Oversea-chinese Banking Corporation Limited · SGX:O39
Oversea-chinese Banking — Q3 2024 Earnings Presentation
20 slides from Oversea-chinese Banking's earnings presentation, Nov 8, 2024
Slide 1: Third Quarter 2024 Results Highlights
Third Quarter 2024 Results Highlights Goh Chin Yee, Group Chief Financial Officer 8 November 2024 OCBC Financial Results
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
Slide 3: Strong 3Q24 earnings
Performance highlights Strong 3Q24 earnings YoY QoQ Total Income S$3.80b +11% +5% ■ 3Q24 Group net profit up on Group +9% YoY record income, driven by S$1.97b Net Interest Income (NII) -1% unchanged Net Profit +2% QoQ Non-Interest Income (Non-II) +41% +14% strong Non-II growth +18% YoY Operating Exp
Slide 4: Record 9M24 Group and Banking Operations net profit
Performance overview Record 9M24 Group and Banking Operations net profit Group Performance Banking Operations Performance (S$m) 9M24 YoY 3Q24 YoY QoQ 9M24 YoY 3Q24 YoY QoQ Net Interest Income 7,300 +2% 2,433 -1% – 7,174 +1% 2,390 -1% – Non-Interest 3,758 +23% 1,369 +41% +14% 2,673 +22% 1,035 +42% +2
Slide 5: Resilient performance across franchise
Performance highlights Resilient performance across franchise Banking Wealth Management ■ Banking Operations net Net Profit (S$m) NII and Fee Income (S$m) WM Income (S$m) 1/ WM AUM (S$b) profit higher QoQ and YoY +3% +0.3% 33% 35% 34% +5% +1% +1% +2% ■ Group WM income and +15% +2% AUM up QoQ and YoY
Slide 6: Well-diversified earnings across business and geography
Performance review Well-diversified earnings across business and geography Operating Profit by Business Operating Profit by Geography Others Others Insurance 4% 7% 15% 7% 9M24 Greater China 6% 9M24 12% 19% Global 1% 9M23 21% 9M23 Markets 7% Global Wholesale 53% 47% Banking 27% Indonesia 5% 6% 56% 57
Slide 7: Strong balance sheet position to support growth
Balance sheet Strong balance sheet position to support growth Loans-to-Deposits Ratio Funding ■ Well-balanced funding Composition (%) structure, mainly anchored Group LDR (%) by customer deposits Customer deposits 12% Bank deposits Debts issued 7% ■ Maintained robust balance S$470b Capital and reser
Slide 8: Group Performance Trends
Agenda 01 Financial Highlights 02 Group Performance Trends 8
Slide 9: 9M24 NII up YoY, 3Q24 NII steady QoQ
Net interest income 9M24 NII up YoY, 3Q24 NII steady QoQ 1Q22 9M24 YoY 3Q24 +44% 2Q23 YoY -1% 2.27% 2.29% 2.27% 2.20% 2.18% 2.28% 2.22% YoY +2% QoQ +44% QoQ unchanged Net Interest Margin 7,183 7,300 ■ 9M24 NII rose to a record high, supported by 4% rise in average assets from increase 2,456 2,462 in
Slide 10: 3Q24 Non-II up 41% YoY
Non-interest income 3Q24 Non-II up 41% YoY 9M24 YoY 3Q24 +44% 2Q23 YoY +41% 32.8% 33.0% 36.0% 29.8% 34.0% YoY +23% QoQ QoQ +44% +14% 28.4% 24.8% % of Group Income 3,758 ■ 9M24 Non-II surged to an all-time high, driven by 815 broad-based growth 3,051 255 ■ 3Q24 Non-II up YoY 719 supported by increase
Slide 11: Robust fee income growth
Non-interest income Robust fee income growth 9M24 YoY 3Q24 +44% 2Q23 YoY +10% YoY +8% QoQ QoQ +44% +9% 1,454 ■ 3Q24 fee income up QoQ 1,344 and YoY, led by wealth 200 management, investment 225 81 banking and loan-related Net Fees & Commissions (S$m) 71 fees Others 2/ 368 479 466 508 363 ■ Wealth ma
Slide 12: 9M24 trading income crossed S$1 billion for first time
Non-interest income 9M24 trading income crossed S$1 billion for first time 9M24 YoY 3Q24 +44% 2Q23 YoY +135% 1,234 YoY +58% QoQ QoQ +44% +43% ■ Strong growth in 9M24 and 386 3Q24 trading income underpinned by record customer flow income and 783 increased non-customer flow 179 income 508 Trading Inco
Slide 13: 9M24 Cost-to-income ratio at 37.8%
Operating expenses 9M24 Cost-to-income ratio at 37.8% 9M24 YoY 3Q24 +44% 2Q23 YoY +9% YoY +7% QoQ QoQ +44% +7% 39.1% 40.0% 37.8% 38.5% 38.2% 37.8% 37.1% Cost-to-income (CIR) ■ 9M24 and 3Q24 CIR down 4,182 YoY on positive operating 3,913 jaws 590 585 ■ YoY rise in 3Q24 operating 754 expenses largely
Slide 14: Benign asset quality, NPL ratio at 0.9%
Asset quality Benign asset quality, NPL ratio at 0.9% YoY YoY -0.1ppt +44% Sep 24 2Q23 Non-performing assets (NPAs) 3Q23 2Q24 3Q24 9M23 9M24 QoQ QoQ +44% unchanged (S$m) At start of period 3,275 3,040 2,901 3,486 2,901 ■ NPL ratio improved YoY Corporate/ Commercial Banking and Others ■ NPAs down QoQ
Slide 15: 9M24 allowances down 12% YoY
Allowances 9M24 allowances down 12% YoY 9M24 YoY 3Q24 +44% Credit costs (bps) 1/ 2Q23 YoY -8% 17 21 16 15 22 20 17 YoY -12% QoQ QoQ +44% +17% Total 21 18 16 11 13 ■ 9M24 total credit costs at 6 Impaired (0) an annualised 17bps 546 ■ 3Q24 allowances up QoQ 483 from higher allowances set aside for non
Slide 16: NPA coverage ratio higher at 164%
Allowances NPA coverage ratio higher at 164% YoY YoY +7% +44% 164% Sep 24 2Q23 139% 151% 146% 155% QoQ +2% QoQ +44% Total NPA coverage ■ NPA coverage ratio lifted 4,492 4,587 from a decline in NPAs 4,382 4,438 4,296 455 and higher allowances 455 455 455 455 taken Cumulative allowances (S$m) Regulato
Slide 17: Loans grew QoQ and YoY to S$305b
Loans Loans grew QoQ and YoY to S$305b Loans by Geography Loans by Industry Sep 24 YoY YoY +4% +44% (in 2Q23 constant +4% QoQ +2% QoQ +44% (S$b) in constant ccy terms +2% ccy terms) (S$b) in constant ccy terms 301 304 305 27b 298 297 19b 9% 6% 67b ■ Loans up 4% YoY in constant 60 60 62 64 63 14b 22%
Slide 18: Deposits lower QoQ from decline in fixed deposits
Deposits Deposits lower QoQ from decline in fixed deposits YoY YoY +44% unchanged 80.5% 80.3% 81.1% 81.6% Sep 24 2Q23 Group LDR 79.7% QoQ -0.1% QoQ +44% 81.6% 80.9% 81.4% 83.0% 76.4% ■ Total deposits down QoQ, SGD LDR mainly due to drop in higher-cost fixed deposits 53.3% 49.2% 50.5% 49.8% 48.1% USD
Slide 19: Solid capital position
Capital Solid capital position 1/ 17.2 Transitional YoY YoY +2.4ppt +44% 2/ uplift from Sep 24 2Q23 1.6 final Basel III QoQ QoQ +44% +1.7ppt reforms ■ CET1 CAR up QoQ, as CET1 CAR 15.9 16.2 15.6 2/ 1/ based on fully drop in RWA and 3Q24 CET1 CAR (%) 14.8 15.5 phased-in final profit accretion more th
Slide 20: 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
Oversea-Chinese Banking — Q3 2024 Earnings Presentation on 6ix