First Quarter 2019 Results Presentation 10 May 2019 Disclaimer: - PowerPoint PPT Presentation

First Quarter 2019 Results Presentation 10 May 2019 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 Results Overview 1Q19 Group Performance Trends Appendix: Performance of Major Subsidiaries - Great Eastern Holdings - OCBC Wing Hang - OCBC Malaysia - Bank OCBC NISP 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; 2 - Figures may not sum to stated totals because of rounding.

Group performance 1Q19 Highlights Net profit up 11% YoY to S$1.23b, underpinned by record operating profit; ROE higher at 12.0% Summary Financial Performance Resilient and Sustainable Business Momentum Net Interest Income : S$1.53b; +8% (1Q18 : S$1.42b) ➢ Operating profit before allowances up 23% YoY to a new high of S$1.75b Non-interest Income : S$1.14b; +24% (1Q18 : S$0.92b) ➢ Net interest income rose 8% YoY from sustained loan growth Operating Expenses : S$1.10b; +6% and 9 bps uplift in NIM to 1.76% (1Q18 : S$1.03b) Allowances: S$0.25b ➢ Wealth management income increased 27% YoY, contributing (1Q18 : S$0.01b) 34% of the Group’s total income, up from 31% a year ago ROE: 12.0% ROA: 1.29% • Private banking AUM rose 6% YoY to a record US$108b (1Q18 : 11.8%) (1Q18 : 1.18%) from sustained net new money inflows Customer Loans: S$259b; +5% • Life insurance profit increased 40% YoY to S$233m (Mar 18 : S$247b) • Wealth management fee income rebounded QoQ, up 15% Customer Deposits: S$294b; +2% (Mar 18 : S$289b) ➢ 1Q19 CIR was 40.9%, improved from the 44.2% a year ago NPL ratio: 1.5% ➢ Customer loans expanded 5% YoY and deposits grew 2%; (Mar 18 : 1.4%) Loans-to-deposits ratio at 87.1% CET1 ratio: 14.2% (Mar 18 : 13.1%) ➢ Asset quality remained sound, NPL ratio stable at 1.5% Leverage ratio: 7.4% ➢ Funding and liquidity position remained strong (Mar 18 : 7.0%) All-currency LCR: 150% ➢ CET1 CAR rose to 14.2% from 13.1% a year ago (1Q18 : 149%) NSFR: 110% (1Q18 : 106%) 3

Group performance 1Q19 Group Performance Net profit rose 11% YoY and 33% QoQ to S$1.23b, driven by strong income growth 1Q19 1Q18 YoY 4Q18 QoQ OCBC Group S$m S$m +/(-)% S$m +/(-)% Net interest income 1,534 1,415 8 1,520 1 Non-interest income 1,142 918 24 830 38 Total income 2,676 2,333 15 2,350 14 Operating expenses (1,032) 6 (1,078) 2 (1,095) Operating profit 1,581 1,301 21 1,272 24 Associates 170 125 36 85 102 Operating profit before allowances 1,751 1,426 23 1,357 29 Allowances (12) nm (205) 22 (249) Amortisation of intangibles (25) (25) 1 (26) (1) Tax & NCI (246) (277) (11) (200) 23 Net profit 1,231 1,112 11 926 33 4

Banking Ops performance 1Q19 Banking Operations Performance Net profit for Banking Operations rose 15% QoQ to S$942m 1Q19 1Q18 YoY 4Q18 QoQ Banking Operations S$m S$m +/(-)% S$m +/(-)% Net interest income 1,510 1,397 8 1,499 1 Non-interest income 703 (1) 639 9 699 Total income 2,208 2,100 5 2,138 3 Operating expenses (972) 4 (1,016) ̶ (1,015) Operating profit 1,193 1,128 6 1,122 6 Associates 127 38 86 105 176 Operating profit before allowances 1,369 1,255 9 1,208 13 Allowances (12) nm (205) 21 (248) Amortisation, tax & NCI (179) (253) (29) (186) (4) Net profit from banking operations 942 990 (5) 817 15 123 136 109 167 GEH net profit contribution 290 OCBC Group net profit 1,231 1,112 11 926 33 5

Agenda Results Overview 1Q19 Group Performance Trends Appendix: Performance of Major Subsidiaries - Great Eastern Holdings - OCBC Wing Hang - OCBC Malaysia - Bank OCBC NISP 6

Earnings Performance by business and geography Earnings well-diversified across key business segments and geographies 1Q19 Operating Profit 1Q19 Profit before Tax by Business 1/ by Geography OCBC Wing Others Hang Global Corporate / 4% 8% Greater Investment 1Q19 1Q19 China Banking 19% 6% Insurance 9% 1Q18 1Q18 24% 38% 13% 21% 41% 50% 9% Indonesia 6% 8% 60% 15% 28% 11% 8% Malaysia Global Treasury 22% and Markets Singapore Global Consumer / Private Banking 1/ Operating profit before allowances and amortisation. Excludes the Others segment, which comprises mainly property holding, investment holding and items not attributable to the business segments. 7

Net interest income Net interest income Net interest income increased 8% YoY, from both loan growth and higher NIM; NIM rose 4bps QoQ to 1.76% underpinned by loan repricing in Singapore 1.76% 1.72% 1.72% 1.70% 1.67% 1.67% Net interest 1.65% margin (“NIM”) 5,890 5,423 1,534 1,520 1,505 1,450 1,415 Net interest income (S$m) FY17 FY18 1Q18 2Q18 3Q18 4Q18 1Q19 8

Non-interest income Non-interest income Non-interest income up 38% QoQ, led by higher fees and commissions, trading income and insurance profit 43.1% 42.7% Non- 41.4% 40.8% 39.3% 39.3% interest 35.3% income / Total income 4,105 1,142 3,811 1,039 1,024 918 276 918 911 225 234 830 560 52 154 206 Life & General 19 26 Insurance Non- 508 247 43 213 515 192 285 interest Net gains from 94 207 income 159 investment securities 65 39 54 80 (S$m) and others 9 34 35 Trading income Dividends & rental 2,031 1,953 536 income 518 502 495 474 Net fees & commissions FY17 FY18 1Q18 2Q18 3Q18 4Q18 1Q19 Note: Figures for FY17 were restated in accordance with SFRS(I) and change in accounting policy for Great Eastern Holdings (“GEH”). 9

Wealth management Wealth Management (“WM”) Franchise WM income up 52% QoQ, driven by higher insurance and private banking income; BOS’ AUM rose 6% QoQ to a new high of US$108b Bank of Singapore’s Earning Asset Base (US$b) Wealth Management Income 1/ 2/ (S$m) As % of Group income Dec 15 – Dec 18 CAGR 22% 131 125 121 97 23 34% 23 33% 22 31% 31% 29% 29% 68 18 26% 13 108 102 99 79 3,136 55 921 2,842 Dec 15 Dec 16 Dec 17 Dec 18 Mar 19 Loans AUM 761 748 727 Great Eastern’s Embedded Value 3/ (S$m) 607 Dec 14 – Dec 18 CAGR 7% 13,389 13,440 11,694 11,001 10,436 FY17 FY18 1Q18 2Q18 3Q18 4Q18 1Q19 Dec 14 Dec 15 Dec 16 Dec 17 Dec 18 1/ Wealth management income comprises the consolidated income from insurance, asset management, stockbroking and private banking subsidiaries, plus the Group's income from the sales of unit trusts, bancassurance products, structured deposits and other treasury products to consumer customers. 2/ Figures for FY17 were restated in accordance with SFRS(I) and change in accounting policy for GEH. 3/ An actuarial embedded value is a commonly used technique to estimate the economic value of the existing business of a life 10 insurance company.

Non-interest income Net Fees & Commissions Net fee income grew 4% QoQ to S$495m, led by growth in wealth management fees 23.0% 20.9% 21.0% 20.5% 20.2% Net fee 19.8% 18.5% income / Total income 1/ 2,031 1,953 310 299 536 95 518 502 94 495 474 74 79 78 73 Others 3/ 557 22 Net fees and 79 528 31 19 25 commissions Investment Banking 23 130 (S$m) 4/ 140 148 135 180 Loan, Trade & 180 138 54 Guarantees 45 41 40 Brokerage & Fund 41 Management 889 852 256 Wealth Management 2/ 223 221 217 193 FY17 FY18 1Q18 2Q18 3Q18 4Q18 1Q19 1/ Figures for FY17 were restated in accordance with SFRS(I) and change in accounting policy for GEH. 2/ Mainly comprising income from private banking, and sales of unit trusts, bancassurance products, structured deposits and other treasury products to consumer customers. 3/ “Others” includes credit card fees, service charges and other fee and commission income. 11 4/ Net of fee and commission expenses.

Operating expenses Operating expenses Expenses rose 6% YoY and 2% QoQ to S$1.10b; CIR was lower at 40.9% as income growth outpaced that of expenses 45.9% Cost-to- 44.2% 43.4% 42.4% 41.9% 42.0% 40.9% income ratio (“CIR”) 4,214 4,043 1,095 1,078 1,069 1,032 1,035 796 779 214 202 Others 218 176 200 Operating 812 Property & 793 expenses 204 216 194 200 equipment 202 (S$m) Staff costs 2,606 2,471 677 662 660 651 633 FY17 FY18 1Q18 2Q18 3Q18 4Q18 1Q19 Headcount (period end) 29,444 29,612 29,719 29,706 29,958 Note: Figures for FY17 were restated in accordance with SFRS(I) and change in accounting policy for GEH. 12

Allowances Total cumulative allowances Total allowances set aside complied with requirements set out in SFRS(I) 9 and the revised MAS 612 3,067 2,800 2,798 2,769 2,695 Regulatory Loss 674 Total Allowance Reserve 453 474 353 534 (“RLAR”) cumulative allowances (S$m) Allowances for 1,034 1,055 non-impaired 1,115 1,130 1,014 assets Allowances for impaired assets 1,359 1,269 1,212 1,232 1,221 Mar 18 Jun 18 Sep 18 Dec 18 Mar 19 13