Oversea Chinese Banking : 2021 Condensed Interim Financial Statements (916KB)

To Our Shareholders

The Board of Directors of Oversea-Chinese Banking Corporation Limited ("OCBC") reports the following:

Financial Results for the Financial Year Ended 31 December 2021

For the financial year ended 31 December 2021, the Group reported net profit after tax was S$4.86 billion. Details of the financial results are in the accompanying Condensed Interim Financial Statements.

Ordinary Dividend

A final tax exempt dividend of 28 cents per share has been recommended for the financial year 2021 ("FY21"). Including the interim net dividend of 25 cents per share paid in August 2021, total dividends for FY21 would amount to 53 cents per share, back to FY19's pre-pandemic level. The total dividend payout will amount to an estimated S$2.39 billion (2020: S$1.41 billion) or approximately 49% of the Group's net profit after tax of S$4.86 billion for FY21.

Closure of Books

The record date is 9 May 2022. Please refer to the separate announcement titled "Notice of Books Closure and Payment of Final One-Tier Tax Exempt Dividend on Ordinary Shares for the Financial Year Ended 31 December 2021" released by the Bank today.

Scrip Dividend Scheme

The Oversea-Chinese Banking Corporation Limited Scrip Dividend Scheme, which was approved by the Shareholders of the Bank at the Extraordinary General Meeting on 8 June 1996, will not be applicable to the final dividend.

Peter Yeoh

Secretary

Singapore, 23 February 2022

More details on the results are available on the Bank's website at www.ocbc.com

Oversea-Chinese Banking Corporation Limited and its Subsidiaries

Condensed Interim Financial Statements

For the Half Year and Full Year ended 31 December 2021

Incorporated in Singapore

Company Registration Number: 193200032W

CONTENTS

Condensed Interim Financial Statements

Consolidated Income Statement	2
Consolidated Statement of Comprehensive Income	3
Balance Sheets	4
Statement of Changes in Equity - Group	5
Statement of Changes in Equity - Bank	7
Consolidated Cash Flow Statement	8
Notes to the Condensed Interim Financial Statements	9
Other Information Required by Listing Rule Appendix 7.2	27
Attachment: Independent Auditor's Report

2021 Financial Results ▌ 1

OVERSEA-CHINESE BANKING CORPORATION LIMITED AND ITS SUBSIDIARIES

CONSOLIDATED INCOME STATEMENT

For the financial year ended 31 December 2021

		GROUP
S$ million	Note	2H 2021 (1) 2H 2020 (1)	2021	2020

Interest income
Interest expense
Net interest income	3
Profit from life insurance (2)	4
Premium income from general insurance
Fees and commissions (net)	5
Dividends
Net trading income
Other income	6
Non-interest income
Total income
Staff costs
Other operating expenses	7
Total operating expenses
Operating profit before allowances and
amortisation
Amortisation of intangible assets
Allowances for loans and other assets	8

Operating profit after allowances and amortisation

Share of results of associates, net of tax

Profit before income tax

Income tax expense

Profit for the period/year

3,714	3,915	7,425	9,143
(761)	(1,058)	(1,570)	(3,177)
2,953	2,857	5,855	5,966
510	359	1,137	698
100	100	197	201
1,097	1,018	2,245	2,003
65	49	113	78
235	519	763	863
150	122	286	330
2,157	2,167	4,741	4,173
5,110	5,024	10,596	10,139
(1,542)	(1,345)	(3,028)	(2,748)
(935)	(878)	(1,736)	(1,691)
(2,477)	(2,223)	(4,764)	(4,439)
2,633	2,801	5,832	5,700
(52)	(51)	(103)	(104)
(480)	(636)	(873)	(2,043)
2,101	2,114	4,856	3,553
402	284	824	612
2,503	2,398	5,680	4,165
(235)	(156)	(648)	(437)
2,268	2,242	5,032	3,728

Attributable to:	2,197	2,158	4,858	3,586
Equity holders of the Bank
Non-controlling interests	71	84	174	142
	2,268	2,242	5,032	3,728
Earnings per share (S$)	0.48	0.48	1.07
Basic	0.80
Diluted	0.48	0.48	1.07	0.80

1. Unaudited and unreviewed.
2. Comprised premium and investment income of S$19,506 million and S$9,963 million for 2021 and 2H2021 respectively (2020: S$20,890 million and 2H2020: S$13,434 million) and insurance claims, commission and other expenses of S$18,285 million and S$9,409 million for 2021 and 2H2021 respectively (2020: S$20,203 million and 2H2020: S$13,088 million) for the Group. Refer to Note 4.

The accompanying notes form an integral part of these condensed interim financial statements.

2021 Financial Results ▌ 2

OVERSEA-CHINESE BANKING CORPORATION LIMITED AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the financial year ended 31 December 2021

		GROUP
S$ million	2H 2021 (1)	2H 2020 (1)	2021	2020
Profit for the period/year	2,268	2,242	5,032	3,728
Other comprehensive income:
Items that may be reclassified subsequently to
income statement:
Financial assets, at FVOCI (2)	(312)	290	(694)	877
Fair value (losses)/gains for the period/year
Reclassification of (gains)/losses to income statement	(33)	(107)	(131)	(506)
- on disposal
- on impairment	(3)	(5)	3	5
Tax on net movements	34	(30)	98	(37)
Cash flow hedges	#	(2)	(#)	#
Currency translation on foreign operations	65	(392)	110	42
Other comprehensive income of associates	179	36	339	129
Items that will not be reclassified subsequently to
income statement:	9	(15)	(1)	(12)
Currency translation on foreign operations
Equity instruments, at FVOCI (2), net change in fair value	55	309	134	116
Defined benefit plans remeasurements	(1)	(#)	(1)	#
Own credit	#	#	1	1
Total other comprehensive income, net of tax	(7)	84	(142)	615
Total comprehensive income for the period/year,	2,261	2,326	4,890	4,343
net of tax
Total comprehensive income attributable to:	2,190	2,225	4,735	4,200
Equity holders of the Bank
Non-controlling interests	71	101	155	143
	2,261	2,326	4,890	4,343

1. Unaudited and unreviewed.
2. Fair value through other comprehensive income.
3. # represents amounts less than S$0.5 million.

The accompanying notes form an integral part of these condensed interim financial statements.

2021 Financial Results ▌ 3