Oversea Chinese Banking : First Half 2023 CEO Presentation (720KB)
August 03, 2023 at 07:19 pm EDT
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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
Strengthen income generation capabilities structurally
Better operating efficiency and cost-to-
income ratio
Focused capital deployment in high-growth
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.
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.
Oversea-Chinese Banking Corporation Limited (the Bank) is engaged in the business of banking, life insurance, general insurance, asset management, investment holding, futures and stockbroking. Its segments include Global Consumer/Private Banking, Global Wholesale Banking, Global Treasury and Markets, Insurance, and Others. The Global Consumer/Private Banking segment provides a range of deposit products, consumer loans, credit cards, wealth management products and brokerage services. The Global Wholesale Banking segment offers financing solutions, including long-term project financing, short-term credit, working capital and trade financing. The Global Treasury and Markets segment engages in foreign exchange activities, money market operations, fixed income, and derivatives trading, and offers structured treasury products and financial solutions. The Insurance segment provides both life and general insurance products to its customers, mainly in Singapore and Malaysia.