Oversea-chinese Banking Corporation Limited · SGX:O39
Oversea-chinese Banking — Q1 2025 Earnings Presentation
20 slides from Oversea-chinese Banking's earnings presentation, May 9, 2025
Slide 1: First Quarter 2025 Results Highlights
First Quarter 2025 Results Highlights Goh Chin Yee, Group Chief Financial Officer 9 May 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: Performance highlights: Resilient 1Q25 earnings
Performance highlights Resilient 1Q25 earnings YoY QoQ Total Income ■ Total income grew QoQ and S$3.66b +1% +7% YoY Group -5% YoY S$1.88b Net Interest Income (NII) -4% -4% Net Profit +12% QoQ Non-Interest Income (Non-II) +10% +36% ■ NII down QoQ and YoY as +18% YoY the increase from average Operatin
Slide 4: 1Q25 Group net profit up 12% QoQ
Performance overview 1Q25 Group net profit up 12% QoQ Group Performance Banking Operations Performance (S$m) 1Q25 YoY QoQ 1Q25 YoY QoQ Net Interest Income 2,345 -4% -4% 2,294 -4% -5% Non-Interest 1,310 +10% +36% 910 +12% +15% Income Total Income 3,655 +1% +7% 3,204 – – Operating 1,415 +5% -9% 1,384
Slide 5: 1Q25 Financial highlights
Performance highlights 1Q25 Financial highlights Banking Wealth Management ■ Banking Operations profit Net Profit (S$m) Total Income (S$m) WM Income (S$m) 1/ Banking WM AUM (S$b) -9% unchanged 36% 31% 38% +12% unchanged QoQ, unchanged unchanged +6% +2% supported by 15% 3,210 3,201 3,204 +29% increas
Slide 6: Earnings diversified across businesses and regions
Performance review Earnings diversified across businesses and regions Operating Profit by Business Operating Profit by Geography Others Others Insurance 7% 19% 4% 1Q25 1Q25 Greater China 6% 16% 1Q24 21% 1Q24 19% Global Global Markets 10% 5% 48% 46% Wholesale 5% 53% Singapore Banking 58% Indonesia 6%
Slide 7: Robust balance sheet to support growth and buffer against uncertainties
Balance sheet Robust balance sheet to support growth and buffer against uncertainties Loans-to-Deposits Ratio Funding Composition (%) Group LDR (%) ■ Ratios are well above Customer deposits 12% regulatory requirements, Bank deposits 6% reflecting healthy funding, Debts issued Capital and reserves 3%
Slide 8: Group Performance Trends
Agenda 01 Financial Highlights 02 Group Performance Trends 8
Slide 9: 1Q25 NII lower as NIM decline offset asset growth
Net interest income 1Q25 NII lower as NIM decline offset 1Q22asset growth YoY YoY -4% +44% 2Q23 1Q25 QoQ QoQ +44% -4% 2.27% 2.20% 2.18% 2.15% Net Interest Margin 2.04% ■ NII fell 4% QoQ from lower NIM and a shorter quarter, partly compensated by 3% 2,437 2,430 2,433 2,455 2,345 average asset growth
Slide 10: Broad-based growth in non-II
Non-interest income Broad-based growth in non-II YoY YoY +10% +44% 2Q23 1Q25 QoQ QoQ +44% +36% 32.8% 33.0% 36.0% 35.8% % of Group Income 28.1% ■ Non-II expanded QoQ and YoY, led by growth in wealth- related fees, trading income 1,369 1,310 and insurance income Non-interest Income (S$m) 1,189 1,199 2
Slide 11: Highest fee income across five quarters
Non-interest income Highest fee income across five quarters YoY YoY +14% +44% 2Q23 1Q25 QoQ QoQ +44% +6% ■ 1Q25 fee income up QoQ and YoY, largely from 546 stronger wealth-related, Net Fees & Commissions (S$m) 508 517 479 66 loan-related and investment 466 72 Others 2/ 58 29 banking fees 75 66 35 27
Slide 12: Trading income rose to S$396m
Non-interest income Trading income rose to S$396m YoY YoY +7% +44% 2Q23 1Q25 QoQ QoQ +44% +31% ■ QoQ growth in trading income driven by both 508 customer flow and non- customer flow income 396 370 202 356 90 Trading Income (S$m) 93 303 92 38 Non-Customer Flow Customer Flow 277 306 306 264 265 1Q24 2
Slide 13: Expenses 9% lower QoQ, CIR below 40%
Operating expenses Expenses 9% lower QoQ, CIR below 40% YoY YoY +5% +44% 2Q23 1Q25 45.7% QoQ QoQ +44% -9% 37.1% 37.8% 38.5% 38.7% Cost-to-income (CIR) ■ Expenses down 9% QoQ, largely due to higher costs incurred in 4Q24 to invest 1,560 in strategic initiatives and 1,463 1,373 1,415 support business
Slide 14: NPL ratio stable QoQ at 0.9%
Asset quality NPL ratio stable QoQ at 0.9% YoY YoY -4% +44% Mar 2Q2325 Non-performing assets (NPAs) 1Q24 4Q24 1Q25 QoQ QoQ +44% +2% (S$m) At start of period 2,901 2,797 2,869 ■ Loan portfolio quality resilient Corporate/ Commercial Banking and Others New NPAs 239 525 236 ■ NPL ratio improved YoY Net
Slide 15: Allowances up from non-impaired assets
Allowances Allowances up from non-impaired assets YoY YoY +25% +44% Credit costs (bps) 1/ 22 21 24 2Q23 1Q25 16 15 QoQ QoQ +44% +2% Total 18 16 15 ■ Total credit costs higher at 11 an annualised 24bps, mainly Impaired 6 driven by allowances for non-impaired assets 208 212 Allowances (S$m) 169 169 53
Slide 16: NPA coverage ratio higher at 162%
Allowances NPA coverage ratio higher at 162% YoY YoY +7% +44% 155% 164% 159% 162% Mar 2Q2325 Total NPA coverage 146% QoQ QoQ +44% +4% Allowances for non-impaired 0.9% 0.9% 0.9% 0.9% 0.9% ■ NPA coverage ratio rose loans / Performing loans YoY to 162% from higher allowances set aside and a decline in
Slide 17: Loans grew 7% YoY to S$322b
Loans Loans grew 7% YoY to S$322b Loans by Geography Loans by Industry YoY YoY +7% +44% Mar 2Q2325 +7% (S$b) QoQ QoQ +44% +1% (S$b) in constant ccy terms +1% in constant ccy terms 9% 322 7% 21% 301 304 305 319 ■ Corporate, SME and 66 68 6% 9% 21% Rest of the world 62 64 63 5% Consumer/Private Bankin
Slide 18: Deposits grew QoQ and YoY; CASA ratio improved
Deposits Deposits grew QoQ and YoY; CASA ratio improved YoY YoY +9% +44% 80.3% 81.1% 81.6% 80.7% 78.9% Mar 2Q2325 Group LDR QoQ QoQ +44% +3% 83.0% 82.1% 80.9% 81.4% 78.5% ■ Total deposits up QoQ and SGD LDR YoY, from both CASA and fixed deposits 50.5% 49.8% 50.7% 51.8% 48.1% USD LDR ■ CASA ratio hig
Slide 19: Strong capital position
Capital Strong capital position YoY YoY +1.4ppt +44% 1/ 17.2 1/ 17.1 1/ 17.6 Mar 2Q2325 1/ QoQ QoQ +44% +0.5ppt 2/ 2/ 16.4 1.6 1.8 2/ 2.1 Transitional uplift from final Basel III reforms 2/ 1.9 CET1 CAR ■ CET1 CAR up QoQ mainly after adjusting for FY24 final and from profit accretion CET1 CAR (%) 16
Slide 20: 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
Oversea-Chinese Banking — Q1 2025 Earnings Presentation on 6ix