Oversea-chinese Banking Corporation Limited · SGX:O39
Oversea-chinese Banking — Shareholder Meeting (May 2020)
30 slides from Oversea-chinese Banking's shareholder meeting presentation, May 18, 2020
Slide 1: 83rd Annual General Meeting
83RD ANNUAL GENERAL MEETING 18 May 2020
Slide 2: Agenda
Agenda Macro- 2019 Response to Looking Economic Performance COVID-19 Ahead Environment Highlights 2
Slide 3: Global Macro-Economic Outlook
Global Macro-Economic Outlook Sharp Contraction in Output and Trade GDP 2019 2020 Global +2.9% -3.0% United States +2.3% -4.0% China +6.1% +3.5% European Union +1.5% -7.0% Global Trade -0.1% -15% to -30% Sources: IMF, WTO, IATA, IEA, OCBC 3
Slide 4: Contractionary in Our Core Markets
Contractionary in Our Core Markets GDP 2019 2020 Singapore +0.7% -6.0% Malaysia +4.3% -1.0% Indonesia +5.0% +1.0% Hong Kong -1.2% -5.0% Sources: IMF, WTO, IATA, IEA, OCBC 4
Slide 5: Unprecedented Policy Stimulus
Unprecedented Policy Stimulus Deficit to-date % of GDP (US$b) USA 2,008 10.0% China 514 3.4% Japan 1,100 20.4% Germany 823 20.6% UK 492 18.2% France 369 13.7% Singapore 41 12.0% Malaysia 63 16.4% Indonesia 34 2.8% Hong Kong 37 9.6% Sources: OCBC, Bloomberg, CEIC 5
Slide 6: Agenda
Agenda Macro- 2019 Response to Looking Economic Performance COVID-19 Ahead Environment Highlights 6
Slide 7: Continuous Support Through COVID-19
Continuous Support Through COVID-19 7
Slide 8: Employees
Employees Safeguarding our employees and empowering them to work remotely ❑ Employees are part of OCBC family, no plan on retrenchment amid this outbreak. ❑ Enhanced hygiene and precautionary measures within office premises and branches. ❑ COVID-19 Care Package for all employees. ❑ More than 20,000
Slide 9: Customers
Customers Reaching out to customers with relief programmes ❑ Offered targeted support to all retail and corporate customers across the region. In Singapore, reached out to 90% of SME customer base. ❑ Expect to extend moratorium relief and government- assisted loans of S$42 billion to over 165,000 in
Slide 10: Customers: Helping customers go digital
Customers Helping customers go digital ❑ Minimal disruption to service levels. ❑ 24 branches in Singapore and majority of branches overseas stayed open. ❑ Full network of ATMs remain operational with heightened hygiene measures. ❑ Multiple short instructions videos to guide less technology savvy cus
Slide 11: Customers: Increased adoption of digital services
Customers Increased customer adoption of digital services during this period Corporates and SMEs SME accounts PayNow Corporates SME loans opened digitally applied digitally 2.4X Numbers of accounts 7X Increase in 49% 1Q20 1Q20 vs. 1Q19 transactions vs. 1Q19 – up from 30% in 4Q19 91% of all accounts
Slide 12: Community
Community Giving back, doing our part as a member of the community ❑ S$2.2 million of donations from Bank and staff to support individuals, households and community across core markets, including: ▪ 1,000 needy Singaporean families ▪ 55,800 migrant workers in Singapore ▪ Frontline healthcare workers
Slide 13: Shareholders
Shareholders Protect franchise to generate sustainable returns to shareholders ❑ Our franchise is made up of Customers, Employees and the Community. ❑ Protecting Customer Franchise allows us to deliver long- term sustainable value to Shareholders. 13
Slide 14: Agenda
Agenda Macro- 2019 Response to Looking Economic Performance COVID-19 Ahead Environment Highlights 14
Slide 15: Long-term Sustainable Growth
Long-term Sustainable Growth Well-positioned across the Group’s key markets for diversified business growth Net Profit 8% Profit before Tax by Geography (S$b) 4.87 Others 4.49 0.83 Greater 3.90 4.04 0.60 China 6% 2019 0.64 3.47 0.86 20% 5% 2018 0.47 19% 6% 54% 5% 55% Indonesia 16% 3.89 4.04 3.26 3.1
Slide 16: Robust 2019 Performance
Robust 2019 Performance Third consecutive year of record profits 2019 2018 YoY OCBC Group S$m S$m +/(-)% Net interest income 6,331 5,890 7 Non-interest income 4,540 3,811 19 Total income 10,871 9,701 12 Operating expenses (4,644) (4,214) 10 Operating profit 6,227 5,487 13 Associates 566 455 24 Opera
Slide 17: Diversified Business Franchise: Banking
Diversified Business Franchise Banking Franchise – strong interconnected framework Well-placed to connect our customers to opportunities within Asia and globally ❑ Broad geographical footprint in North and Southeast Asia, with a highly-connected international network. ❑ Well-entrenched Greater China
Slide 18: Diversified Business Franchise: Wealth Management
Diversified Business Franchise Wealth Management Franchise Growing from strength-to-strength ❑ Major acquisitions from 2010: ING Asia Private Bank in 2010, Barclays Wealth and Investment Business (SG and HK) in 2016 and National Australia Bank’s Wealth Business (SG and HK) in 2017. ❑ Established a n
Slide 19: Diversified Business Franchise: Insurance
Diversified Business Franchise Insurance Franchise Committed to delivering innovative solutions and empowering customers ❑ Strong partnership across OCBC Group to capture growth opportunities and expand our regional footprint. ❑ Strengthened distribution capabilities through digital platforms to pro
Slide 20: Customer Loans and Deposits
Customer Loans and Deposits Loans well-diversified across geographies; Deposits well-supported by CASA growth Customer Loans by Geography Customer Deposits CAGR 6% CAGR 5% 3% 3% S$b S$b 258 265 295 303 237 284 220 42 246 261 27 27 211 36 26 31 14 21 26 20 64 65 129 54 59 118 132 56 114 19 20 20 106
Slide 21: Asset Quality
Asset Quality Portfolio quality remained stable Non-Performing Assets and NPL ratio 1.3% 1.5% 1.5% 1.5% Total NPL ratio 0.9% 0.9% 0.9% 0.8% of which: 0.6% 0.4% O&G NPL ratio 3,938 3,883 3,468 100 45 700 520 Debt securities / 53 Contingent liabilities 2,886 652 230 261 Rest of the World 103 677 NPLs
Slide 22: Strong Balance Sheet Fundamentals
Strong Balance Sheet Fundamentals Robust funding, liquidity and capital position to withstand market volatility Funding Liquidity Capital • Nearly 80% from customer deposits • Sound liquidity position • Strong capital base • Stable NSFR at 111% • LCR well above minimum required • Healthy leverage ra
Slide 23: Progressive and Sustainable Dividends
Progressive and Sustainable Dividends 2019 dividend up 10 cents or 23% to 53 cents per share; payout ratio raised to 47% 43% 47% 38% 37% 40% Dividend Payout Ratio 53 43 DPS (cents) 36 36 37 28 Final dividend 23 Interim dividend 18 18 19 25 18 18 18 20 2015 2016 2017 2018 2019 23
Slide 24: Agenda
Agenda Macro- 2019 Response to Looking Economic Performance COVID-19 Ahead Environment Highlights 24
Slide 25: OCBC Well-positioned Despite Uncertainties Ahead
OCBC Well-positioned Despite Uncertainties Ahead Priority to support customers during this pandemic ❑ Health crisis leading to a global economic crisis. Extent of economic fallout very uncertain, recovery unlikely until 2021 at earliest. ❑ Crisis likely to spread out over 2020 and 2021. Watchful of
Slide 26: Committed to Long-term Sustainable Growth
Committed to Long-term Sustainable Growth Building a sustainable future for our stakeholders ❑ Maintain long-term strategy. Well-diversified customer franchise and earnings base with strong capital, liquidity and funding positions. ❑ Confident of OCBC’s strong track record of delivering sustainable
Slide 27: Continued Focus on Executing Corporate Strategy
Continued Focus on Executing Corporate Strategy Deepen Presence in Core Markets A leading Asian financial services group with a broad geographical footprint in North and Southeast Asia. A resilient and diversified business that generates sustainable long-term value for shareholders, customers, staff
Slide 28: Capture New Business Opportunities as They Arise
Capture New Business Opportunities as They Arise Well-Positioned to Navigate Through Key Global Megatrends Shaping Asia’s Growth Increasing Growing Rising Dominance of Silver and Gig Asian Wealth China Economies Digital Rising Focus on Prominence Protectionism Sustainability and Threats and Populism
Slide 29: Do Well and Do Good
Do Well and Do Good Anchor on our core values For almost 90 years, OCBC has earned a well-deserved reputation for a deep-seated culture of Responsible Banking and Fair Dealing, Honesty and Integrity in the conduct of our business, and always putting customers first. For all Stakeholders – our Employ
Slide 30: 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. These statements involve risks and uncertainties and should not be so
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