Full Year 2022 Results Presentation

Goh Chin Yee, Group Chief Financial Officer 24 February 2023

OCBC Financial Results

Agenda

Financial Highlights

Group Net Profit

Group Performance Trends

Appendices: Major Subsidiaries' Results

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

3

Record 2022 full year profit, dividend raised 28%

Performance highlights

Group

FY22: S$5.75b +18% YoY

Net Profit

Banking

Operations FY22: S$5.10b +30% YoY

Net Profit

Dividend

68 cents +15 cents YoY

EPS

S$1.27

+18% YoY

ROE

11.1%

+1.5ppt YoY

Total Income

YoY

S$11.7b

+10%

Net Interest Income

+31%

Non-Interest Income

-16%

Operating Expenses

S$5.03b

+5%

Net Interest Margin

+37bps

1.91%

Credit Costs

16bps

-13bps

Customer Loans

+2%

S$295b

(in constant currency terms) +4.5%

Customer Deposits

S$350b+2%

NPL Ratio

1.2%-0.3ppt

CET1 CAR

15.2%-0.3ppt

  • Total income at new high, driven by strong Banking Operations performance
  • Record NII benefitting from rising interest rates and well- positioned balance sheet
  • Positive operating jaws, CIR lower at 43.0%
  • Credit costs lower than 2019 pre-pandemic level
  • Continued loan and deposit growth momentum
  • Resilient portfolio quality
  • Dividend payout at 53%, target 50% payout going forward

4

Strong momentum across all key business pillars

Performance highlights

Banking: Profits at record high

Wealth Management: Positive NNM inflows

Net Profit (S$m)

+30%

NII and Fee Income (S$m)

+18%

WM Income (S$m) 1/

WM AUM (S$b)

36% 38% 33%

+0.5%

-3%

■ Banking Operations net

profit exceeded S$5b mark

for the first time

5,105

3,926

2,788

9,330

7,770

7,884

3,642 4,011 3,887

1,275 1,594 1,288

2,367 2,417 2,599 Banking

+8%

FY20 FY21 FY22

Banking Insurance

240

257

258

Dec 20

Dec 21

Dec 22

■ WM income from Banking

Operations at new high

YoY rise in AUM driven by

continued NNM inflows

FY20

FY21

FY22

FY20

FY21

FY22

As % of Group income

which offset negative

market valuation

Customer Loans (S$b)

+4.5%

in constant

currency terms

Customer Deposits (S$b) and CASA ratio

60.3% 63.3% 51.8%

Insurance: NBEV and margin higher YoY

Total Weighted New Sales

New Business Embedded

(S$m)

Value (S$m) and Margin

■ Insurance NBEV and

margin rose YoY on

267

290

295

Dec 20

Dec 21

Dec 22

+2%

315

342

350

Dec 20

Dec 21

Dec 22

1,544

-3%

1,965 1,908

43.4%

40.9%

45.8%

+9%

670

804

875

favourable product mix

Embedded Value2/ was

S$17.9b as at 31 Dec

2022

FY20 FY21 FY22

FY20

FY21

FY22

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

2/ Embedded value is a measure of the long-term economic value of the existing business of a life insurance company.

5

Attachments

Disclaimer

OCBC - Oversea-Chinese Banking Corporation Ltd. published this content on 23 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 February 2023 00:10:11 UTC.