Oversea-chinese Banking Corporation Limited · SGX:O39
Oversea-chinese Banking — Q1 2024 Earnings Presentation
19 slides from Oversea-chinese Banking's earnings presentation, May 10, 2024
Slide 1: First Quarter 2024 Results Highlights
First Quarter 2024 Results Highlights Goh Chin Yee, Group Chief Financial Officer 10 May 2024 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 1Q24 performance
Performance highlights Record 1Q24 performance Total Income YoY QoQ ■ Total income and net profit at Group +5% YoY S$3.63b +8% +11% new quarterly high, ROE S$1.98b rose QoQ to 14.7% Net Profit +22% QoQ Net Interest Income (NII) +4% -1% +18% YoY Non-Interest Income (Non-II) +17% +47% ■ CIR improved Q
Slide 4: Group and Banking Operations net profit at new high
Performance overview Group and Banking Operations net profit at new high Group Performance Banking Operations Performance (S$m) 1Q24 YoY QoQ 1Q24 YoY QoQ Net Interest Income 2,437 +4% -1% 2,394 +4% -1% Non-Interest 1,189 +17% +47% 816 +14% +18% Income Total Income 3,626 +8% +11% 3,210 +6% +3% Operat
Slide 5: Robust performance across franchise
Performance highlights Robust performance across franchise Banking Wealth Management ■ Banking Operations profit Net Profit (S$m) NII and Fee Income (S$m) WM Income (S$m) 1/ WM AUM (S$b) at record high +3% +4% 32% 30% 36% +1% +15% flat +19% +4% ■ WM income and AUM +33% 1,289 higher 1,087 968 416 1,7
Slide 6: Strong balance sheet position
Balance sheet Strong balance sheet position Loans-to-Deposits Ratio Funding Composition (%) Group LDR (%) ■ Stable funding mix, close Customer deposits 12% to 80% from customer Bank deposits deposits Debts issued 6% S$470b Capital and reserves 3% 79.2 80.5 80.3 Mar 24 79% ■ Healthy funding, liquidit
Slide 7: Group Performance Trends
Agenda 01 Financial Highlights 02 Group Performance Trends 7
Slide 8: NII up 4% YoY, NIM at 2.27%
Net interest income NII up 4% YoY, NIM at 2.27% 1Q22 YoY YoY +4% +44% 2Q23 1Q24 2.30% 2.29% QoQ QoQ +44% -1% Net Interest Margin 2.26% 2.27% 2.27% ■ NII rose 4% YoY as 5% average asset growth more than offset 3bps decline in 2,462 NIM 2,456 2,437 2,389 2,338 ■ Adjusted for shorter-days impact in 1Q2
Slide 9: Non-II rebounded QoQ and YoY
Non-interest income Non-II rebounded QoQ and YoY YoY YoY +17% +44% 2Q23 1Q24 QoQ QoQ +44% +47% 30.2% 30.8% 28.4% 32.8% % of Group Income 24.8% ■ Non-II stronger QoQ and YoY, driven by growth 1,189 across fee, trading and insurance income 1,066 1,012 973 289 262 Non-interest Income (S$m) 238 220 811
Slide 10: Fee income highest in past four quarters
Non-interest income Fee income highest in past four quarters YoY YoY +6% +44% 2Q23 1Q24 QoQ QoQ +44% +4% ■ Fee income up QoQ and 461 460 479 YoY, underpinned by growth 453 430 in wealth management fees 75 Net Fees & Commissions (S$m) 78 84 80 driven by increased 63 23 23 18 19 customer activities Ot
Slide 11: Trading income rose to quarterly high
Non-interest income Trading income rose to quarterly high YoY YoY +45% +44% 2Q23 1Q24 QoQ QoQ +44% +67% 370 ■ Strong increase in trading 311 income driven by record 93 customer flow income and improved non-customer 255 111 flow income 216 222 60 Trading Income (S$m) 7 18 Non-Customer Flow 277 Custom
Slide 12: Costs well controlled, CIR below 40%
Operating expenses Costs well controlled, CIR below 40% YoY YoY +8% +44% 2Q23 1Q24 QoQ QoQ +44% +3% 38.5% 39.1% 40.0% 37.1% 37.1% Cost-to-income (CIR) ■ CIR improved QoQ to 37.1% as income growth outpaced increase in 1,329 1,340 1,310 1,346 1,244 expenses 210 217 171 175 158 ■ QoQ rise in expenses l
Slide 13: NPL ratio stable at 1.0%
Asset quality NPL ratio stable at 1.0% YoY YoY -9% +44% Mar 2Q2324 Non-performing assets (NPAs) QoQ QoQ +44% +5% S$m 1Q23 4Q23 1Q24 ■ Loan portfolio quality At start of period 3,486 3,095 2,901 remained sound Corporate/ Commercial Banking and Others ■ NPL ratio improved YoY New NPAs 54 54 239 and un
Slide 14: Allowances down 9% QoQ
Allowances Allowances down 9% QoQ YoY YoY +53% +44% 31 2Q23 1Q24 21 QoQ QoQ +44% -9% Credit costs (bps) 1/ 12 17 16 Total 21 5 6 18 ■ Total credit costs at an (0) Impaired annualised 16bps 252 Allowances (S$m) 184 187 169 Allowances for non-impaired assets 200 Allowances for 110 impaired assets 220
Slide 15: NPA coverage ratio above 100%
Allowances NPA coverage ratio above 100% YoY YoY +10% +44% 151% 146% Mar 2Q2324 131% 139% QoQ QoQ +44% +1% Total NPA coverage 121% ■ Cumulative allowances 4,382 4,438 higher, with NPA coverage 4,299 4,296 4,037 455 ratio at 146% 455 455 455 455 Cumulative allowances (S$m) Regulatory Loss Allowance R
Slide 16: Loans grew QoQ and YoY to S$301b
Loans Loans grew QoQ and YoY to S$301b Loans by Geography Loans by Industry YoY YoY +2% +44% Mar 2Q2324 +2% QoQ QoQ +44% +1% (S$b) in constant ccy terms +1% in constant ccy terms 294 297 298 297 301 9% 6% 21% ■ Corporate, SME and 58 59 60 60 62 Rest of the world 5% Consumer/Private Banking Greater C
Slide 17: Deposits up in tandem with loan growth
Deposits Deposits up in tandem with loan growth YoY YoY +1% +44% 80.5% 80.3% Mar 2Q2324 Group LDR 79.2% 78.8% 79.7% QoQ QoQ +44% +2% 81.6% 80.9% SGD LDR 76.5% 76.1% 76.4% ■ Deposits grew 2% QoQ, keeping pace with loan growth 53.3% 51.6% 53.3% 49.2% 50.5% USD LDR ■ LDR maintained at about 372 80% 367
Slide 18: Capital position robust
Capital Capital position robust CET1 CAR after adjusting for FY23 final dividend to be YoY +0.3ppt paid on 21 May 2024 YoY +44% Mar 2Q2324 QoQ QoQ +44% +0.3ppt ■ CET1 CAR up QoQ largely CET1 CAR (%) from profit accretion 15.9 15.9 16.2 15.4 14.8 15.3 ■ FY23 final dividend to be paid on 21 May 2024,
Slide 19: 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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