Oversea Chinese Banking : First Half 2023 Results Presentation (1MB)

First Half 2023 Results Presentation

Goh Chin Yee, Group Chief Financial Officer 4 August 2023

OCBC Financial Results

Agenda

Financial Highlights

Group Net Profit

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;	2
- Figures may not sum to stated totals because of rounding.

Financial Highlights

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Record 1H23 profit drove ROE above 14%

Performance highlights

Group	S$3.59b	+38% YoY
Net Profit

Banking
Operations	S$3.23b	+33% YoY
Net Profit

Total Income	YoY

S$6.80b	+30%
Net Interest Income (NII)	+48%
Non-Interest Income (Non-II)	+3%
Operating Expenses
S$2.57b	+5%
Net Interest Margin
2.28%	+65bps
Credit Costs
21bps	+14bps
Customer Loans

■ NII up 48% on asset growth

and strong NIM expansion

■ Non-II up, driven by trading,

investment and insurance

income

■ Expenses higher from

continued investments in

talent and technology to

support growth

■ CIR lower at 37.8% on

positive operating jaws

Dividend

40 cents

EPS S$1.60

(annualised)

ROE 14.3%

(annualised)

+43% YoY

+39% YoY

+3.9 ppt YoY

S$297b	(in constant currency terms) +2%
Customer Deposits
S$372b	+7%
NPL Ratio
1.1%	-0.2ppt
CET1 CAR
15.4%	+0.5ppt
All-ccy LCR
158%	+10ppt

■ Credit costs rose to 21bps,

led by higher general

allowances

■ Loans and deposits up YoY

■ NPL ratio lower at 1.1%

■ Strong funding, liquidity and

capital positions maintained

■ Interim dividend of 40 cents,

up 12 cents YoY

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1H23 Financial highlights

Banking

Wealth Management

Performance highlights

Net Profit (S$m)

NII and Fee Income (S$m)

WM Income (S$m)1/

WM AUM (S$b)

■ Resilient performance

+33%

3,228

2,419

+34%

5,486

4,105

31% 33%

+36%

2,240

1,645 682

451

1,194 1,559

1H22 1H23

+10%

+2%

250	270	274
Jun 22	Mar 23	Jun 23

	across three key business
	pillars
■	Record WM income drove
	Group income higher YoY
■	QoQ and YoY rise in AUM

1H22

1H23

1H22

1H23

Banking Insurance As % of Group income

driven by continued net

new money inflows

Customer Loans (S$b)

Customer Deposits (S$b) and CASA ratio

Insurance

■ Insurance TWNS and

(in constant currency terms)

	+2%
		+0.3%
298	294	297
Jun 22	Mar 23	Jun 23

60.9%	47.1%
	45.3%
	+7%
		+2%
349	367		372
Jun 22	Mar 23		Jun 23

Total Weighted New Sales (S$m)

-31%

1,052	726
1H22	1H23

New Business Embedded Value (S$m) and Margin

37.1% 48.4%

-10%

391	351
1H22	1H23

NBEV down YoY mainly

due to slower single

premium sales which

offset higher regular

premium sales; NBEV

margin improved due to

favourable product mix

1/ Wealth Management income comprises the consolidated income from insurance, private banking, premier private client, premier banking, asset management and stockbroking.

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