Oversea-chinese Banking Corporation Limited · SGX:O39
Oversea-chinese Banking — Q1 2007 Earnings Presentation
25 slides from Oversea-chinese Banking's earnings presentation, May 9, 2007
Slide 1: First Quarter 2007 Results Presentation
First Quarter 2007 Results Presentation 9 May 2007
Slide 2: Agenda
Agenda • Results Overview • Performance Trends • Results of Key Subsidiaries • Conclusion 2
Slide 3: Core Net Profit Up 60% YoY
Core Net Profit Up 60% YoY 1Q07 1Q06 YoY 4Q06 QoQ S$m S$m +/(-)% S$m +/(-)% Net Interest Income 508 395 29 491 4 Non-Interest Income 506 348 45 412 23 Total Income 1,014 743 36 903 12 Operating Expenses (352) (308) 14 (342) 3 Operating Profit 662 435 52 561 18 Amortisation of Intangibles (12) (10) 1
Slide 4: Key Financial Ratios – Excluding Divestment Gains, Tax Refund
Key Financial Ratios – Excluding Divestment Gains, Tax Refund 1Q07 4Q06 1Q06 % % % Net Interest Margin 2.04 2.03 1.89 Non-Interest Income/ Total Income 49.9 45.7 46.8 Cost-to-Income Ratio 34.7 37.9 41.5 Loans-to-Deposits Ratio 78.9 79.0 84.6 NPL Ratio 2.7 3.0 4.1 Cumulative Allowances/ NPLs 101.6 10
Slide 5: Agenda
Agenda • Results Overview • Performance Trends • Results of Key Subsidiaries • Conclusion 5
Slide 6: Continued Growth in Net Interest Income, Stable Interest Margins
Continued Growth in Net Interest Income, Stable Interest Margins 2.04% 2.06% 2.03% 2.04% 2.00% 2.00% Net 1.84% 1.89% interest margin 1,794 1,597 508 491 473 435 395 Net interest income (S$m) 508 2005 2006 1Q07 1Q06 2Q06 3Q06 4Q06 1Q07 6
Slide 7: Non-Interest Income Boosted by Favourable Market Conditions
Non-Interest Income Boosted by Favourable Market Conditions 49.9% 49.9% Non- 46.8% 45.7% 44.7% 44.7% interest 43.1% 43.0% income/ 598 Total 2,045 income 845 92 598 495 515 506 1,289 1,448 83 348 357 412 Non- interest income 329 (S$m) 598 92 506 2005 2006 1Q07 1Q06 2Q06 3Q06 4Q06 1Q07 Divestment gain
Slide 8: Fee Income up 27% YoY
Fee Income up 27% YoY 18.9% 18.5% 18.7% 18.4% Fee 17.6% 17.8% 17.5% 17.5% income/ Total 597 income 178 507 161 155 140 141 Fee income (S$m) 178 2005 2006 1Q07 1Q06 2Q06 3Q06 4Q06 1Q07 Excluding divestment gains 8
Slide 9: Expenses Under Control
Expenses Under Control 45.6% Cost-to- 41.1% 41.5% Income 39.6% 40.0% Ratio 37.9% 1,331 34.7% 34.7% 1,145 332 349 342 352 333 278 308 87 87 83 277 89 Operating 68 233 Expenses 83 62 69 (S$m) 69 64 352 722 634 83 193 200 69 170 179 179 200 2005 2006 1Q07 1Q06 2Q06 3Q06 4Q06 1Q07 Staff Cost Premises &
Slide 10: Core Operating Profit at a New Quarterly Record
Core Operating Profit at a New Quarterly Record Operating Profit before 2,508 allowances (S$m) 598 931 754 92 1,742 1,910 644 515 662 83 498 561 435 416 754 92 662 2005 2006 1Q07 1Q06 2Q06 3Q06 4Q06 1Q07 Divestment gains 10
Slide 11: Allowances Remain Low as Loan Recoveries Continue
Allowances Remain Low as Loan Recoveries Continue Allowances for loans and other assets (S$m) 12 12 2 3 0.3 0.3 (5) (7) 2005 2006 1Q07 1Q06 2Q06 3Q06 4Q06 1Q07 11
Slide 12: ROE Hits New High
ROE Hits New High 15.9% 15.9% 13.8% ROE 12.3% 11.8% 647 (%) 11.4% 10.8% 10.4% 47 2,002 510 90 795 559 481 510 1,298 77 1,443 Net Profit 379 432 (S$m) 318 647 314 90 510 2005 2006 1Q07 1Q06 2Q06 3Q06 4Q06 1Q07 Tax Refund Divestment gains Excluding divestment gains/ tax refund 12
Slide 13: Earnings Contribution by Segments
Earnings Contribution by Segments PBT by Business Segment PBT by Geography Other Asia Others Pacific Others 7% 3% 2% Other ASEAN Insurance 7% Consumer 23% Banking 23% Malaysia 25% Singapore Business 63% Banking 34% Treasury 13% 1Q07 Profit before Tax: S$666m 1Q07 Profit before Tax: S$666m (excluding
Slide 14: Loans Growth of 12% YoY, 4% QoQ
Loans Growth of 12% YoY, 4% QoQ Loans 63.3 (S$bn) 61.1 59.4 58.1 56.6 11.9 11.2 9.6 10.3 8.8 10.9 9.8 10.1 10.4 9.6 38.1 38.6 38.9 39.5 40.5 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Singapore Malaysia International 14
Slide 15: Deposits Up 21% YoY, 4% QoQ
Deposits Up 21% YoY, 4% QoQ 84.6% 81.7% 82.6% 79.0% 85.0% 78.9% Loans-to-deposits 83.2% 80.0% 81.2% 75.0% 77.8% 77.8% 78.0 75.1 65.0% 68.7 69.6 64.5 9.9 10.0 55.0% 9.5 9.2 9.0 11.2 11.7 10.8 10.6 11.0 51.8 45.0% Deposits 50.2 45.4 46.7 (S$bn) 41.1 35.0% 25.0% 15.0% Mar-06 Jun-06 Sep-06 Dec-06 Mar-07
Slide 16: NPL Ratio Improved Further to 2.7%
NPL Ratio Improved Further to 2.7% NPL Ratio 4.1% 3.6% 3.3% 3.0% 2,346 2.7% 2,096 258 1,966 1,829 1,766 NPLs 290 (S$m) 262 701 226 239 683 673 652 658 1,387 1,123 1,031 951 869 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Singapore Malaysia International 16
Slide 17: Allowances Coverage Exceeds 100%
Allowances Coverage Exceeds 100% 101% 102% 97% 94% 88% Total Allowances / NPLs 46% 48% 48% 48% 47% Specific Allowances / NPLs Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 17
Slide 18: Strong Capital Position
Strong Capital Position (%) 17.9 Total CAR 17.0 15.8 15.8 15.4 4.2 3.9 Tier 2 CAR 2.9 2.7 2.3 13.1 13.7 12.9 13.1 13.1 Tier 1 CAR (S$m) Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Tier-1 capital 9,268 9,881 9,575 10,057 10,738 Risk Weighted Assets 70,545 72,136 74,024 76,514 81,878 18
Slide 19: Agenda
Agenda • Results Overview • Performance Trends • Results of Key Subsidiaries • Conclusion 19
Slide 20: OCBC Malaysia: Operating Profit Up 29% YoY
OCBC Malaysia: Operating Profit Up 29% YoY 1Q07 1Q06 YoY 4Q06 QoQ Unaudited Results* RM m RM m +/(-)% RM m +/(-)% Net Interest Income 202 166 22 198 2 Islamic Banking Income 18 13 45 15 25 Non Interest Income 96 73 31 82 18 Total Income 316 252 26 294 8 Operating Expenses (109) (91) 20 (114) (5) Ope
Slide 21: OCBC Malaysia: Financial Ratios
OCBC Malaysia: Financial Ratios 1Q07 4Q06 1Q06 Unaudited Results* % % % Net Interest Margin 2.56 2.60 2.52 Non-Interest Income / Total Income 30.4 27.7 29.0 Cost-to-Income Ratio 34.5 38.9 36.0 RM Loans-to-Deposits Ratio 78.1 80.5 83.2 Gross NPL Ratio 5.3 5.5 6.3 Loans Growth (YTD) 3.4 9.6 1.7 ROE 23
Slide 22: GEH Contributed 23% of Core Net Profit
GEH Contributed 23% of Core Net Profit 1Q07 4Q06^ 1Q06 GEH’s Contribution to OCBC’s Results S$m S$m S$m Total Income 192 209 141 Operating Expenses (29) (18) (26) Operating Profit 164 192 114 Amortisation of Intangibles (12) (12) (10) Associates & JVs 11 - - Tax (27) (23) (19) Minority Interests (19
Slide 23: Bank NISP: 1Q07 Financials
Bank NISP: 1Q07 Financials 1Q07 1Q06 YoY 4Q06 QoQ Unaudited Results* RP bn RP bn +/(-)% RP bn +/(-)% Net Interest Income 263 200 32 266 (1) Non Interest Income 96 37 161 82 17 Expenses (221) (159) 39 (232) (5) Operating Profit 138 78 76 116 19 Allowances (23) 4 NM (31) (26) Net Profit 82 54 51 66 24
Slide 24: In Summary
In Summary • Strong revenue momentum, especially in Singapore • Good results across key geographies and business segments • Well placed to capitalise on regional growth opportunities 24
Slide 25: First Quarter 2007 Results Thank You
First Quarter 2007 Results Thank You
Oversea-Chinese Banking — Q1 2007 Earnings Presentation on 6ix