Oversea-chinese Banking Corporation Limited · SGX:O39
Oversea-chinese Banking — Q1 2006 Earnings Presentation
24 slides from Oversea-chinese Banking's earnings presentation, May 15, 2006
Slide 1: First Quarter 2006 Results Presentation
First Quarter 2006 Results Presentation 15 May 2006
Slide 2: Agenda
Agenda • Results Overview • Performance Trends • Results of Key Subsidiaries 2
Slide 3: First Quarter Net Profit Up 7% YoY
First Quarter Net Profit Up 7% YoY 1Q06 1Q05 YoY 4Q05 QoQ S$m S$m +/(-)% S$m +/(-)% Net Interest Income 395 363 9 414 (5) Non-Interest Income 348 312 11 364 (4) - Fee Income 140 122 15 128 9 Total Income 743 675 10 779 (5) Operating Expenses (308) (252) 22 (312) (1) Operating Profit 435 423 3 467 (7
Slide 4: Key Financial Ratios
Key Financial Ratios 1Q06 4Q05 1Q05 % % % Net Interest Margin 1.89 1.90 1.78 Non-Interest Income/ Total Income 46.8 46.8 46.3 Cost-to-Income Ratio 41.5 40.1 37.3 Loans-to-Deposits Ratio 84.6 86.0 86.1 NPL Ratio 4.1 4.1 4.8 Allowances/NPLs 87.6 88.3 84.2 ROE 10.8 11.6 10.6 Cash ROE 11.2 11.9 11.0 4
Slide 5: Agenda
Agenda • Results Overview • Performance Trends • Results of Key Subsidiaries 5
Slide 6: Stable Net Interest Margin
Stable Net Interest Margin Net interest 1.90% 1.89% 1.82% 1.83% margin 1.78% 407 413 414 395 363 Net interest income (S$m) 1Q05 2Q05 3Q05 4Q05 1Q06 6
Slide 7: Average Yield and Cost of Funds Analysis
Average Yield and Cost of Funds Analysis Interest Interest Rate Ave Bal First Quarter 2006 Inc / Exp Ave Rate YoY QoQ S$bn S$m % bps bps Customer loans 53.8 682 5.14 + 120 + 23 Placements with Banks 15.2 146 3.90 + 119 + 56 Securities/ Others 15.8 152 3.90 + 104 +6 Interest Earning Assets 84.8 980 4
Slide 8: Non-Interest Income Up 11% YoY
Non-Interest Income Up 11% YoY 46.3% 46.8% 46.8% 43.7% Non-interest income/ 41.8% Total income 364 348 321 312 291 Non-interest income (S$m) 1Q05 2Q05 3Q05 4Q05* 1Q06 * 4Q05 includes S$63m of special dividend from Raffles Holdings Limited 8
Slide 9: Steady Growth in Fee Income
Steady Growth in Fee Income Fee income/ 18.9% Total income 18.0% 18.1% 17.8% 16.5% 140 131 128 126 122 Fee income (S$m) 1Q05 2Q05 3Q05 4Q05 1Q06 9
Slide 10: Adjusted for Consolidation Effects, Expenses Increased 11% YoY
Adjusted for Consolidation Effects, Expenses Increased 11% YoY 40.5% 40.5% 41.5% Cost-to-income ratio 40.1% 37.3% 312 308 298 282 252 81 78 71 66 59 Operating 61 66 61 Expenses 56 50 (S$m) 160 165 165 170 143 1Q05 2Q05 3Q05 4Q05 1Q06 Staff Cost Premises & Equipment Others 10
Slide 11: Operating Profit
Operating Profit Operating Profit before allowances (S$m) 467 437 435 423 415 1Q05 2Q05 3Q05 4Q05 1Q06 11
Slide 12: Net Writeback of Allowances Due to Recoveries
Net Writeback of Allowances Due to Recoveries Allowances for loans and other assets (S$m) 24 12 (2) (7) (23) 1Q05 2Q05 3Q05 4Q05 1Q06 12
Slide 13: Net Profit and ROE
Net Profit and ROE ROE 12.1% 11.6% 10.6% 10.7% 10.8% 355 341 318 298 304 Net Profit (S$m) 1Q05 2Q05 3Q05 4Q05 1Q06 13
Slide 14: Loans Growth of 6% YoY
Loans Growth of 6% YoY Loans (S$bn) 56.5 57.0 57.2 56.6 53.6 9.2 9.1 9.2 8.8 7.6 9.2 9.8 9.7 9.6 8.8 37.1 38.2 38.1 38.3 38.1 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Singapore Malaysia International 14
Slide 15: Lower Loans-to-Deposits Ratio
Lower Loans-to-Deposits Ratio 87.4% 90.0% 86.1% 85.6% 86.0% 84.6% Loans-to-deposits 85.7% 84.4% 83.3% 83.7% 83.2% 80.0% 63.6 62.8 64.1 64.5 59.7 70.0% 8.2 8.6 9.1 9.0 7.0 11.2 11.4 11.4 11.0 11.0 60.0% Deposits (S$bn) 38.9 40.4 40.4 40.5 41.1 50.0% 40.0% Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Fixed Depo
Slide 16: Asset Quality Remains Strong
Asset Quality Remains Strong NPL Ratio 4.8% 4.3% 4.2% 4.1% 4.1% 2,705 2,592 2,467 2,392 2,346 NPLs (S$m) 886 821 745 708 701 1,596 1,485 1,454 1,416 1,387 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Singapore Malaysia International 16
Slide 17: Allowances Coverage
Allowances Coverage 87% 87% 88% 88% 84% Total Allowances / NPLs Specific Allowances / NPLs 49% 50% 48% 48% 46% Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 17
Slide 18: Robust Capital Position
Robust Capital Position (%) Total CAR 17.7 17.3 16.6 17.0 14.7 4.4 4.1 3.9 Tier 2 CAR 4.1 4.0 13.3 12.5 13.2 13.1 Tier 1 CAR 10.7 (S$m) Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Tier-1 capital 9,138 7,853 9,008 9,302 9,268 Risk Weighted Assets 68,546 73,547 71,679 70,708 70,545 18
Slide 19: Agenda
Agenda • Results Overview • Performance Trends • Results of Key Subsidiaries 19
Slide 20: OCBC Malaysia's 1Q06 Net Profit Up 25% YoY
OCBC Malaysia’s 1Q06 Net Profit Up 25% YoY 1Q06 1Q05 YoY 4Q05 QoQ Unaudited Results* RM m RM m +/(-)% RM m +/(-)% Net Interest Income 166 144 15 170 (2) Islamic Banking Income 13 10 32 14 (11) Non Interest Income 73 57 29 65 12 Total Income 252 210 20 249 1 Operating Expenses (91) (84) 8 (100) (9) O
Slide 21: OCBC Malaysia: Financial Ratios
OCBC Malaysia: Financial Ratios 1Q06 4Q05 1Q05 Unaudited Results* % % % Net Interest Margin 2.52 2.55 2.41 Non-Interest Income / Total Income 29.0 26.0 27.0 Cost-to-Income Ratio 36.0 40.0 40.0 RM Loans-to-Deposits Ratio 83.2 85.1 87.1 Gross NPL Ratio 6.3 6.2 7.6 Loans Growth (YTD) 1.7 10.0 3.0 ROE 2
Slide 22: GEH Contributed 21% of Group Net Profit
GEH Contributed 21% of Group Net Profit 1Q06 4Q05 1Q05 GEH’s Contribution to OCBC’s Results S$m S$m S$m Total Income 141 139 127 Operating Expenses (26) (23) (21) Operating Profit 114 116 106 Amortisation of Intangibles (10) (10) (10) Tax (19) (21) (14) Minority Interests (16) (16) (23) Net Profit c
Slide 23: Bank NISP Results – Recovering from Volatile Interest Rates
Bank NISP Results – Recovering from Volatile Interest Rates 1Q06 1Q05 YoY 4Q05 QoQ Unaudited Results* RP bn RP bn +/(-)% RP bn +/(-)% Net Interest Income 201 172 17 187 8 Non Interest Income 40 96 (58) 167^ (76) Expenses (162) (145) 12 (174) (7) Operating Profit 80 123 (35) 180 (55) Allowances 4 (4)
Slide 24: First Quarter 2006 Results – Thank You
First Quarter 2006 Results Thank You
Oversea-Chinese Banking — Q1 2006 Earnings Presentation on 6ix