Oversea-chinese Banking Corporation Limited · SGX:O39
Oversea-chinese Banking — FY2021 Earnings Presentation
33 slides from Oversea-chinese Banking's earnings presentation, Feb 23, 2022
Slide 1: Full Year 2021 Results Presentation
Full Year 2021 Results Presentation 23 February 2022 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. The
Slide 2: Agenda
1 Financial Highlights Agenda 2 Group Performance Trends 3 Appendices: Major Subsidiaries’ Results 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
Slide 3: Resilient FY21 Performance
Performance review Resilient FY21 Performance FY21 net profit up 35% to S$4.86b on strong business momentum and improved credit environment ❑ Robust franchise of banking, wealth management and insurance businesses all performed strongly ➢ Banking operations net profit climbed 41% to S$3.93b ➢ GEH’s
Slide 4: FY21 Financial Highlights
Group performance FY21 Financial Highlights FY21 earnings back to pre-pandemic levels Group Net Profit Operating Profit by Geography (S$m) 35% Others 4,869 4,858 7% FY21 832 Greater 932 China 6% 3,586 FY20 22% Singapore Insurance 798 23% Banking 4,037 3,926 46% 2,788 8% 47% 8% 17% Indonesia FY19 FY2
Slide 5: FY21 Financial Highlights
Group performance FY21 Financial Highlights Delivering consistent and sustainable growth backed by strong business fundamentals Banking Wealth Management Net Profit NPAs (S$m) and NPL ratio Wealth Management Income 1/ Wealth Management AUM (S$m) (S$m) (S$b) 41% 1.5% 1.5% 1.5% 11% 8% 7% 3,762 3,545 3
Slide 6: Strong Balance Sheet Fundamentals
Balance sheet Strong Balance Sheet Fundamentals Robust funding, liquidity and capital positions to pursue sustained growth Funding Liquidity Capital • Around 80% from customer deposits • Sound liquidity position • Strong capital base • NSFR at 121% • LCR well above minimum required • Leverage ratio
Slide 7: Group Performance
Group performance Group Performance FY21 net profit up 35% YoY to S$4.86b, second highest on record FY21 FY20 YoY 4Q21 4Q20 YoY 3Q21 QoQ OCBC Group S$m S$m +/(-)% S$m S$m +/(-)% S$m +/(-)% Net interest income 5,855 5,966 (2) 1,492 1,436 4 1,461 2 Non-interest income 4,741 4,173 14 1,058 1,049 1 1,09
Slide 8: Banking Operations Performance
Banking Ops performance Banking Operations Performance FY21 net profit from Banking Operations increased 41% YoY FY21 FY20 YoY 4Q21 4Q20 YoY 3Q21 QoQ Banking Operations S$m S$m +/(-)% S$m S$m +/(-)% S$m +/(-)% Net interest income 5,757 5,860 (2) 1,467 1,414 4 1,437 2 Non-interest income 3,245 3,004
Slide 9: Agenda
1 Financial Highlights Agenda 2 Group Performance Trends 3 Appendices: Major Subsidiaries’ Results 9
Slide 10: Net Interest Income
Net interest income Net Interest Income 4Q21 net interest income higher at S$1.49b driven by asset growth 1.56% 1.56% 1.58% 1.61% 1.52% 1.52% 1.54% Net interest margin 5,966 5,855 1,441 1,461 1,461 1,492 1,436 Net interest income (S$m) 4Q20 1Q21 2Q21 3Q21 4Q21 FY20 FY21 10
Slide 11: Non-interest Income
Non-interest income Non-interest Income FY21 non-interest income up 14% YoY to a new high from robust customer-related business growth 50.6% 44.7% 42.2% 43.2% 42.9% 41.5% 41.2% As % of Group income 4,741 4,173 1,473 Non-interest income (S$m) 1,334 899 470 1,111 220 Life & General Insurance 1,099 1,0
Slide 12: Wealth Management Franchise
Wealth management Wealth Management Franchise FY21 WM income rose 11% to S$3.92b; WM AUM higher YoY and QoQ Wealth Management Income (S$m) Wealth Management Assets Under Management (S$b) 41% 36% 35% 35% 37% 258 35% 34% 254 255 248 241 3,919 3,545 1,207 1,594 1,275 938 897 862 567 877 1/ 360 317 325
Slide 13: Net Fees & Commissions
Non-interest income Net Fees & Commissions Growth across all segments drove 12% YoY increase in FY21 fee income to a record 2,245 2,003 273 Net fees & commissions (S$m) 270 107 585 569 563 87 2/ 517 528 479 Others 68 67 69 23 23 69 432 Investment Banking 71 34 28 108 27 232 117 124 Loan, Trade, Guar
Slide 14: Trading Income
Non-interest income Trading Income FY21 customer flow treasury income higher YoY at S$719m 863 763 316 195 44 Trading income (S$m) 264 86 Non-Customer Flow 212 92 Customer Flow 44 83 152 719 668 230 172 168 164 158 (6) (81) 4Q20 1Q21 2Q21 3Q21 4Q21 FY20 FY21 14
Slide 15: Operating Expenses
Operating expenses Operating Expenses FY21 expenses higher at S$4.76b in tandem with increased business activities 50.5% Cost-to-income 45.3% 44.3% 46.4% 43.8% 45.0% 39.4% 4,764 4,439 868 1,289 829 Operating expenses (S$m) 1,188 1,125 1,149 1,138 280 868 Others 206 862 192 190 227 Staff costs up Pro
Slide 16: Allowances
Allowances Allowances FY21 allowances substantially lower YoY; total credit costs at 29bps compared to 67bps in FY20 67 39 30 41 29 Credit costs (bps) 1/ 22 21 Total 50 32 38 28 21 18 24 Impaired 2,043 Mainly driven by project financing delays due to supply chain disruption Allowances (S$m) brought
Slide 17: Total Cumulative Allowances
Allowances Total Cumulative Allowances NPA coverage ratio at 90% 115% 118% 104% 97% Total NPA coverage 90% 4,763 4,596 4,236 4,127 874 874 3,904 Cumulative allowances (S$m) 444 444 444 Regulatory Loss Allowance Reserve (“RLAR”) 1,914 1,907 2,012 1,998 1,923 Allowances for non-impaired assets (ECL st
Slide 18: Asset Quality
Asset quality Asset Quality Total NPAs at S$4.34b; NPL ratio remained stable at 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% NPL ratio 4,338 4,243 4,005 4,027 4,082 123 95 88 89 91 378 403 484 476 517 243 586 Non-performing Assets (S$m) 324 332 358 Debt securities / Contingent liabilities 1,028 651 689 883 1,208 R
Slide 19: Asset Quality
Asset quality Asset Quality Higher recoveries/upgrades and write-offs were offset by a rise in new NPAs in 4Q21 S$m 4Q20 3Q21 4Q21 FY20 FY21 At start of period 4,255 4,082 4,243 3,883 4,005 New NPAs Corporate/ Commercial Banking and Others 160 435 808 1,088 1,838 Consumer Banking/ Private Banking 13
Slide 20: Customer Loans
Loans Customer Loans Continued momentum drove loan growth up 8% YoY to S$290b Loans by Geography (S$b) Greater China Loans (S$b) 8% YoY ( 8% in constant ccy terms) 2% QoQ ( 2% in constant ccy terms) 0.5% 0.5% 0.5% 0.8% 0.3% NPL ratio 285 290 267 271 275 73 74 67 70 4 4 49 53 65 4 3 48 3 45 48 4 4 3
Slide 21: Customer Loans
Loans Customer Loans Loan portfolio continued to be well-diversified across industries 290 Loans by Industry (S$b) 267 13% Others 14% 5% Manufacturing 6% 11% Corporate, SME and Consumer/Private Banking comprise 51%, 10% and 39% of 11% loan book respectively General commerce 13% 11% Green and sustain
Slide 22: Customer Deposits
Deposits Customer Deposits Customer deposits grew 9% YoY to S$342b, led by higher CASA deposits 83.7% 84.7% 85.6% 84.5% 83.6% Group LDR 333 342 315 316 317 Customer Deposits (S$b) 34 29 36 30 31 Others 91 90 90 91 Fixed Deposits 95 CASA CASA ratio 61.8% 62.5% 62.0% 63.3% 60.3% 195 198 206 217 190 De
Slide 23: FY21 Total Dividend at 53 cents; Payout Ratio at 49%
Dividends FY21 Total Dividend at 53 cents; Payout Ratio at 49% Proposed final dividend increased to 28 cents per share 47% 49% 40% 39% 37% Dividend payout ratio 53.0 53.0 43.0 37.0 28.0 28.0 DPS (cents) 31.8 23.0 Final dividend 19.0 15.9 Interim dividend 25.0 25.0 18.0 20.0 15.9 2017 2018 2019 2020
Slide 24: Agenda
1 Financial Highlights Agenda 2 Group Performance Trends 3 Appendices: Major Subsidiaries’ Results 24
Slide 25: Great Eastern Holdings’ Performance
Great Eastern Great Eastern Holdings’ Performance FY21 net profit contribution rose 17% to S$932m YoY YoY QoQ S$m FY21 FY20 4Q21 4Q20 3Q21 +/(-)% +/(-)% +/(-)% Profit from insurance business 1,174 742 58 248 151 64 274 (9) - Operating profit 753 731 3 174 77 126 249 (30) - Non-operating profit/ (los
Slide 26: Great Eastern Holdings’ Financial Highlights
Great Eastern Great Eastern Holdings’ Financial Highlights Key Performance Trends Profit from Insurance Business (S$m) Profit from Shareholders’ Fund (S$m) 76% 62% 85% 58% 10% 130% 226 1,043 Non-operating profit/(loss) 244 642 290 219 Operating profit 124 83 96 45 249 731 753 47 174 12 77 (5) (89) (
Slide 27: OCBC Wing Hang Hong Kong & Macau’s Performance
OCBC Wing Hang OCBC Wing Hang Hong Kong & Macau’s Performance FY21 net profit at HKD2.01b YoY YoY QoQ HKD m FY21 FY20 4Q21 4Q20 3Q21 +/(-)% +/(-)% +/(-)% Net interest income 3,495 3,913 (11) 849 946 (10) 860 (1) Non-interest income 1,118 1,301 (14) 376 309 22 207 81 Total income 4,613 5,214 (12) 1,2
Slide 28: OCBC Wing Hang Hong Kong & Macau Financial Highlights
OCBC Wing Hang OCBC Wing Hang Hong Kong & Macau Financial Highlights Key Performance Trends Net Interest Margin Cost-to-Income 15.8ppt 9.2ppt 21bps 17bps 4.1ppt 6bps 1.67% 1.72% 55.8% 51.7% 51.3% 1.52% 1.55% 42.1% 1.46% 40.0% 4Q20 3Q21 4Q21 FY20 FY21 4Q20 3Q21 4Q21 FY20 FY21 Customer Loans (HKD b) C
Slide 29: OCBC Malaysia’s Performance
OCBC Malaysia OCBC Malaysia’s Performance FY21 net profit up 18% to RM664m YoY YoY QoQ RM m FY21 FY20 4Q21 4Q20 3Q21 +/(-)% +/(-)% +/(-)% Net interest income 1,580 1,489 6 383 376 2 407 (6) 1/ Islamic banking income 471 446 6 112 110 2 120 (7) Non-interest / finance income 726 723 − 176 227 (22) 167
Slide 30: OCBC Malaysia Financial Highlights
OCBC Malaysia OCBC Malaysia Financial Highlights Key Performance Trends Net Interest Margin Cost-to-Income 1.6ppt unchanged 9bps 1.3ppt 2.4ppt 10bps 2.04% 2.14% 2.04% 2.11% 2.02% 45.2% 45.5% 46.8% 46.4% 44.0% 4Q20 3Q21 4Q21 FY20 FY21 4Q20 3Q21 4Q21 FY20 FY21 Customer Loans (RM b) Customer Deposits (
Slide 31: Bank OCBC NISP’s Performance
Bank OCBC NISP Bank OCBC NISP’s Performance Record operating profit and lower allowances drove 20% increase in FY21 net profit to IDR2.52t YoY YoY QoQ IDR b FY21 FY20 4Q21 4Q20 3Q21 +/(-)% +/(-)% +/(-)% Net interest income 7,643 7,113 7 1,928 1,851 4 1,845 5 Non-interest income 2,059 2,249 (8) 505 4
Slide 32: Bank OCBC NISP Financial Highlights
Bank OCBC NISP Bank OCBC NISP Financial Highlights Key Performance Trends Net Interest Margin Cost-to-Income 11bps 14bps 4.5ppt 0.7ppt 4bps 3.0ppt 3.96% 45.7% 44.2% 44.1% 43.4% 3.81% 3.74% 3.70% 3.82% 41.2% 4Q20 3Q21 4Q21 FY20 FY21 4Q20 3Q21 4Q21 FY20 FY21 Customer Loans (IDR t) 2.4% 2.4% Customer D
Slide 33: Thank You
Full Year 2021 Results Presentation Thank You
Oversea-Chinese Banking — FY2021 Earnings Presentation on 6ix