Oversea-chinese Banking Corporation Limited · SGX:O39
Oversea-chinese Banking — FY2024 Earnings Presentation
23 slides from Oversea-chinese Banking's earnings presentation, Feb 26, 2025
Slide 1: OCBC Full Year 2024 Results Presentation
OCBC Full Year 2024 Results Presentation Goh Chin Yee, Group Chief Financial Officer 26 February 2025 OCBC Financial Results
Slide 2: Agenda
Agenda 01 Financial Highlights 02 Group Performance Trends Notes: - 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 st
Slide 3: Record FY profit; launched S$2.5b capital return plan
Performance highlights Record FY profit; launched S$2.5b capital return plan YoY Total Income ■ Record NII supported by asset S$14.5b +7% growth Group S$7.59b +8% YoY Net Interest Income (NII) +1% Net Profit Non-Interest Income (Non-II) +22% ■ Strong non-II from broad- +18% YoY based growth across k
Slide 4: Delivering increased shareholder returns
Capital return Delivering increased shareholder returns S$2.5 billion capital distribution over two years Special Dividends for FY24 and FY25 Share Buybacks Set at 10% payout over two years of annual net profit Total dividend payout of 60% annually for FY24 and FY25 10% 50% special dividend payout t
Slide 5: FY24 Group and Banking Operations net profit at record highs
Performance overview FY24 Group and Banking Operations net profit at record highs Group Performance Banking Operations Performance (S$m) FY24 FY23 YoY FY24 FY23 YoY Net Interest Income 9,755 9,645 +1% 9,583 9,500 +1% Non-Interest Income 4,718 3,862 +22% 3,464 2,880 +20% Total Income 14,473 13,507 +7
Slide 6: 4Q24 Group net profit up YoY, but lower QoQ
Performance overview 4Q24 Group net profit up YoY, but lower QoQ partly due to a decline in insurance income arising from industry factors Group Performance Banking Operations Performance (S$m) 4Q24 4Q23 YoY 3Q24 QoQ 4Q24 4Q23 YoY 3Q24 QoQ Net Interest Income 2,455 2,462 – 2,433 +1% 2,409 2,416 – 2,
Slide 7: Robust franchise performance
Performance highlights Robust franchise performance Banking Wealth Management Net Profit (S$m) NII and Fee Income (S$m) WM Income (S$m) 1/ WM AUM (S$b) 32% 34% ■ Record Banking Operations +2% +5% +14% net profit for three +13% consecutive years, 4,321 4,894 underpinned by strong 1,426 299 income gro
Slide 8: Well-diversified earnings across business and geography
Performance review Well-diversified earnings across business and geography Operating Profit by Business Operating Profit by Geography Others Others 5% 6% Insurance 14% FY24 FY24 7% Greater China 6% 20% 12% FY23 FY23 Global 20% 1% Markets 6% Global 53% 49% Wholesale Banking 6% 57% 56% Singapore Indon
Slide 9: Strong balance sheet: Well-positioned to pursue future growth
Balance sheet Strong balance sheet: Well-positioned to pursue future growth and navigate uncertainties Loans-to-Deposits Ratio Funding Composition (%) Group LDR (%) ■ Diversified and stable Customer deposits 12% funding sources, largely Bank deposits comprised customer Debts issued 7% Capital and re
Slide 10: Group Performance Trends
Agenda 01 Financial Highlights 02 Group Performance Trends 10
Slide 11: Record FY24 NII supported by asset growth
Net interest income Record FY24 NII supported by asset 1Q22growth FY24 YoY 4Q24 +44% 2Q23 YoY unchanged YoY +1% QoQ +44% 2.29% QoQ +1% 2.27% 2.20% 2.28% 2.20% Net Interest Margin 2.18% 2.15% ■ FY24 NII at new high, driven by a 5% growth in average 9,645 9,755 assets from customer loans, 2,462 2,437
Slide 12: FY24 Non-II rose 22% from broad-based growth
Non-interest income FY24 Non-II rose 22% from broad-based growth FY24 YoY 4Q24 +44% 2Q23 YoY +18% YoY +22% QoQ +44% 32.8% 33.0% 36.0% 32.6% QoQ -30% % of Group Income 24.8% 28.1% 28.6% ■ FY24 Non-II lifted mainly by 4,718 strong growth in wealth- related fees and insurance 917 income, and record tra
Slide 13: Full year fee income up 9% YoY
Non-interest income Full year fee income up 9% YoY FY24 YoY 4Q24 +44% 2Q23 YoY +12% YoY +9% QoQ QoQ +44% +2% 1,970 1,804 ■ FY24 fee income up YoY, led 272 by improved wealth-related, 304 108 investment banking and Net Fees & Commissions (S$m) loan-related fees 508 517 90 Others 2/ 479 466 460 58 72
Slide 14: FY24 trading income rose 53% YoY to S$1.54b
Non-interest income FY24 trading income rose 53% YoY to S$1.54b FY24 YoY 4Q24 +44% 2Q23 YoY +37% YoY +53% QoQ +44% QoQ -40% 1,537 ■ Record FY24 customer flow 425 income driven by increased activities from both consumer and corporate segments 1,004 508 ■ FY24 non-customer flow 194 income higher YoY,
Slide 15: FY24 cost-to-income ratio below 40%
Operating expenses FY24 cost-to-income ratio below 40% FY24 YoY 4Q24 +44% 2Q23 YoY +19% YoY +10% QoQ +44% 45.7% QoQ +7% Cost-to-income (CIR) 40.0% 37.8% 38.5% 38.7% 39.7% 37.1% ■ Broad-based expense growth in FY24 to invest in strategic 5,742 initiatives and support 5,223 843 business growth 1,560 7
Slide 16: Asset quality stable with NPL ratio at 0.9%
Asset quality Asset quality stable with NPL ratio at 0.9% YoY YoY -1% +44% Dec 24 2Q23 Non-performing assets (NPAs) 4Q23 3Q24 4Q24 FY23 FY24 QoQ QoQ +44% +3% (S$m) At start of period 3,095 2,901 2,797 3,486 2,901 ■ NPL ratio lower than a year ago Corporate/ Commercial Banking and Others New NPAs 54
Slide 17: FY24 allowances down YoY, credit costs lower at 19 basis points
Allowances FY24 allowances down YoY, credit costs lower at 19 basis points FY24 YoY 4Q24 +44% Credit costs (bps) 1/ 2Q23 YoY +12% 21 16 15 22 21 20 19 YoY -6% QoQ +44% Total QoQ +22% 18 16 15 8 14 ■ FY24 total credit costs 6 Impaired (0) lower YoY at 19 bps 733 ■ 4Q24 allowances mainly for 690 one H
Slide 18: NPA coverage ratio at 159%
Allowances NPA coverage ratio at 159% YoY YoY +44% +4% 164% 159% Dec 24 2Q23 151% 146% 155% QoQ QoQ -1% +44% Total NPA coverage ■ NPA coverage ratio increased YoY due to a 4,492 4,587 4,558 4,382 4,438 decline in NPAs and 455 455 455 455 higher allowances set 455 aside Cumulative allowances (S$m) Re
Slide 19: Loans grew 8% YoY to S$319b
Loans Loans grew 8% YoY to S$319b Loans by Geography Loans by Industry YoY YoY +8% +44% +7% 2Q23 Dec 24 (S$b) QoQ QoQ +44% +5% (S$b) in constant ccy terms +3% in constant ccy terms 9% 7% 21% 319 297 301 304 305 5% 9% ■ Corporate, SME and 22% Rest of the world 60 62 64 63 66 5% 5% Consumer/Private Ba
Slide 20: Deposits up QoQ and YoY
Deposits Deposits up QoQ and YoY YoY YoY +44% +7% 80.5% 80.3% 81.1% 81.6% 80.7% Dec 24 2Q23 Group LDR QoQ QoQ +6% +44% 81.6% 80.9% 81.4% 83.0% 82.1% ■ Total deposits up QoQ and SGD LDR YoY, from increases in both CASA and fixed deposits 49.2% 50.5% 49.8% 48.1% 50.7% USD LDR ■ CASA deposits up from b
Slide 21: Strong capital position to pursue business growth and drive shareholder returns
Capital Strong capital position to pursue business growth and drive shareholder returns YoY YoY +1.2ppt +44% 17.2 1/ 17.1 1/ Dec 24 2Q23 1/ QoQ QoQ +44% -0.1ppt 1.6 2/ 15.9 1.8 2/ Transitional uplift from final Basel III reforms 2/ 1.6 CET1 CAR after ■ CET1 CAR slightly below adjusting for the previ
Slide 22: FY24 total dividend raised
Dividend FY24 total dividend raised ■ 60% total dividend payout 53% 53% 60% ratio for FY24 and FY25 Dividend payout ratio 49% 39% Full Year (including special) 50% ■ Final ordinary dividend of 41 Full Year cents, bringing total ordinary Interim 49% 50% 50% dividend to 85 cents, with 42% 44% payout r
Slide 23: 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. This presentation contains “forward-looking statements”, which are ba
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