Group Chief Executive Officer Remarks

Helen Wong, Group Chief Executive Officer

4 August 2023

OCBC Financial Results

Results overview

1H23 Overview

  • Resilient first half performance from higher contributions across banking, wealth management and insurance franchise
  • Record income drove 1H23 net profit to a new high
  • Additional general allowances set aside to buffer for uncertainties, with cumulative general allowances comprising close to 60% of total allowances. Group allowance coverage higher at 131%
  • Global growth momentum expected to slow heading into 2024; watchful of impact from persistent inflationary pressures and higher interest rates

2023 Outlook

  • ROE in the range of 14%
  • NIM above 2.2%
  • CIR at lower end of 40%-45% range
  • Loan book resilient; credit costs around 20 bps
  • Low-to-midsingle-digit loan growth
  • Dividend payout of 50%

2

Corporate strategy

"One Group" to empower our strategy and strengthen our position as the

Leading Financial Services Partner for a Sustainable Asia

Driving Growth

1

Capture rising Asian wealth with our Singapore-

Hong Kong hubs and digital propositions

2

Support increasing ASEAN-Greater China trade

and investment flows

3

Unlock value from New Economy and high-

growth industries

Drive transition to a sustainable low-carbon

4 world

Reinforcing Strengths

5

Forge a "One Group" integrated customer

experience approach

6

Invest in accelerating Transformation and

Digitalisation

7

Strengthen our people assets and culture

8

Build on our capital and risk management

strengths

3

Corporate strategy

A unified brand across markets to solidify our One Group approach

Unified Brand

  • Change of legal names
  • Refreshed logo to be used across all markets.
  • New tagline: For Now and Beyond 心所向, 行致遠
  • Solidified One Group approach to accelerate ASEAN-Greater China growth
  • OCBC provides collective and seamless support to businesses and individuals, meeting their needs and aspirations today and into the future, across ASEAN and Greater China
  • Identified and embarked on strategic initiatives to drive S$3b incremental revenue above current growth trajectory over next three years (2023-2025)

4

Strategic priorities

Our refreshed strategy aims to deliver an incremental S$3b revenue over the next 3 years

Driven by 4 growth pillars: Asian wealth, trade and investment flows, new economy & sustainability

Building on Core Strengths and Capabilities

1

Anchor market leadership as Top 2 Financial

Institution in ASEAN by assets

  1. Strengthen income generation capabilities structurally
    Better operating efficiency and cost-to-
  2. income ratio
    Focused capital deployment in high-growth
  3. markets in ASEAN-Greater China

Expected Outcomes

1

Incremental S$3b revenue cumulative over

2023 to 2025

Base case ROE of 12%-13% by 2025 1/ with

2 additional +1ppt contribution from S$3b incremental revenue

3

Structural earnings growth while delivering

50% dividend payout ratio

4 Target 14% CET1 over medium term

1/ Assuming interest rates are not substantially lower than current levels, and subject to changes in business conditions and macroeconomic outlook.

5

Attachments

Disclaimer

OCBC - Oversea-Chinese Banking Corporation Ltd. published this content on 03 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 August 2023 23:16:32 UTC.