Oversea-chinese Banking Corporation Limited · SGX:O39
Oversea-chinese Banking — Q1 2020 Earnings Presentation
19 slides from Oversea-chinese Banking's earnings presentation, May 8, 2020
Slide 1: First Quarter 2020 Results Highlights
First Quarter 2020 Results Highlights 8 May 2020 OCBC Financial Results 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. These s
Slide 2: Resilient 1Q20 Performance
Performance review Resilient 1Q20 Performance Diversified business franchise continues to drive long-term sustainable earnings ❑ Banking Operations operating profit up YoY, but net profit down from higher allowances ❑ Insurance TWNS and NBEV up YoY; however insurance profit lower due to unrealised M
Slide 3: Agenda
Agenda Financial Highlights Group Chief Executive Officer Update Note: - Certain comparative figures have been restated to conform with the current period’s presentation. - Amounts less than S$0.5m are shown as “0”; - “nm” denotes not meaningful; - “na” denotes not applicable; - Figures may not sum
Slide 4: 1Q20 Financial Highlights
Group Performance 1Q20 Financial Highlights Group revenue down 7%; banking revenue up 7% YoY. Group net profit down 43% YoY, from lower insurance income and increase in allowances Net Profit Sustainable Earnings Total Income (S$m) Net Interest Margin (S$m) 2,676 2,490 43% 468 117 7% flat 2,208 2,373
Slide 5: Diversified Business Franchise
Diversified Business Diversified Business Franchise Banking, wealth management and insurance continue to deliver diversified and sustainable long-term growth Banking Operating Profit (S$m) Income (S$m) Expenses (S$m) 8% 2,373 7% 5% 1,369 1,477 2,208 1,015 1,061 1Q19 1Q20 1Q19 1Q20 1Q19 1Q20 Allowanc
Slide 6: Fee and Trading Income
Non-interest Income Fee and Trading Income Net Fees & Commissions Trading Income • Fee income higher YoY led by wealth management • Treasury-related customer flow income up YoY and QoQ and brokerage • Non-customer flow income lower from unrealised MTM 556 546 losses in GEH’s investment portfolio 495
Slide 7: Customer loans
Loans Customer loans Well-diversified loan book; limited sector concentration Loans by Industry (S$b) Loan book well-diversified across geographies Corporate, SME and Consumer comprise 49%, 11% and 40% of loan book respectively Limited sector concentration O&G sector comprise 5% of loan book Commodi
Slide 8: Allowances and Asset Quality
Allowances and asset quality Allowances and Asset Quality Prudent allowances made. Portfolio quality remained sound Allowances NPAs by Geography 2/ 86 Total credit 35 1.5% 1.5% 1.5% costs (bps) 1/ 27 Total NPL General ratio Specific 32 36 36 allowances allowances buffer O&G NPL 0.9% 0.8% 0.8% credit
Slide 9: Solid Balance Sheet
Funding Solid Balance Sheet Robust balance sheet fundamentals, supported by strong levels of capital, funding and liquidity, to ride through current market uncertainties Funding Liquidity Capital • Nearly 80% from customer deposits • Sound liquidity position • Strong capital base • Stable NSFR at 10
Slide 10: 1Q20 Group Performance
Group performance 1Q20 Group Performance Net profit down 43% YoY to S$698m, attributed to unrealised MTM losses in the insurance business and increased allowances 1Q20 1Q19 YoY 4Q19 QoQ OCBC Group S$m S$m +/(-)% S$m +/(-)% Net interest income 1,626 1,534 6 1,610 1 Non-interest income 864 1,142 (24)
Slide 11: 1Q20 Banking Operations Performance
Banking Ops performance 1Q20 Banking Operations Performance Banking Operations operating profit before allowances up 8% YoY and 3% QoQ; 1Q20 net profit lower from increase in general allowances 1Q20 1Q19 YoY 4Q19 QoQ Banking Operations S$m S$m +/(-)% S$m +/(-)% Net interest income 1,595 1,510 6 1,58
Slide 12: Great Eastern Holdings’ performance
Great Eastern Great Eastern Holdings’ performance 1Q20 net profit contribution lower YoY at S$18m, from unrealised MTM losses attributed to unfavourable investment markets YoY QoQ S$m 1Q20 1Q19 4Q19 +/(-)% +/(-)% Profit from insurance business 115 240 (52) 260 (56) - Operating profit 299 149 101 173
Slide 13: Insurance operations under Great Eastern impacted by market volatility
Great Eastern Insurance operations under Great Eastern impacted by market volatility Profit from Insurance Business Profit from Shareholders’ Fund 76 148 225 237 S$m S$m 64 76 127 62 299 Lower YoY mainly from: 173 • MTM losses 149 69 of -S$413m 43 • partially 21 (7) offset by reduction in Lower YoY
Slide 14: Agenda
Agenda Financial Highlights Group Chief Executive Officer Update 14
Slide 15: OCBC well-positioned for this unprecedented crisis
Business Outlook OCBC well-positioned for this unprecedented crisis Focus on protection of customer franchise for long-term sustainable growth ❑ Extent of economic fallout very uncertain, recovery unlikely until 2021 at earliest; watchful of impact to near-term earnings growth ❑ Maintain long-term s
Slide 16: Supporting employees, customers and the community
Do Well, Do Good Supporting employees, customers and the community Employees Customers Community ❑ Employees are part of ❑ Offered targeted support to ❑ Over S$2.2 million of OCBC family, no plan on all retail and corporate donations to support retrenchment amid this clients across the region. indiv
Slide 17: Rapid business enablement to ensure business continuity and long-term sustainability
Digital Enablers Rapid business enablement to ensure business continuity and long-term sustainability Empowering Staff Branch Network & Helping Customers to Work Remotely Digital Channels Go Digital ❑ >18,000 staff enabled to ❑ Minimal disruption to ❑ Digital Ambassadors at work from home. service l
Slide 18: Enhanced capabilities facilitated increased adoption of digital services
Digital Acceleration Enhanced capabilities facilitated increased adoption of digital services during this period Corporates and SMEs SME accounts PayNow Collections SME loans applied opened digitally Corporates digitally 2.4X Numbers of accounts, 7X Increase in 49% 1Q20 1Q20 vs. 1Q19 transactions vs
Slide 19: Thank You
First Quarter 2020 Results Highlights Thank You
Oversea-Chinese Banking — Q1 2020 Earnings Presentation on 6ix