Oversea-chinese Banking Corporation Limited · SGX:O39
Oversea-chinese Banking — Investor Presentation (February 2012)
28 slides from Oversea-chinese Banking's investor presentation, Feb 20, 2012
Slide 1: New Horizons III Report Card
Presentation to Media and Analysts New Horizons lll Report Card ] 20 Feb 2012 1
Slide 2: Agenda
Agenda • Recap of New Horizons lll • Progress against New Horizons lll • Balanced Business Scorecard • Customer Experience • International Expansion • Leveraging on Group Synergies • Conclusion 2
Slide 3: Agenda
Agenda • Recap of New Horizons lll • Progress against New Horizons lll • Balanced Business Scorecard • Customer Experience • International Expansion • Leveraging on Group Synergies • Conclusion 3
Slide 4: Recap of New Horizons III
Recap of New Horizons lll Balanced Business • Continue to drive performance through a Balanced Scorecard Business Scorecard Customer Experience • Maintain focus on delivering a superior and differentiated customer experience to gain a sustainable competitive advantage International • Further deepen
Slide 5: Agenda
Agenda • Recap of New Horizons lll • Progress against New Horizons lll • Balanced Business Scorecard • Customer Experience • International Expansion • Leveraging on Group Synergies • Conclusion 5
Slide 6: Progress against New Horizons III: Balanced Business Scorecard (Recap)
Progress against New Horizons lll:- Balanced Business Scorecard (Recap) Continue our disciplined approach to drive performance improvement through a balanced business scorecard, focusing on customers, products, risk management, productivity, people and shareholder value: – Strengthen our market posi
Slide 7: Customers – Consumers
Customers – Consumers +3% +1% • Grew customer base by 1.3%, +5% +11% notwithstanding a clean-up of 110K dormant customers during the year +10% • Maintained AUM per mass customer despite growth in customer base • Continued to leverage on customer insights – Used Customer Experience Labs to prototype
Slide 8: Customers – High Net Worth Individuals
Customers – High Net Worth Individuals +23% • Grew AUM and EAB by 19% and 23% +20% respectively • Broad-based growth across major markets of S.E. Asia, the Philippines, Greater China and the India Sub-Continent • Staff strength increased 20%, with the 2007 2008 2009 2010 2011 expansion of the team o
Slide 9: Customers – Businesses
Customers – Businesses +10% +9% • Sustained growth of 10% in SME +10% +15% customer base +15% • Cross-sell ratio* improved 6%, led by higher deposits earnings (on the back of an improved interest rate environment) and treasury income 2007 2008 2009 2010 2011 • Maintained credit availability to custo
Slide 10: Product Innovation
Product Innovation • Innovation index* improved to 8% • Continued recognition for our improved product capabilities – Best SME Bank (Cash Management) in S’pore 94 (The Asset); Rising Star Cash Management Bank 84 81 in M’sia (The Asset) 66 80 – Best Trade Finance Bank in S’pore (Finance Asia); Best T
Slide 11: Risk Management
Risk Management • Adopted Basel II since 1 Jan 2008 Pillar 1 Refined and expanded internal ratings framework with significant RWA optimization Adopted IRB approach for 84% of credit portfolios Pillar 2 Credit Ratings Improved internal capital adequacy assessments with expanded coverage and mor
Slide 12: Productivity
Productivity • Productivity gains of 4% and unit cost reduction of 3% across processing centres in Singapore and Malaysia 43.2% 43.7% 42.3% 40.1% 37.3% • Hubbed additional processes to Malaysia, with incremental annualized savings of S$0.26 million; projected cumulative savings of more than S$120 mi
Slide 13: People
People • Employee engagement score up for the 9th consecutive year since 2002 +6% +5% +4% • Employee shareholding above 50% +2% +1% • Average training days per staff 52% 2007 2008 2009 2010 2011 above annual target Employee Engagement Score Improvement* • Refreshed our Employee Volunteer Program to
Slide 14: Shareholder Value
Shareholder Value • ROE of 11.1%; cash ROE of 11.4% 13.4% • Core EPS of 64.8 cents per share in 12.2% 12.1% 11.1% 2011, down 2% due to the high 9.9% participation in the scrip dividend scheme 2007 2008 2009 2010 2011 • Dividends stable at 30 cents per share, ROE excl divestment gains dividend payout
Slide 15: Agenda
Agenda • Recap of New Horizons lll • Progress against New Horizons lll • Balanced Business Scorecard • Customer Experience • International Expansion • Leveraging on Group Synergies • Conclusion 15
Slide 16: Progress against New Horizons III: Customer Experience (Recap)
Progress against New Horizons lll:- Customer Experience (Recap) Maintain focus on delivering a superior and differentiated customer experience to gain a sustainable competitive advantage: – Leverage our customer insights (from survey of customers and mining of ‘GIFTS’ complaints platform) to develop
Slide 17: Update on Customer Experience and Quality Initiatives
Update on Customer Experience and Quality Initiatives Building Capabilities: • Established Market Research, Experience Design and Customer Culture capabilities • Trained more than 400 employees in customer experience skills, such as Design Thinking, Usability and Clear Writing • Another 114 employee
Slide 18: Update on Customer Experience and Quality Initiatives
Update on Customer Experience and Quality Initiatives Improving Customer Touch-Points: • Launched our new Online Banking platform, providing a user-friendly and jargon-free experience with features to assist customers in managing their finances • Implemented a paperless and engaging account opening
Slide 19: Update on Customer Experience and Quality Initiatives
Update on Customer Experience and Quality Initiatives Creating New Banking Experiences: • Launched a revolutionary new banking experience for Gen Y, Frank by OCBC based on in- depth customer research and a Design Thinking methodology. 19
Slide 20: Agenda
Agenda • Recap of New Horizons lll • Progress against New Horizons lll • Balanced Business Scorecard • Customer Experience • International Expansion • Leveraging on Group Synergies • Conclusion 20
Slide 21: Progress against New Horizons III: International Expansion (Recap)
Progress against New Horizons lll:- International Expansion (recap) Deepen business presence in Malaysia, Indonesia and Greater China – Expand our distribution capabilities in Malaysia and strive to take market share, including Islamic banking and Takaful insurance – Build on the enlarged OCBC NISP
Slide 22: Update on International Expansion
Update on International Expansion Malaysia • Inter-bank cash withdrawal transactions continued to grow following our membership in MEPS since 2010, giving customers access to >10,000 ATMs nationwide • Further increased our Emerging Business and Bumi sales force • Opened one new branch in Ijok, Selan
Slide 23: Update on International Expansion
Update on International Expansion Vietnam • Sustained strong revenue growth of > 100% through successful penetration of the top tier state-owned-enterprises and network clients International • Sustained double-digit revenue growth, driven by loan growth primarily in Greater China, and treasury activ
Slide 24: Agenda
Agenda • Recap of New Horizons lll • Progress against New Horizons lll • Balanced Business Scorecard • Customer Experience • International Expansion • Leveraging on Group Synergies • Conclusion 24
Slide 25: Leveraging on Group Synergies (Recap)
Progress against New Horizons lll:- Leveraging on Group Synergies (recap) Differentiate OCBC by further leveraging on synergies among the entities within the Group, which include OCBC Malaysia, OCBC Al Amin, OCBC NISP, OCBC China, Great Eastern, Lion Global, Bank of Singapore, OCBC Securities, and P
Slide 26: Update on Group Synergy Initiatives in 2011
Update on Group Synergy Initiatives in 2011 Broadening our relationships with our customers • Good momentum on the cross-sell between Group entities as they gained greater understanding of each other’s offerings, aligned processes and put in mechanisms to track progress • Greater focus on serving th
Slide 27: Update on Group Synergy Initiatives in 2011
Update on Group Synergy Initiatives in 2011 Enhance operational effectiveness through common corporate resources • Continued to align risk / compliance practices and capabilities across geographies and subsidiaries • Facilitated the knowledge transfer of Quality and Customer Experience concepts acro
Slide 28: In a Nutshell
In a Nutshell • We continued to improve our performance through the balanced business scorecard • We made good progress in building capabilities to deliver a differentiated customer experience • We maintained our focus on strengthening our presence in our New Horizons countries of Singapore, Malaysi
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