Oversea Chinese Banking : First Half 2022 Results Presentation (722KB)

First Half 2022

Results Presentation

3 August 2022

OCBC Financial Results

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. These statements involve risks and uncertainties and should not be solely relied upon by investors or potential investors when making an investment decision. OCBC Bank accepts no liability whatsoever with respect to the use of this document or its content.

Agenda

Financial Highlights

Group Net Profit

Group Performance Trends

Appendices: Major Subsidiaries' Results

Note: - 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 stated totals because of rounding.

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Financial Highlights

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1H22 Performance

Total Income

+1%

Group Net Profit

S$5.52b

YoY

+7%

Net Interest +10%

Non-Interest-10%

S$2.84b

Income

YoY

Income

YoY

YoY

Operating Expenses

Interim Dividend

+7%

S$2.46b

YoY

28 cents

ROE (annualised)

+0.2ppt

11.0%

YoY

Net Interest Margin

Customer Loans

Customer Deposits

1.63%

S$298b

S$349b

+6bps

+8%

+10%

YoY

YoY

YoY

NPL Ratio

Credit Costs

CET1 CAR

1.3%

-0.2ppt

7bps

-19bps

14.9%

-1.2ppt

YoY

YoY

YoY

Performance review

• Group 1H net profit at new high
• Net interest income at new high from asset growth and rise in NIM
• Non-interestincome lower on decline in fee, investment and trading income
• Higher expenses largely driven by continued investments in talent and technology
• Sustained momentum in loans and deposits growth
• NPL ratio declined to 1.3% from 1.5% a year ago
• Credit costs lower at 7bps led by lower allowances for impaired loans
• Interim dividend up from 25 cents a year ago

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Financial Highlights

Performance review

Banking

Wealth Management

■ Resilient performance across

the Group's diversified

Net Profit (S$m)

	+15%
2,095	2,419
968	1,244
1,128	1,175
1H21	1H22
1Q	2Q

	NII and Fee Income (S$m)
		+4%
2Q22	3,946	4,105
YoY:	2Q22
+29%			YoY:
QoQ:	1,970	2,135	+8%
+6%	QoQ:
			+8%
	1,975	1,970
	1H21	1H22
	1Q	2Q

WM Income (S$m) 1/

40%	35%
-11%
2,186	1,944	2Q22
360
412	YoY:
599	+8%
621
567	QoQ:
339
+13%
660	572
1H21	1H22
1Q	2Q
Banking	Insurance

As % of Group income

WM AUM (S$b)

-1%

-0.5%

254	251	250
Jun 21	Mar 22	Jun 22

franchise

■ 2Q22 banking operations net

profit rose YoY, underpinned

by operating profit growth

and fall in allowances

■ 2Q22 WM income increased

8% YoY and 13% QoQ

Customer Loans (S$b)	Customer Deposits (S$b)
	and CASA ratio

Insurance

■ WM AUM lower YoY as net

new money inflows were

	+8%
	+1%
275	294	298
Jun 21	Mar 22	Jun 22

62.5%	62.7%	60.9%
	+10%
	+0.2%
317	348	349
Jun 21	Mar 22	Jun 22

Total Weighted New Sales (S$m)

	+15%
917	1,056	2Q22
	YoY:
535	551	+3%
	QoQ:
		+9%
382	505
1H21	1H22
1Q	2Q

New Business Embedded Value (S$m) and Margin

42.7% 37.2%

+0.5%

391

2Q22

393

YoY:

193

202

+5%

QoQ:

198

191

+6%

1H21

1H22

1Q

2Q

offset by a drop in market

valuations

■ Healthy growth in insurance

business with 2Q22 TWNS

and NBEV up YoY and QoQ

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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