 874 874 874 Cumulative allowances (S$m) 444 444 Regulatory Loss Allowance Reserve (“RLAR”) 1,914 1,863 1,907 2,012 1,998 Allowances for non-impaired assets (ECL s
Slide 18: Asset Quality
Asset quality Asset Quality NPL ratio stable at 1.5% for the past four quarters 1.6% 1.5% 1.5% 1.5% 1.5% NPL ratio 4,255 4,243 100 4,005 4,027 4,082 95 88 89 91 378 Non-performing Assets (S$m) 496 484 476 517 243 Debt securities / Contingent liabilities 357 358 324 332 Rest of the World NPLs 692 1,0
Slide 19: Asset Quality
Asset quality Asset Quality 3Q21 new NPA formation up QoQ largely from downgrades of secured consumer loans in Malaysia S$m 3Q20 2Q21 3Q21 9M20 9M21 At start of period 4,351 4,027 4,082 3,883 4,005 New NPAs Corporate/ Commercial Banking and Others 177 459 435 982 1,035 Consumer Banking/ Private Bank
Slide 20: Customer Loans
Loans Customer Loans Customer loans up 7% year-to-date Loans by Geography (S$b) Greater China Loans (S$b) 6% YoY ( 6% in constant ccy terms) 4% QoQ ( 3% in constant ccy terms) 0.5% 0.5% 0.5% 0.5% 0.3% NPL ratio 285 269 267 271 275 73 70 49 67 65 67 4 48 4 3 44 45 48 4 4 4 3 • Total China onshore and
Slide 21: Customer Loans
Loans Customer Loans Loan composition by industry stable quarter-on-quarter 285 275 Loans by Industry (S$b) 13% 14% Corporate, SME and Consumer/Private Banking comprise 50%, 12% and 38% of Others 6% loan book respectively 6% Manufacturing 11% 11% O&G sector comprise 5% of loan book (within which, 1%
Slide 22: Loan Relief Update
Relief programmes Loan Relief Update Relief loans made up S$6.3b or 2% of Group loans 30 Jun 2021 30 Sep 2021 Loans under moratorium – Group S$4.5b 90% secured S$6.3b 89% secured % of Group loans 2% 2% By Geography S$b % of country loans S$b % of country loans Singapore 2.2 1% 1.6 1% Individuals 1.1
Slide 23: Customer Deposits
Deposits Customer Deposits CASA deposits grew 13% YoY to S$206b; CASA ratio at 62.0% 86.2% 84.7% 85.6% 84.5% 83.7% Group LDR 333 307 315 316 317 36 28 30 31 29 Customer Deposits (S$b) 90 91 97 95 90 Others Fixed Deposits CASA 61.8% 62.5% 62.0% 59.2% 60.3% CASA ratio 190 195 198 206 182 Sep 20 Dec 20
Slide 24: Thank You
Thank You &) ocBc Bank
Oversea-Chinese Banking — Q3 2021 Earnings Presentation on 6ix