2019 - 5 Years Financial Highlights
OCBC Group Performance Q1'20
Revenue $2,490 - 7% yoy, -15% qoq
Operating profit before allowance - 12% yoy & qoq
Net profit -43% yoy, -44% qoq
Banking
Revenue $2,373M +7% yoy, - 4% qoq
Operating profit before allowance + 8% yoy, +3% qoq
Net profit -28% yoy, -22% qoq due to increase in allowance.
Great Eastern
Revenue $69M -82% yoy, - 78% qoq
Operating profit before allowance -90% yoy, -88% qoq
Net profit -94% yoy, -92% qoq due to unrealised MTM lossess.
Management Statement Q1'20
OCBC well-positioned for this unprecedented crisis
Extent of economic fallout very uncertain, recovery unlikely until 2021 at earliest; watchful of impact to
near-term earnings growth
Maintain long-term strategy; well-diversified franchise with strong capital, liquidity and funding position
Confident of OCBC’s strong track record of delivering sustainable earnings over economic cycles
Ex-FX impact, loan growth to be muted; will continue to pro-actively support customers
Shore up allowances with forward-looking MEVs to recognise uncertain operating environment
Overall cumulative credit costs over the next two years estimated to be between 100-130bps, higher
than GFC, close to SARS but lower than AFC. Variance depends on effectiveness of the relief programmes and the duration of suspension of business activities across the region
Remain vigilant of vulnerable sectors. Near-term economic weakness and uncertainty to raise NPL
ratio to between 2.5% to 3.5%; NPL ratio reflects extent of projected effect of government relief
measures
NIM compression expected in subsequent quarters from full effect of rate cuts; focus on asset
composition and CASA deposits
Cost management to be further tightened and managed in line with revenue expectations
Monitor market developments closely to assess dividend payment; share buybacks suspended, priority
to support customers and franchise during this pandemic
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