Oversea-Chinese Banking Corporation

Good morning. Good morning, everyone. Thank you for joining us to our third quarter results briefing. This results briefing will be Ellen's last results briefing. And so, of course, we all wish her all the best. And from the fourth quarter and full year results, we'll see Egg Bum Tong Ming next year. Okay, so without further ado, I'll pass the time to Ginny to take us through our results.

Good morning, everyone. Thank you for joining us in OCBC's 3Q 2025 Results Briefing. Our 3Q 2025 Group Net Profit was S$1.98 billion, up 9% from last quarter and largely unchanged from a year ago. This was our second highest quarterly net profit. ROE was an annualised 13.4%. Total income grew 7% from previous quarter. The growth was driven by record non-interest income, which more than compensated for the decline in net interest income. NII fell 2% to $2.23 billion quarter-on-quarter amid declining benchmark rates. We continue to prioritise asset growth to support NII. Non-interest income rose 24% to $1.57 billion, driven by fee, trading and insurance income. The strong results were supported by a wealth management franchise which continued to scale and delivered record wealth management income. Our insurance business also contributed strongly, reinforcing the benefits of our diversified income streams. Loans and deposits continued to register healthy growth, up 7% and 11% respectively year-on-year. Asset quality remained resilient. NPR ratio stable at 0.9% for the past six quarters. Total credit costs in third Q of 25 were 16 basis points on annualized basis. Total MPA coverage was 160%. Our capital position remained sound. Common equity tier one ratio was 16.9% on a transitional basis and 15% on a fully phase-in basis. With our solid 3rd quarter earnings, our 9 months of 2025 group net profit reached $5.7 billion, 4% below 9 months of 2024. The strength of our one group franchise is reflected in the performance across our banking, wealth management and insurance pillars. Our banking net profit grew 3% from last quarter, demonstrating resilience despite a declining interest rate environment. Double-digit growth in non-interest income more than compensated for the moderation in NII. Wealth management income and AUM were at record highs. Our wealth management income grew 25% to $1.62 billion, contributing 43% to group total income. Banking AUM rose 18% year on year and 8% Q on Q to $336 billion, driven by net new money inflows and positive market valuation. Net new money inflows were 12 billion in third quarter, above the run rate for the past two quarters of about 4 to 5 billion. Year-to-date nine months, net new money inflows were 21 billion. On insurance, corporate contribution from GEH grew 50% Q on Q to 347 million. This was driven by improved investment performance from insurance and shareholders' funds. GEH New Business Embedded Value, or NBEF, rose 9%, and NBEF margin improved to 48.8%, reflecting GE's strategic shift towards higher-margin products. Moving on to details of our group performance trends, starting with NII on slide eight. NII for the quarter came in at 2.23 billion, 2% lower from last quarter. Average assets grew 1%, but this was offset by an eight basis point decline in NIM to 1.84%. Referring to the waterfall chart on NIM, NIM narrowed primarily from lower loan yields, which reduced margin by 21 basis points. This was driven by the fall in benchmark rates, particularly the average rates for Sora and Hibor. The progressive reduction in our funding costs, as well as cash flow hedges, partly mitigated the compression in loan yields. About half of our loan book is denominated in Sing Dollar and Hong Kong Dollar. For these currencies, around 80% of our Sing Dollar loans and almost all Hong Kong Dollar loans are either on floating rates or due for repricing within a year. The exit name for September was 1.84%. At end September, our NIMS sensitivity, based on 100 basis points, dropped in rates across our four major currencies of Singapore dollars, Hong Kong dollars, Malaysian ringgit, and US dollars, was about 11 basis points on an annualized basis. On NII, sorry, on non-interest income now. Before the quarter, non-interest income was up 24% Q1Q, supported by broad-based growth across fee, trading and insurance income. For the nine-month period, non-interest income grew 10% year-on-year to a new high of $4.14 billion, lifted by the same growth drivers. Fee income was a key contributor, increasing 24% to $1.8 billion. Our fee income reached $683 million in the third Q of 25, up 18% Q on Q and 34% year on year, driven by higher corporate as well as wealth customer activities. As can be seen from the chart, our fee income has maintained an upward trajectory over the past five quarters, contributed mainly by the strong momentum in wealth management. The record third quarter wealth management performance lifted our nine-month fee income to a new high of $1.8 billion, up 24%. Wealth management fees surged 35% to $923 million, contributing more than half of fee income. Compared to last year, customers deployed more funds into investments across all wealth segments, with around 60% of banking AUM invested. Trading income for the quarter was $518 million, up 38% Q on Q. The strong growth was driven by customer flow treasury income, which was at a quarterly high. non-customer flow trading income also improved, reflecting better investment performance across our global markets portfolio as well as GE's shareholders' funds. For the nine-month period, trading income was up 4% to $1.29 billion, underpinned by record customer flow treasury income. The growth was contributed by both wealth and corporate segments. Moving on to expenses. Our operating expenses continue to be well managed, even as we invest strategically for growth. For the nine-month period, operating expenses rose by 3% year-on-year. Cost-to-income ratio was held below 40% at 39.3%. Our loan book remains well diversified across geographies and sectors. Loans grew 7% year-on-year and 1% quarter-on-quarter to $327 billion. Growth over the past year was broad-based across consumer and corporate segments. In particular, the transport, storage and communications sector grew the most in capturing opportunities in the new economy sectors and high-growth industries. Singapore housing loans also grew as we build market share. Sustainable financing continues to gain traction. Loans grew 17% year-on-year to $55 billion and now accounts for 17% of our total group loans. Our overall loan portfolio quality remains sound. NPR ratio stable at 0.9%. NPAs declined by 1% Q on Q, largely due to higher recoveries, upgrades and write-offs, which more than compensated for new NPAs. We remain vigilant and continue to conduct ongoing reviews of our loan portfolio including assessments on the potential impact of trade tariffs. Total allowances for 9 months of 2025 were $466 million, down 4% due to lower allowances for impaired assets. Allowances for non-impaired assets were higher. This included pre-emptive allowances set aside for trade tariffs and macro uncertainties and adjustments of MEB updates mainly to reflect the weaker economic outlook. Credit costs for 9 months were at an annualised 17 basis points. Our third Q25 allowances were higher quarter on quarter as we set aside allowances for impact assets. Our NPA coverage ratio was around 160% over the past five quarters. Allowances for non-impact loans maintained at 0.9% of total performing loans. Moving on to deposits. Customer deposits rose 11% year-on-year and 1% Q-on-Q to $411 billion. NASA deposits grew by $27 billion or 15% year-on-year across both corporate and consumer segments. NASA ratio improved to 50.3%. Our strong deposit franchise contributed to 80% of our funding structure. All funding and liquidity ratios are well above regulatory requirements. Moving on to capital. Our capital position remains strong. CET1 ratio was 16.9%, broadly stable quarter on quarter. On a fully-facing basis, our CET1 ratio was 15%. Our robust balance sheet and capital position enable us to pursue growth opportunities, navigate uncertainties, and enhance shareholders' returns. With this, I end my presentation. Thank you. And I will now hand the floor over to Helen.

Thank you, Xinyi. Good morning, everyone. As usual, very happy to see faces. I always say that because when I started, we can't see faces. It was COVID. So it's always good to have you at the office. Just want to start with some comments on the third quarter results. Of course, it is our strongest quarter this year. and it's the second highest on record. I think we lost out, this quarter lost out to first quarter 24 by like 4 million. Yeah, so, and it's all in all a very good quarter. Of course, net profits up queue on queue by 9% and 1.98 billion, of course, and it's closest, as we said, closest to first quarter 24. I think we achieved this despite a declining general environment. through a few things. I think the first thing has to mention is the ability of our diversified business pillars, right? And producing or generating balanced earnings through economic cycles. And as covered by Xinyi, NII and NIM moderated, but our non-interest income rose 24% quarter on quarter to a new high, with double-digit growth across on fees, on training and insurance income as well. So to sustain our NII, we are focused on asset growth. I did mention before in some of the other briefings, interest rate cycles, they're always interest rate cycles, they're always up and down. You cannot rely on high interest rate to generate a wider margin. So the crux of the matter is always to focus on growth. And asset growth is important to defend the NII. But equally important is to manage the funding costs. so growing deposits in the right manner especially lower cost deposits is key as well so I think we have been able to and we continue to focus on driving regional account openings for corporates and also for commercial banking customers and capturing a lot more cash management mandates cash management mandates are important as they bring in the money and the operating account are normally not fixed deposits because they work on it. And indeed, as you gather the cash management mandate, that means the remittances, the ethics, everything comes in as well. So this is what is important. So our robust non-interest income also reflected results of our strategic actions to strengthen our franchise, be it in wealth and be it in our cross-border capital flow. Our sustainability, as Chin Ye has mentioned, our sustainable finance keep going well. And also some of the newer economy customers that we're able to start to bank with more and more. Wealth management strategy, of course, continue to play out positively. We are well positioned for long-term growth. As shared by Chin Yee, net yield money for the third quarter is Singapore dollars 12 billion. And this is quite good, well spread across and contributed by all segments. By that, we mean the private banking side, our Premier, private and our premier customer wealth segments. Quarterly, wealth management fees and income grew to record levels with sustained momentum across all segments as well and product channels. We do talk about investing in more relationship managers, but our wealth platform has been very effective for our customers. And indeed, whenever we come up with new products, we will be able to apply across our wealth platform for different segments. Of course, we check the suitability, right? But that means whenever we invest in anything, we can consider to launch on the same platform, which makes our channels very effective. We continue to deepen our regional private banking and premier banking franchise. RM Bank Strength, we talk about private banking and also our PPC segment having more RMs. But I think importantly is the products that we develop and the advisory capabilities across the wealth spectrum, including insurance. I think productivity also is another key. Recently, we did announce using AI to have our RMs to do KYC, which significantly shortened the time spent, meaning they have more time facing their clients, but will continue to be effective and productive. Trading income, we're happy with it as well, rose 38% kill on kill. It's now above 500 million in the third quarter. As customer flow, our treasury income hits are all time high. This is again both for wealth and also for corporate customers as we build on cross-selling as one group. And this is not just in Singapore but across geographies as well. For insurance, a profit contribution from GE was up 50% Q1Q. GE indeed is working on increasing collaboration with the whole group. and I would say insurance plays an essential role in our wealth management business. We have also seen more insurance policy working together with the trust side as a way to protect the wealth of our customer. So we always talk about a wealth continuum. This is what we have been working on and it is important that we continue to have that. So cost-to-income ratio is around 40%. Of course, we exercise quite a good cost discipline as well. And important to continue to invest in our business, in our people, and also in technology. This is indeed for future growth. Asset quality is some. NPL ratio held steadily. at 0.9% since June 2024. And we are closely watching with rising from trade tariffs, but we talked about it for the last three quarters already. So I think there is of course potential impact, but I think we have been tracking well, our customers have been managing quite well as well. One sector we remain particularly cautious, of course, Hong Kong CRE. It's a question that some of you will raise, but indeed we have been quite cautious. We're comfortable with current level of allowance coverage. I think 160% as a NPL coverage is quite satisfactory. And then coverage on performing loans is at 0.9%. Our loans will also grow, I think 7% and 4% on a constant currency basis. We have gained a market share in Singapore mortgages. For one example, we have a partner care program, which we work very closely with property agents to encourage them to bank with us more. and also through their referral customers and mortgages to us as well. For corporates, we continue to expand, deepen relationships with new to bank customers, as well as supporting customers across our international network. So that is not limited to ASEAN and Greater China, but through our major international branches as well. I'll pass to Teck Long later to talk a bit about that. Stripping the page, of course, we always say there is uncertainty. Uncertainty becomes more complex as well. But happy to say that global trade and most major economies have shown signs of resilience. And of course, this year in particular, supported by some front-loading for trade and also technology upcycling, particularly for Asia. For this year, we are keeping to our previous guidance on our financial numbers, except for LIM we want to, and we are changing it to around 1.9% from the previous 1.9 to 1.95%. Looking ahead, I think as we said, operating conditions continue to be complex and 2026 may see slower economic growth across various countries and geographies. and of course trade policies can continue to shift. Geopolitical tensions are still there and that could have an implication on the demand and supply chains of our key markets. But we do feel that the fundamentals remain resilient and we are positive on the mid to longer term growth prospects as well. Also want to report on our strategy I think we refreshed our corporate strategy in 2022. We talked about a three-year plan of incremental revenues of 3 billion Singapore dollars. Glad to report by end of September, we have already surpassed that goal of 3 billion. So hopefully we'll add the three-year plan quite ahead. is ahead of schedule, but also above plan. That means the initiatives we all put together and how we work as one group has bear fruit. And I think this will shape up well as a firm foundation to capture growth opportunities going ahead as well. We talk about growth pillars, but also fundamentally what is important is a running group approach. And this is an important enabler. Today, we work much more closer as one group. That means not just collaboration, but synergy. And synergy is both in business volumes, more customer, and also synergy in terms of cost savings as well. So this is important because it is as we have more customers and they bank with us on more products and more and more countries and more effectively because we also make digital a very important offering. So I think we are managed to work as one group together. We're well-placed for the future and because we still have a very strong partnership position and a business franchise. for 2025. We stick to our commitment to deliver to 60% of dividend payout ratio and we will complete the share buyback plans by end of 2026. That is still there. So we stay committed. So may I now head over to Tick Long to talk a bit more about the business and the business environment.