Oversea-chinese Banking Corporation Limited · SGX:O39
Oversea-chinese Banking — H1 2001 Earnings Presentation
15 slides from Oversea-chinese Banking's earnings presentation, Aug 3, 2001
Slide 1: 2001 Interim Results: CEO's Address
2001 Interim Results CEO’s Address by Alex Au 3 August 2001 1
Slide 2: Restructuring Continues
Restructuring Continues Further Strengthening of Senior Management Team and the Board April Tan Eng Huat appointed Head, Global Treasury Patricia Eng appointed General Counsel, Legal Philip Spencer appointed COO, BOS May Dr Michael Fam retires from the Board June Duncan Edwards appointed Head, Group
Slide 3: Superior Customer Experience
Superior Customer Experience ■ Upgrading customer service ◆ Continued renovation of OCBC branches ◆ Launched OCBC PhoneBank in Malaysia in March ■ Strengthening OCBC’s link with customers ◆ Branding campaign launched in March ■ Meeting customers’ needs ◆ Launched revised home loan package in April ◆
Slide 4: Progress on M&As and Capital Management
Progress on M&As and Capital Management Restructuring / M&A initiatives ◆ Completed acquisition of UBS Warburg & Associates (Singapore) in May ◆ Completed privatisation of OCBC Finance in May ◆ Announced general offer for KCH in June On-going capital management ◆ Launched S$500 million share buy-bac
Slide 5: KCH Integration
KCH Integration Integration will be a key priority over the next 18 months Guiding Principles: ◆ Careful planning, swift execution to minimise uncertainty ◆ Minimise inconvenience to customers, maintain high standards of service -> minimise customer attrition ◆ Clear and effective communication ◆ Re
Slide 6: Commitment To Shareholder Value - OCBC's Guiding Principle
Commitment To Shareholder Value - OCBC’s Guiding Principle ■ What matters most in M&A is the ability to deliver superior customer service and shareholder returns ■ OCBC will focus on integrating KCH effectively to derive maximum benefits for shareholders, customers and employees ■ Any future M&A, di
Slide 7: Review of 2001 Interim Results
Review of 2001 Interim Results by Chris Matten CFO 3 August 2001 7
Slide 8: Four Key Themes
Four Key Themes ■ Turnaround in operating profit ■ Income remained resilient despite weak operating environment ■ Expenses were kept under control ■ Provisions rose due to less GP write-backs and diminution in value of other assets 8
Slide 9: Improvement Over 2nd Half 2000
Improvement Over 2nd Half 2000 1H00 2H00 1H01 YoY HoH S$m S$m S$m % % Operating income 845 882 896 6 2 Operating profit 557 514 534 (4) 4 Net profit 445 395 433 (3) 10 Adjustments: Associates' profits 108 113 158 46 40 Less: Non-recurrent gains 0 45 ** 56 * Adjusted associates' profits 108 68 102 (6
Slide 10: Resilient Income
Resilient Income 1H00 2H00 1H01 YoY HoH S$m S$m S$m % % Net interest income 624 636 653 5 3 Fees & commissions 137 119 127 (8) 7 Stockbroking 37 27 26 (29) (4) Non-stockbroking 100 92 101 1 9 Ave loan balances 32,033 32,632 35,676 11 9 Net interest margin 2.36 2.31 2.27 -9 bps -4 bps 10
Slide 11: Expenses Under Control
Expenses Under Control $368m $363m $72m Total $288m $97m Others $65m $83m $79m Premises & Equipment $65m $208m $192m Staff Costs $158m 1H00 2H00 1H01 Cost/Income 34.1% 41.7% 40.4% 11
Slide 12: Prudent Provisioning
Prudent Provisioning 1H00 2H00 1H01 YoY HoH S$m S$m S$m % % SPs for loans 89 155 100 13 (35) GPs for loans (45) (96) (12) (74) (88) SPs for diminution in value of other assets 10 27 37 263 37 Total provisions 54 85 125 132 47 Provisions rose due to : * Lower GP write-backs * Higher SPs for diminutio
Slide 13: Improving Asset Quality
Improving Asset Quality 14.2% Global NPL ratio 13.3%13.3% 13.7% S'pore NPL ratio 11.5% 10.6% 10.7% 8.9% Dec 99 Jun 00 Dec 00 Jun 01 13
Slide 14: Loan Growth Sustained
Loan Growth Sustained Loans (S$b) Loan growth YoY (%) 37.0 20 36.0 15 35.0 10 34.0 5 33.0 0 32.0 -5 31.0 -10 30.0 -15 Dec-99 Jun-00 Dec-00 Jun-01 Loans Loan growth 14
Slide 15: Integration - Financials
Integration - Financials ■ Pro-forma total CAR of 16.9% and Tier 1 of 9.9% for OCBC-KCH as at 30 June 2001 ■ KCH’s accounts to be consolidated from date of first payment to KCH shareholders (within 21 days after offer becomes unconditional) ■ Restructuring charge of S$120m ◆ accounting treatment to
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