Oversea-chinese Banking Corporation Limited · SGX:O39
Oversea-chinese Banking — Q1 2021 Earnings Presentation
24 slides from Oversea-chinese Banking's earnings presentation, May 7, 2021
Slide 1: First Quarter 2021 Results Highlights
First Quarter 2021 Results Highlights 7 May 2021 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: Agenda
Agenda Financial Highlights Group Performance Trends 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 to stated to
Slide 3: 1Q21 Net Profit at a High of S$1.50b
Performance review 1Q21 Net Profit at a High of S$1.50b Results underscored strength of our well-diversified franchise ❑ Strong earnings across core markets and businesses • Net profit for banking operations at S$1.13b • All overseas banking subsidiaries reported improved QoQ earnings • GEH’s net pr
Slide 4: 1Q21 Financial Highlights
Group performance 1Q21 Financial Highlights 1Q21 ROE improved to 12.4% Group Net Profit Operating Profit by Geography (S$m) 115% 33% Others 1,501 Singapore 6% Greater 373 China 1Q21 1,131 21% 7% 288 4Q20 698 21% 18 44% 1,128 54% 8% 842 6% 680 Indonesia 20% 13% 1Q20 4Q20 1Q21 Banking Insurance Malays
Slide 5: 1Q21 Financial Highlights
Group performance 1Q21 Financial Highlights Solid business fundamentals delivered strong earnings momentum Banking Wealth Management Net Profit Total NPA Coverage Group Wealth Management Bank of Singapore’s AUM (S$m) 66% YoY Income (S$m)1/ (US$b) 18% YoY 34% QoQ 59% YoY 28ppt YoY 1% QoQ 40% QoQ 3ppt
Slide 6: Strong Balance Sheet Fundamentals
Balance sheet Strong Balance Sheet Fundamentals Robust funding, liquidity and capital buffers Funding Liquidity Capital • Nearly 80% from customer deposits • Sound liquidity position • Strong capital base • NSFR at 125% • LCR well above minimum required • Leverage ratio at 7.8% Composition (S$b) LCR
Slide 7: 1Q21 Group Performance
Group performance 1Q21 Group Performance Net profit driven by broad-based income growth and lower allowances 1Q21 4Q20 QoQ 1Q20 YoY OCBC Group S$m S$m +/(-)% S$m +/(-)% Net interest income 1,441 1,436 – 1,626 (11) Non-interest income 1,473 1,049 40 864 70 Total income 2,914 2,485 17 2,490 17 Operati
Slide 8: 1Q21 Banking Operations Performance
Banking Ops performance 1Q21 Banking Operations Performance Banking Operations’ net profit rose to a high of S$1.13b 1Q21 4Q20 QoQ 1Q20 YoY Banking Operations S$m S$m +/(-)% S$m +/(-)% Net interest income 1,417 1,414 – 1,595 (11) Non-interest income 931 747 25 778 20 Total income 2,347 2,161 9 2,373
Slide 9: Agenda
Agenda Financial Highlights Group Performance Trends 9
Slide 10: Net Interest Income
Net interest income Net Interest Income 1Q21 NIM steady at 1.56% from continued optimisation of the funding base 1.76% NIM 1.60% 1.54% 1.56% 1.56% 1,626 1,483 1,441 1,421 1,436 S$m 1Q20 2Q20 3Q20 4Q20 1Q21 10
Slide 11: Non-interest Income
Non-interest income Non-interest Income Broad-based growth across customer segments 50.6% 44.0% As % of 43.5% 42.2% Group income 34.7% 1,473 1,142 1,118 470 1,049 282 264 71 864 196 S$m 63 57 37 157 316 118 255 264 18 325 31 25 41 35 32 546 501 517 585 440 1Q20 2Q20 3Q20 4Q20 1Q21 Net fees & Dividen
Slide 12: Wealth Management Franchise
Wealth management Wealth Management Franchise WM income at S$1.21b; private banking AUM rose to US$123b Total Wealth Management Income Bank of Singapore’s Assets Under Management 41% 123 As % of 36% 38% 121 Group 35% income 31% 116 1,207 113 954 969 862 567 760 S$m 434 399 1/ 104 117 325 US$b 643 57
Slide 13: Net Fees & Commissions
Non-interest income Net Fees & Commissions Fee income rose 13% QoQ and 7% YoY to S$585m; WM fees at a high 585 546 501 517 68 69 23 23 440 71 71 S$m 13 28 108 111 60 23 110 111 65 52 100 55 57 52 291 321 252 250 205 1Q20 2Q20 3Q20 4Q20 1Q21 Loan, Trade, Investment Banking Wealth Management Brokerage
Slide 14: Trading Income
Non-interest income Trading Income Trading income driven by higher customer flow treasury income 325 316 264 255 86 S$m 159 82 92 18 230 157 166 173 172 (139) 1Q20 2Q20 3Q20 4Q20 1Q21 Customer Flow Non-Customer Flow 14
Slide 15: Operating Expenses
Operating expenses Operating Expenses Operating expenses 2% higher QoQ; CIR at 39.4% 44.5% 43.2% 45.3% CIR 42.2% 39.4% 1,109 1,107 1,125 1,149 1,098 191 227 192 198 212 208 206 S$m 216 214 224 710 693 672 674 751 1Q20 2Q20 3Q20 4Q20 1Q21 Staff costs Property & equipment Others 15
Slide 16: Allowances
Allowances Allowances Decline in allowances reflected improving economic environment Credit costs 86 97 on total loans 47 39 22 (bps) 1/ 66 Credit costs 36 32 on impaired 20 21 loans (bps) 1/ 750 657 232 S$m 382 350 285 518 202 48 161 275 237 9 148 152 1Q20 2Q20 3Q20 4Q20 1Q21 Allowances for impaire
Slide 17: Total Cumulative Allowances
Allowances Total Cumulative Allowances NPA coverage ratio further increased to 118% 109% 115% 118% 101% Total NPA 90% coverage 4,618 4,763 4,596 4,384 3,953 874 874 874 874 874 S$m 1,863 1,914 1,668 1,907 1,440 1,842 1,881 1,815 1,975 1,639 Mar 20 Jun 20 Sep 20 Dec 20 Mar 21 Allowances for impaired
Slide 18: Asset Quality
Asset quality Asset Quality NPL ratio stable QoQ at 1.5% 1.6% 1.6% Total 1.5% 1.5% 1.5% NPL ratio 4,386 4,351 4,255 283 122 4,005 4,027 100 546 530 496 88 89 295 484 476 255 357 358 324 682 723 692 S$m 651 689 751 817 870 755 892 1,869 1,864 1,740 1,669 1,557 Mar 20 Jun 20 Sep 20 Dec 20 Mar 21 Singa
Slide 19: Asset Quality
Asset quality Asset Quality Total NPAs at S$4.03b S$m 1Q20 4Q20 1Q21 At start of period 3,883 4,255 4,005 New NPAs Corporate/ Commercial Banking and Others 481 160 144 Consumer Banking/ Private Banking 156 136 231 637 296 375 Net recoveries/ upgrades Corporate/ Commercial Banking and Others (51) (90
Slide 20: Customer Loans
Loans Customer Loans Loans rose QoQ and YoY to S$271b Loans by Geography (S$b) +0.2% YoY (+1% in constant ccy terms) Greater China Loans (S$b) +1% QoQ (+1% in constant ccy terms) NPL 0.4% 0.4% 0.5% 0.5% 0.5% 271 271 ratio 268 269 267 68 67 67 65 67 45 43 44 45 48 4 4 4 4 2 3 2 4 2 2 68 67 67 65 67 3
Slide 21: Customer Loans
Loans Customer Loans Loan portfolio remained well-diversified with limited sector concentration Loans by Industry (S$b) 271 267 14% 14% Corporate, SME and Consumer/Private Banking comprise 51%, 9% and 6% 40% of loan book respectively 6% 11% 11% O&G sector comprise 4% of loan book (within which, 1% w
Slide 22: Loan Relief Update
Relief Programmes Loan Relief Update Healthy repayment profiles observed for the relief loans portfolio 31 Jan 2021 31 Mar 2021 Total Loans under 91% secured 92% secured 5.7 5.1 Moratorium (S$b) % of Group Loans 2% 2% % of % % of % By Geography (S$b) country loans secured country loans secured Singa
Slide 23: Customer Deposits
Deposits Customer Deposits CASA deposits grew QoQ and YoY to S$195b; CASA ratio improved to 61.8% 85.1% 85.4% 86.2% 84.7% Group LDR 83.7% 314 310 307 315 316 25 27 28 30 31 95 90 129 108 97 S$b 61.8% 59.2% 60.3% 56.7% 51.0% 182 190 195 160 175 Mar 20 Jun 20 Sep 20 Dec 20 Mar 21 CASA Fixed Deposits O
Slide 24: Thank You
First Quarter 2021 Results Highlights Thank You
Oversea-Chinese Banking — Q1 2021 Earnings Presentation on 6ix