Oversea-chinese Banking Corporation Limited · SGX:O39
Oversea-chinese Banking — H1 2021 Earnings Presentation
34 slides from Oversea-chinese Banking's earnings presentation, Aug 4, 2021
Slide 1: First Half 2021 Results Presentation
First Half 2021 Results Presentation 4 August 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
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: 1H21 Performance
Performance review 1H21 Performance 1H21 net profit up 86% to S$2.66b; ROE higher at 10.8% ❑ Resilient Group performance as economic outlook improved ➢ Net profit for banking franchise up 81% to S$2.10b ➢ GEH’s net profit contribution more than doubled to S$565m; strong TWNS and NBEV growth ➢ Record
Slide 4: 1H21 Financial Highlights
Group performance 1H21 Financial Highlights 1H21 earnings driven by broad-based franchise growth Group Net Profit Operating Profit by Geography (S$m) 86% Others 6% 2,661 Greater 1H21 China 5% 22% 1H20 1,160 Singapore 1,428 24% Second Quarter 45% 730 First Quarter 1,501 8% 7% 49% Indonesia 18% 698 1H
Slide 5: 1H21 Financial Highlights
Group performance 1H21 Financial Highlights Performance reflected strength of OCBC’s well-diversified business franchise Banking Wealth Management Net Profit NPAs (S$m) and NPL ratio Group Wealth Management Income 1/ Bank of Singapore’s AUM (S$m) (S$m) (US$b) 1.6% 1.5% 2,145 25% 11% 2,095 81% 6% 1,7
Slide 6: Strong Balance Sheet Fundamentals
Balance sheet Strong Balance Sheet Fundamentals Ample funding, liquidity and capital buffers to weather through the cycle Funding Liquidity Capital • Nearly 80% from customer deposits • Sound liquidity position • Strong capital base • NSFR at 126% • LCR well above minimum required • Leverage ratio a
Slide 7: Group Performance
Group performance Group Performance 1H21 Group net profit of S$2.66b driven by income growth and lower allowances 1H21 1H20 YoY 2H20 HoH 2Q21 2Q20 YoY 1Q21 QoQ OCBC Group S$m S$m +/(-)% S$m +/(-)% S$m S$m +/(-)% S$m +/(-)% Net interest income 2,902 3,109 (7) 2,857 2 1,461 1,483 (2) 1,441 1 Non-inter
Slide 8: Banking Operations Performance
Banking Ops performance Banking Operations Performance 1H21 Banking Operations’ net profit higher YoY at S$2.10b 1H21 1H20 YoY 2H20 HoH 2Q21 2Q20 YoY 1Q21 QoQ Banking Operations S$m S$m +/(-)% S$m +/(-)% S$m S$m +/(-)% S$m +/(-)% Net interest income 2,853 3,051 (6) 2,809 2 1,436 1,456 (1) 1,417 1 No
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 1H21 net interest income at S$2.90b; NIM relatively stable for the past three quarters 1.68% 1.60% 1.56% 1.56% 1.58% 1.57% Net interest margin 1.54% 3,109 2,902 1,483 1,461 1,421 1,436 1,441 Net interest income (S$m) 2Q20 3Q20 4Q20 1Q21 2Q21 1H20 1H21 10
Slide 11: Non-interest Income
Non-interest income Non-interest Income 1H21 non-interest income rose 29% YoY to S$2.58b 50.6% 47.1% 43.5% 44.0% 42.2% 43.2% As % of Group income 39.2% 2,584 1,473 Non-interest income (S$m) 724 2,006 1,142 1,118 470 1,111 Life & General Insurance 1,049 439 108 Net gains from investment 282 264 71 25
Slide 12: Wealth Management Franchise
Wealth management Wealth Management Franchise 1H21 WM income rose to S$2.14b; private banking AUM grew 11% YoY to US$125b Total Wealth Management Income (S$m) Bank of Singapore’s Assets Under Management (US$b) 41% 39% 125 36% 38% 36% 123 35% 33% 121 2,145 116 1,207 113 1,713 969 927 954 938 862 567
Slide 13: Net Fees & Commissions
Non-interest income Net Fees & Commissions 1H21 fee income at a new high of S$1.15b from broad-based growth 1,148 137 986 57 585 129 563 Net fees & commissions (S$m) 517 68 46 225 501 69 23 440 71 71 34 211 Others 28 108 120 60 13 Investment Banking 117 23 110 111 65 104 Loan, Trade, Guarantees & Re
Slide 14: Trading Income
Non-interest income Trading Income 1H21 trading income higher YoY at S$528m 528 325 316 Trading income (S$m) 130 255 264 86 Non-Customer Flow 159 343 212 82 92 Customer Flow 20 44 398 230 323 166 173 172 168 2Q20 3Q20 4Q20 1Q21 2Q21 1H20 1H21 14
Slide 15: Operating Expenses
Operating expenses Operating Expenses Costs remained well-managed; CIR lower at 41.7% from positive operating jaws 43.2% 45.3% 44.3% 43.3% 42.2% 41.7% Cost-to-income 39.4% 2,287 2,216 382 1,125 1,149 1,138 389 1,107 1,098 Operating expenses (S$m) 192 190 198 212 227 419 424 Others 206 213 216 214 22
Slide 16: Allowances
Allowances Allowances 1H21 allowances substantially lower from a year ago as operating conditions gradually improved 97 91 Credit costs (bps) 47 39 22 30 26 Total loans 1/ 66 51 Impaired loans 1/ 20 32 21 19 18 1,407 750 Allowances (S$m) 232 614 Allowances for non- impaired assets (ECL stage 1 and 2
Slide 17: Total Cumulative Allowances
Allowances Total Cumulative Allowances NPA coverage ratio at 104% 109% 115% 118% 101% 104% Total NPA coverage 4,618 4,763 4,596 4,384 4,236 Cumulative allowances (S$m) 874 874 874 874 444 Regulatory Loss Allowance Reserve (“RLAR”) 1,863 1,914 2,012 1,668 1,907 Allowances for non-impaired assets (ECL
Slide 18: Asset Quality
Asset quality Asset Quality Total NPAs down YoY; NPL ratio at 1.5% 1.6% 1.6% NPL ratio 1.5% 1.5% 1.5% 4,351 4,255 122 4,005 4,027 4,082 100 Non-performing Assets (S$m) 530 88 89 91 496 484 476 517 Debt securities / Contingent liabilities 295 357 358 324 332 Rest of the World NPLs 723 692 Greater Chi
Slide 19: Asset Quality
Asset quality Asset Quality 1H21 NPAs lower YoY driven by higher recoveries S$m 2Q20 1Q21 2Q21 1H20 1H21 At start of period 4,386 4,005 4,027 3,883 4,005 New NPAs Corporate/ Commercial Banking and Others 384 144 459 852 601 Consumer Banking/ Private Banking 112 231 203 268 434 496 375 662 1,120 1,03
Slide 20: Customer Loans
Loans Customer Loans Loans of S$275b were higher QoQ and YoY Loans by Geography (S$b) +3% YoY (+3% in constant ccy terms) Greater China Loans (S$b) +1% QoQ (+1% in constant ccy terms) 0.4% 0.5% 0.5% 0.5% 0.5% 268 269 271 275 NPL ratio 267 70 48 67 67 65 67 43 44 45 48 4 4 4 4 4 3 3 2 2 2 67 67 65 67
Slide 21: Customer Loans
Loans Customer Loans Loan portfolio remained well-diversified with limited sector concentration 271 275 Loans by Industry (S$b) 14% 13% Corporate, SME and Consumer/Private Banking comprise 49%, 12% and 39% of Others 6% 6% loan book respectively Manufacturing 11% 11% O&G sector comprise 4% of loan bo
Slide 22: Loan Relief Update
Relief programmes Loan Relief Update Relief loans made up S$4.5b or 2% of Group loans 31 Mar 2021 30 Jun 2021 Total Loans under Moratorium (S$b) 5.1 92% secured 4.5 90% secured % of Group Loans 2% 2% % of % of By Geography (S$b) country loans country loans Singapore 2.6 1% 2.2 1% Individuals 1.1 1.1
Slide 23: Customer Deposits
Deposits Customer Deposits CASA deposits increased to S$198b; CASA ratio at 62.5% 85.4% 86.2% 84.7% 85.6% Group LDR 83.7% 310 307 315 316 317 27 28 30 31 29 Customer Deposits (S$b) 95 90 90 Others 108 97 Fixed Deposits CASA 61.8% 62.5% 59.2% 60.3% CASA ratio 56.7% 182 190 195 198 175 Jun 20 Sep 20 D
Slide 24: 1H21 Interim Dividend at 25 cents; Payout Ratio at 42%
Dividends 1H21 Interim Dividend at 25 cents; Payout Ratio at 42% Interim dividend raised to 25 cents per share 47% 40% 42% 37% 39% Dividend payout ratio 53.0 43.0 37.0 28.0 DPS (cents) 31.8 23.0 25.0 Final dividend 19.0 15.9 Interim dividend 25.0 25.0 18.0 20.0 15.9 2017 2018 2019 2020 1/ 2021 1/ 1/
Slide 25: Agenda
1 Financial Highlights Agenda 2 Group Performance Trends 3 Appendices: Major Subsidiaries’ Results 25
Slide 26: Great Eastern Holdings' Performance
Great Eastern Great Eastern Holdings’ Performance 1H21 net profit contribution higher at S$565m YoY YoY QoQ S$m 1H21 1H20 2Q21 2Q20 1Q21 +/(-)% +/(-)% +/(-)% Profit from insurance business 652 365 79 220 251 (12) 432 (49) - Operating profit 330 484 (32) 148 185 (20) 182 (19) - Non-operating profit/
Slide 27: 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) 17% 96% 39% 117% 54% 2% 580 125 397 297 103 Non-operating profit/(loss) 250 221 215 183 Operating profit 62 63 58 36 484 182 35 330 185 148 (187
Slide 28: OCBC Wing Hang Hong Kong & Macau's Performance
OCBC Wing Hang OCBC Wing Hang Hong Kong & Macau’s Performance 1H21 net profit at HKD1.14b YoY YoY QoQ HKD m 1H21 1H20 2Q21 2Q20 1Q21 +/(-)% +/(-)% +/(-)% Net interest income 1,787 2,020 (12) 882 975 (10) 905 (2) Non-interest income 534 690 (22) 240 322 (25) 294 (19) Total income 2,321 2,710 (14) 1,1
Slide 29: 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 5.6ppt 7.5ppt 14bps 17bps 2.9ppt 7bps 1.78% 47.3% 50.2% 48.7% 1.71% 44.6% 1.64% 1.61% 41.2% 1.57% 2Q20 1Q21 2Q21 1H20 1H21 2Q20 1Q21 2Q21 1H20 1H21 Customer Loans (HKD b) Cu
Slide 30: OCBC Malaysia's Performance
OCBC Malaysia OCBC Malaysia’s Performance 1H21 net profit rose 39% to RM424m YoY YoY QoQ RM m 1H21 1H20 2Q21 2Q20 1Q21 +/(-)% +/(-)% +/(-)% Net interest income 790 742 6 409 360 14 381 7 1/ Islamic banking income 239 222 8 118 102 16 121 (2) Non-interest / finance income 383 366 5 208 167 25 175 19
Slide 31: OCBC Malaysia Financial Highlights
OCBC Malaysia OCBC Malaysia Financial Highlights Key Performance Trends Net Interest Margin Cost-to-Income 4.7ppt 24bps 10bps 2.7ppt 3.9ppt 8bps 2.09% 2.17% 2.13% 48.0% 1.93% 2.03% 45.9% 40.6% 43.3% 42.0% 2Q20 1Q21 2Q21 1H20 1H21 2Q20 1Q21 2Q21 1H20 1H21 Customer Loans (RM b) Customer Deposits (RM b
Slide 32: Bank OCBC NISP's Performance
Bank OCBC NISP Bank OCBC NISP’s Performance 1H21 net profit at IDR1.47t YoY YoY QoQ IDR b 1H21 1H20 2Q21 2Q20 1Q21 +/(-)% +/(-)% +/(-)% Net interest income 3,870 3,462 12 1,960 1,730 13 1,910 3 Non-interest income 1,041 1,180 (12) 557 461 21 485 15 Total income 4,911 4,642 6 2,516 2,191 15 2,395 5 O
Slide 33: Bank OCBC NISP Financial Highlights
Bank OCBC NISP Bank OCBC NISP Financial Highlights Key Performance Trends Net Interest Margin Cost-to-Income 7bps 11bps 0.1ppt 0.2ppt 34bps 1.6ppt 4.03% 4.10% 4.03% 45.0% 44.2% 3.92% 43.5% 43.4% 44.0% 3.76% 2Q20 1Q21 2Q21 1H20 1H21 2Q20 1Q21 2Q21 1H20 1H21 Customer Loans (IDR t) 2.5% Customer Deposi
Slide 34: First Half 2021 Results Thank You
First Half 2021 Results Thank You
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