OCBC - Oversea-Chinese Banking Corporation Limited

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Name:  Oversea-Chinese Banking Corporation Limited

ISIN/WKN:  SG1S04926220/A0F452

Webseite:  https://www.ocbc.com/group/investors/index.page

 

 

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Corporate Profile

OCBC Bank is the longest established Singapore bank, formed in 1932 from the merger of three local banks, the oldest of which was founded in 1912. It is now the second largest financial services group in Southeast Asia by assets and one of the world’s most highly-rated banks, with an Aa1 rating from Moody’s. Recognised for its financial strength and stability, OCBC Bank has been ranked Asean’s strongest bank and among the world’s five strongest banks by Bloomberg Markets for five consecutive years since the ranking’s inception in 2011.

OCBC Bank and its subsidiaries offer a broad array of commercial banking, specialist financial and wealth management services, ranging from consumer, corporate, investment, private and transaction banking to treasury, insurance, asset management and stockbroking services.

OCBC Bank’s key markets are Singapore, Malaysia, Indonesia and Greater China. It has over 630 branches and representative offices in 18 countries and regions. These include the more than 330 branches and offices in Indonesia under subsidiary Bank OCBC NISP, and more than 90 branches and offices in Hong Kong, China and Macau under OCBC Wing Hang.

OCBC Bank’s private banking services are provided by its wholly-owned subsidiary Bank of Singapore, which operates on a unique open-architecture product platform to source for the best-in-class products to meet its clients’ goals.

OCBC Bank's insurance subsidiary, Great Eastern Holdings, is the oldest and most established life insurance group in Singapore and Malaysia. Its asset management subsidiary, Lion Global Investors, is one of the largest private sector asset management companies in Southeast Asia.

 

Annual Report 2023

OCBC Group First Half 2024 Net Profit Up 9% to a Record S$3.93 billion

 

OCBC Q2 profit up 14% to $1.94 billion, bank to weigh its options for Great Eastern

 

 

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On OCBC’s bid to acquire the rest of Great Eastern Holdings (GEH) and delist the insurer, group chief executive officer Helen Wong said the bank will continue to evaluate its options. It will do so over the three months from July 23, when the bank announced that minority shareholders who had not sold their shares to the bank could still do so under the terms of the offer. 

OCBC’s offer closed on July 12 with the bank holding 93.32 per cent of GEH’s shares, not enough to trigger a compulsory acquisition. GEH has been suspended from trading since July 15, when the number of its shares in public hands fell below the 10 per cent free float threshold.

Ms Wong said on Aug 2 that any future offer for GEH will be in the interest of OCBC and its shareholders. GEH shareholders have until Oct 23 to accept OCBC’s offer on the same terms under the bank’s bid in May.

Separately, GEH said on Aug 2 that it was granted an extension of time to restore its public free float, until the final shareholding of OCBC is known after Oct 23.

 

Aktuell versucht die Bank den Versicherer Great Eastern vollständig zu übernehmen. 

 

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Here’s the thing.

If and when OCBC crosses the 90 per cent suspension point, SGX will halt trading of GE shares after July 12. But the counter will remain listed, assuming OCBC has not received 75 per cent acceptances to take its stake to 97 per cent.

At this point, those still holding GE shares will be in a limbo. They can’t sell because trading is suspended. They can’t get out because GE can’t delist in the absence of an exit offer for the remnant shareholdings. The campaign to extract a higher payout could instead lead to the prisoner’s dilemma of game theory, where everyone is hurt by a sub-optimal outcome.

Great Eastern shareholders who hold out on OCBC offer could face long wait for next exit

 

 

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OCBC says 2024 targets on track after Q3 profit beats forecast with 9% rise to $1.97 billion

 

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OCBC said it was firmly placed to achieve its 2024 targets after posting a 9 per cent rise in third-quarter net profit that beat market expectations.

Southeast-Asia’s second-largest lender by assets after compatriot DBS said July-September net profit increased to $1.97 billion from $1.81 billion a year earlier, beating the mean estimate of nearly $1.91 billion from analysts polled by LSEG.

OCBC said it was set to achieve full-year net interest margin, a key profitability gauge, at around the 2.2 per cent level, as well as low single-digit loan growth, full-year credit costs in the range of 20 basis points and return on equity above 14 per cent.

 

OCBC’s improved performance was also driven by increased wealth management activity that lifted fee and trading income, in addition to higher insurance income and lower allowances.

Net interest margin was however lower at 2.18 per cent during the quarter from 2.27 per cent a year earlier, a trend similar with DBS and UOB too.

OCBC’s return on equity rose slightly to 14.1 per cent in the third quarter from 14 per cent in the same period of 2023.

 

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From banks to tech: Potential Singapore winners from the Johor-Singapore SEZ

 

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SINGAPORE and Malaysia have established a new Johor-Singapore Special Economic Zone (JS-SEZ) that will drive investments in key sectors.

The 11 key sectors are: manufacturing, logistics, food security, tourism, energy, the digital economy, green economy, financial services, business services, education and health.

Both countries have aimed for 100 projects in the next 10 years, and to create 20,000 skilled jobs.

Macquarie in another report was bullish on Singapore banks, zooming in on two of them.

“Both Malaysian and Singaporean banks could facilitate more investment and trade, with UOB and OCBC having sizeable operations in both markets,” said Macquarie analysts.

Banks and financials: Over the past five to six years, Singapore banks have been investing in efforts to regionally integrate their wholesale and retail banking. This has enabled them to capture and facilitate supply chain shifts from North Asia to Asean, said the bank.

Maybank’s picks: OCBC, UOB. Both banks have a “well-entrenched” Malaysian and Asean footprint. 

 

Johor-Singapore SEZ “an ecosystem that complements one another” - Youtube

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OCBC to return $2.5b capital via special dividends and share buybacks, Q4 profit misses estimates

 

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SINGAPORE - OCBC Bank on Feb 26 announced it will return $2.5 billion of capital to shareholders over two years via special dividends and share buybacks, as the bank delivered a record profit of $7.59 billion for 2024.

OCBC plans to pay a final ordinary dividend of 41 cents per share for 2024, down from 42 cents in 2023. Including the interim dividend, total ordinary dividend for 2024 will be 85 cents per share, higher than the 82 cents for 2023.

The total payout will amount to $3.82 billion, which is in line with the group’s target payout ratio of 50 per cent, said OCBC.

It also proposes a special dividend of 16 cents per share, bringing total dividend to $1.01 per share, which represents a total payout ratio of 60 per cent for 2024.

Local peers DBS and UOB have also announced capital returns on the back of record earnings.

For the fourth quarter of financial year 2024, OCBC’s net profit rose 4 per cent year on year to $1.69 billion. The earnings missed the $1.81 billion forecast by analysts in a London Stock Exchange Group poll.

For financial year 2024, the group’s net profit grew 8 per cent from a year ago to a record $7.59 billion, driven by robust income growth and lower allowances.

For its 2025 outlook, OCBC cautioned that trade tensions could impede global growth and trade, but noted that Asean economies are likely to remain resilient and well positioned to benefit from supply chain shifts. OCBC also said it will continue to keep an eye on escalating geopolitical complexities and growth opportunities.

 

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OCBC keeps 2025 earnings guidance amid uncertainties; Q1 profit falls 5% but beats forecast

 

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SINGAPORE – OCBC Bank has maintained its 2025 earnings guidance despite warning of a challenging economic environment and posting a 5 per cent decline in first-quarter earnings.

Net profit for the three months to March 31 came in at $1.88 billion, down from $1.98 billion a year earlier, mainly on lower net interest income.

The decline – OCBC’s first quarterly earnings fall since the first three months of 2022 – still beat the $1.86 billion forecast by analysts in a Bloomberg survey.

Total allowances were 25 per cent higher at $212 million as the bank adopted a prudent approach in view of the uncertain operating environment ahead.

OCBC has maintained all its 2025 financial targets, including net interest margin in the region of 2 per cent, mid-single-digit loan growth and credit costs in the range of 20 to 25 basis points, noted chief executive Helen Wong on May 9.

Ms Wong told a results briefing that the bank still expects three rate cuts in the US in 2025 but warned that the outlook may change, given market uncertainties.

Ms Wong said the bank remains committed to deliver the 60 per cent dividend payout ratio and has commenced share buybacks in a $2.5 billion capital distribution plan announced in February.

OCBC’s results followed those of UOB and DBS Bank this week.

All three banks flagged tariff uncertainties but said they were well-cushioned with strong balance sheets and have boosted allowance reserves to offset potential non-performing assets.

While DBS and OCBC broadly maintained their 2025 earnings guidances and met analyst forecasts, UOB suspended its earnings outlook, citing tariff uncertainties, as it reported earnings below estimates.

 

 

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OCBC Q2 profit drops 7% as interest rates fall; CEO flags tariff headwinds

 

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SINGAPORE - OCBC Bank posted a 7 per cent fall in earnings for the second quarter, as declining interest rates weighed on net interest income.

Net profit for the three months to June 30 was $1.82 billion, down from $1.94 billion a year earlier. Still, the figure beat the $1.79 billion forecast in a Bloomberg poll.

The bank also declared an interim dividend of 41 cents per share, down from 44 cents a year ago. The interim dividend payout will amount to $1.84 billion, representing a payout ratio of 50 per cent.    

 

At a results briefing on Aug 1, outgoing chief executive officer Helen Wong said the first-half performance benefited from better-than-expected growth across the region and front-loading activities ahead of US tariffs. 

However, geopolitical tensions and the potential inflationary impact from tariff shocks continue to cloud the operating environment in the second half, she said.

The bank forecasts global and regional growth to slow in the second half-year, but expects its strong balance sheet and capital position to navigate volatilities.    

 

Earlier this week, OCBC subsidiary Great Eastern (GE) said shareholders will receive forms from July 29 to choose whether to take up non-voting shares or receive bonus ordinary shares, a move that will determine whether the insurer can resume trading.

The development comes after a proposed delisting resolution failed to pass at GE’s extraordinary general meeting. OCBC’s conditional exit offer of $30.15 per share also lapsed.

When asked about next steps should the trading resumption not happen, Ms Wong said the bank’s aim is to increase its stake in GE and support GE in resuming trading.
“We increased our stake in GE as we have planned... Nobody guarantees that you can achieve the listing because it is up to minority shareholders. But the whole point is we did increase so that means GE’s contribution to OCBC Group will be bigger going forward. We also said that the exit offer is to support GE to resolve the suspension.”

She said the next step is to wait for the outcome of the bonus issue. OCBC does not have any immediate plans to launch another exit offer, she added.

Those opting for non-voting shares are expected to respond by Aug 7.

 

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Still ‘more things to be done’ to reap synergies across OCBC: CEO-designate Tan Teck Long

 

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[SINGAPORE] OCBC’s incoming chief executive wants to continue building on the bank’s cross-selling and integration strategy.

“We are an integrated financial services group, so there will be synergies to be reaped from working better together,” said Tan Teck Long, deputy CEO and head of global wholesale banking at OCBC, in an interview with The Business Times.

Under outgoing CEO Helen Wong, OCBC embarked on a corporate strategy refresh in 2022 that focused on capturing Asean-Greater China trade and investment flows and rising Asian wealth.     

 

This is done through its “one group” approach – it is looking to integrate customer experience and tap synergies within the group to drive growth and efficiency.

Tan, who succeeds Wong on Jan 1, 2026, said the bank has managed to get synergies out of its first three-year strategy, but “there are more things to be done”.

“We are in a very privileged position – we have an insurance business of scale, banking operations, and a wealth and asset management business,” he said.     

 

“There’s still a next level of collaboration we can think about.”

Wholesale banking targets met

Currently, Tan is still focused on meeting OCBC’s target to add S$3 billion in revenue by 2025, through its focus on the Asean-Greater China region across its business segments.

But as the incoming CEO of the bank, he is also looking across functions to understand other parts of the business, while charting a new strategy.

 

Tan is still optimistic about the growth prospects of the Asean region, especially when it comes to investments from the Greater China region.

He noted that his wholesale banking business had already met most of the targets that he had set in 2023 as part of the corporate refresh.

It exceeded its transaction banking target in Greater China two years ahead of time, with close to 600 regional mandates secured as at June 2025. It originally aimed to achieve more than 500 regional mandates for cash management by 2027.

The bank’s plan to double investment banking revenue in the Greater China region by end-2025 is also on track, with key drivers in syndicated loans and bond issuances.

In addition, OCBC targeted a more than 50 per cent increase in its Greater China franchise revenue in Asean by 2025 – it had achieved this target ahead of time for the past two consecutive years, and expects it will be on track to achieve it again by end-2025.

Meanwhile, the bank expects to have doubled its acquisition of small and medium-sized enterprise (SME) customers by end-2025, compared with 2023. It planned to get more than 26,000 new SME customers from 2023 to 2025.

Even though Chinese customers are currently taking a pause because of the uncertainty around tariffs, they are still very interested in South-east Asia in the mid to longer term, Tan said.

The region not only has geographical proximity to China, it also has an attractive market in terms of both natural resources and demographics, he said.

The China plus one story also remains intact, he added.

Companies still have an objective to diversify their operations for supply chain resilience, and South-east Asia is a “very attractive place” for that purpose.

“For all investment decisions, there are other things to consider, such as the competitive advantage of the country they invest in, political stability, transportation and logistics,” he said.

Tariff impact

Whether countries emerge as winners or losers will depend on the difference in tariffs within the region, Tan said.

He expects that as long as the whole Asean is in the same tariff range, it will not affect the decision to invest in a particular country.

For OCBC, loan growth remained healthy even after US President Donald Trump’s “Liberation Day”, driven by industries that derived demand domestically or from the region.

Clients are still active, albeit cautious, about their longer-term investment decisions, he said.

Nevertheless, companies involved in exports have experienced a slowdown. Tan said: “Our advice to them is to let the air be clear before they make the investment decision.”

But overall, there is still global trade and consumption going on outside of the US, he noted.

“To that extent, (even though) the US imposed tariffs, I expect the intra-Asia trade to continue to grow.”

Structurally, it is also difficult to bring all manufacturing back into the US.

“Also, there’s no need to, because not every industry is equal in terms of importance to the US. So maybe they would bring back some sensitive industries. But generally, for most industries, it makes sense to actually look at sourcing from outside the US,” he said.

Furthermore, China remains a manufacturing juggernaut, he said.

“So to diversify away from China, you actually need multiple countries or even multiple regions… So from that perspective, South-east Asia is definitely a region which is attractive to investors.”

 

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Impact of tariffs, trade restrictions not fully played out, but no systemic risk yet: OCBC

 

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OCBC is still monitoring the impact of tariffs and trade restrictions, as it likely has not fully filtered through the economy.

But the bank has been able to navigate the uncertainty “quite well”, and still sees growth in certain sectors, said deputy chief executive Tan Teck Long.

Group CEO Helen Wong added that the lender is comfortable with the quality of its portfolio, given that it has not seen any systemic risks.

“We are closely watching risks arising from trade tariffs, but we’ve talked about it for the last three quarters already,” she added. “There is, of course, potential impact, but we have been tracking (it) well; our customers have been managing quite well (also).”

Tan and Wong were speaking at OCBC’s third-quarter results briefing on Friday (Nov 7).

The lender’s non-performing asset coverage ratio of 160 per cent is “quite satisfactory”, and its allowances for non-impaired loans are at 0.9 per cent, Wong said.

 

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The bank is still “particularly cautious” about the Hong Kong commercial real estate segment, she noted.

Nevertheless, Tan highlighted bright spots in the digital infrastructure sector, and industries that have domestic demand, such as construction.

The bank is also monitoring the impact of interest rates, he said.    

 

While the overall market is still cautious about investing, lower rates benefited the bank as it led more wealth customers and corporates to come on board or evaluate risks in their investments.

Total allowances for the nine-month period ended September were down 4 per cent at S$466 million, due to lower allowances for impaired assets despite higher allowances for non-impaired assets.

The lender set aside pre-emptive allowances for trade tariffs and macro uncertainties, mainly to reflect the weaker economic outlook.   

 

Q3 results

OCBC’s net profit for Q3 was flat at S$1.98 billion, beating the S$1.79 billion consensus forecast in a Bloomberg survey of five analysts.

This was supported by higher non-interest income and lower allowances.

Net interest income for the quarter was down 9 per cent on the year at S$2.23 billion due to a decline in net interest margin (NIM), although this was partly offset by average asset growth.

NIM stood at 1.84 per cent, down eight basis points quarter on quarter, largely due to faster downward repricing of loans – the decline of benchmark rates for the Singapore dollar and other currencies outpaced the decline in deposits costs.

Loans were up 7 per cent at S$327 billion, driven by both consumer and corporate loans.

Deposits rose 11 per cent on the year to S$411 billion, mainly due to an increase in current and savings accounts (Casa).    

 

Reaches S$3 billion target

Wong also noted that OCBC achieved its goal to add S$3 billion in revenue through its Greater China-Asean strategy as at the end of September, ahead of its target of end-2025.

“Hopefully, we’ll end the three-year plan quite ahead of schedule and also above (what is planned),” she said, in her final media briefing as group CEO of OCBC.

“That means the initiatives we put together and of how we work as one group have borne fruit, and this will shape up well as a firm foundation to capture growth opportunities going ahead.”