FY 2025 Full-Year Financial Results Briefing

Good morning, everyone. We're going to start soon. Okay, good morning. Welcome to OCBC's full year, 2025, fourth quarter 2025 results briefing. On our panel this morning, we have our Group CEO, Mr. Tan Tae Long, our CFO, Ms. Goh Ching-ee, and as well as our colleagues from our whole of wealth, which our CEO will be talking about, which is Mr. Sunny Quack, Head of Consumer Financial Services, CEO of Bank of Singapore, Mr Jason Moo. And we have today with us the CEO of Great Eastern, and that is Mr Greg Kingston. And last but not least, our head of global markets, Mr Kenneth Lyne. So Chiny, our CFO will take us through our presentation slides and thereafter we will take Q&A. Chiny, please. Good morning, everyone. Thank you for joining us in our FY2025 results briefing. OCBC's profit before tax for a full year of 25 rose 2% year-on-year to a record $9.12 billion Singapore dollars.

This was the first time our pre-tax profit crossed the $9 billion mark. FY25 GroupNet profit of 7.42 billion was 2% below our record 7.59 billion a year ago due to higher tax expense. The rise in tax expense was mainly because of the increased profit contribution from higher tax jurisdictions and implementation of the 15% minimum global tax from the start of 2025. Our record pre-tax profit was driven by three key factors. Firstly, record total income. Secondly, well-managed expenses. And thirdly, lower allowances. interest income fell 6% to $9.15 billion in the declining interest rate environment.

Noninterest income grew 16% to a new high of $5.46 billion from broad-based growth. This more than compensated for the decline in NII. and trading income both rose to record levels up 22% and 10% respectively. In particular, our wealth management fees and customer flow treasury income also hit new highs, driven by increased client activities and franchise strength. Insurance income also delivered a strong 17% percent increase. Operating expenses were well managed, up 2%. Cost to income ratio was largely maintained at 40%. Our disciplined risk management kept NPL ratio stable at 0.9%

percent across the past seven quarters. Credit calls were lower at 17 basis points. On capital, CET1 ratio was 16.9 percent on transitional basis and 15.1 percent on fully face-in basis. With our resilient financial results and sound capital position, We are pleased to announce a final ordinary dividend of 42 cents and a special dividend of 16 cents for FY25. Together with our interim dividend of 41 cents, the total dividend for FY25 will amount to 99 cents. This represents a 60% dividend payout ratio. On our fourth quarter performance, group net profit was 3% higher than a year ago, driven

by 6% growth in income and 4% lower allowances. Against the previous quarter, net profit was 12% lower, mainly due to income seasonality and higher allowances. Moving on to our performance by three key business pillars on slide 5. Wealth management and insurance delivered strong results which more than compensated for the lower profit from banking. Wealth management income and AUM both rose to new highs. Wealth management income was 14% higher at 5.6 billion. It now contributes to 38% of group total income up from 34% a year ago. Banking AUM expanded 15% to 343 billion, driven by both net new money

inflows as well as positive market valuation. Net new money inflows in the fourth quarter was $6 billion. For the full year, our net new money inflows total $27 billion, up by close to 30% from a year ago. On insurance, profit contribution from Great Eastern rose 28% to $1.13 billion, driven by stronger insurance and investment performance. New Business Embedded Value or MBAF grew 19% and MBAF margin improved to 48.2% at Great Eastern continued to shift towards higher margin products. Banking profit before tax was 2% lower at 7.65 billion, mainly due to

to lower net interest income, partly mitigated by double digit growth in non-interest income. I'll move on to details of our group performance trends, starting on slide 8. FY25, NII declined to 9.15 billion, impacted by sharp declines in key benchmark rates, in particular, SORA and Highbok. This was mitigated by an 8% growth in our average assets and the benefits from our cash flow hedges. The asset growth was driven by loans up 7% year-on-year and on constant currency basis up 9%. Our deposits also grow strongly up 10% year-on-year. assessed liquidity was deployed to high quality assesses. For the fourth quarter, NII was 6%

lower year on year and 3% up Q&Q. Our Q&Q rise in NII was driven by a 2% asset growth, lower funding costs and continued deployment of excess liquidity to high-quality assets. NII sensitivity based on one basis point drop in rates across our four major currencies of Singapore dollars, relation ring gate, Hong Kong dollars and US dollars was about 6 billion on an annualized basis. for FY25 was 1.91%. Our exit name for December was 1.84%. We will continue to lower our costs of deposits to manage funding costs, deploy liquidity to income-equitative assets, to grow

income and capture hedging opportunities to mitigate loan new compression.

Moving on to non-interest income. Our full year, non-interest income rose 16% to a record $5.46 billion, driven by broad-based growth across fee, trading and insurance income. For the quarter, Non-interest income grossed 37% year on year, but was 16% lower Q1Q as wealth management and customer flow treasury income were impacted by seasonality in the fourth quarter. Four years, 2035, fee income grew 22% to a record $2.41 billion, lifted by growth across all major fee businesses in particular wealth management. Our wealth management fees surged 33% to a new high of 1.23 billion and contributed to more than half

of our group fee income. The strong performance was driven by two factors. First, improve client sentiment and higher average percentage of invested AUM across all wealth segments. Our invested AUM is now above 60%. Second, our strategic drive to strengthen our wealth franchise, including increasing RMs and use of digitalization. are starting to deliver improved revenues and productivity. On trading income, our trading income grew 10% to 1.68 billion as customer flow treasury income rose 20% to a new high of 1.33 billion.

The growth was driven by both wealth and corporate segments with continued demand for FX hedging and investments products. Next on operating expenses. FY25 expenses increased by a modest 2%, mainly from higher staff and technology costs to support our business growth and raise productivity. Cost to income ratio was maintained at around 40%. We continue to invest strategically for growth while executing strong discipline in our discretionary expenses. Loan growth momentum was sustained. On constant currency terms, loans grew 9% each year and 4% Q&Q to $341 billion.

growth for the year was contributed by both corporate and consumer segments. By industry, the increase was broad-based, in line with our group strategy to capture opportunities in various growth sectors. This includes sustainable financing, TMT, including digital infrastructure, transport, as well as our Singapore residential mortgages. In particular, sustainable financing loans grew 13% year-on-year to $56.5 billion and now accounts for 17% of our total group loans. Our loan bulk remains well-diversified across geographies and sectors. Overall loan portfolio quality remains sound. NPL ratio was stable at 0.9% for 7 consecutive quarters since June 2024.