Overseas Chinese Banking Corporation (OCBC Bank)

[pencilin]

S'pore banks has a trick to minimize funding cost. The interest rate of 2% of only applicable for fresh funds.
After 1 year, the FD rate will be drastically drop to 0.6%, unless one has the time to keep bank-hopping and get good rates

Is it only a S'pore phenomenon? I feel it's like cheating depositors. Are USA banks allowed to do this?

But as a shareholder, I think it's brilliant to keep the cost of funding low.

[Bibi]

The big three banks in spore usually gave poorer fix deposit rates. Go for foreign cimb, maybank or hong leong. Hong Leong gave higher rates and yet no such nonsense as need to put in fresh funds to continue to enjoy the higher rates.

I hope with the introduction of the 5 new digi bank licenses by MAS, fix d rates will be better.

[pencilin]

Bibi thanks for the info... I think foreign banks like ICBC also pick up the bad habit... they cut the FD rate to 0.6% after 1 year
With inflation around 3%, those retirees will get leeched

I will try out Hong Leong.

[wonghw12]

Bibi thanks for the info... I think foreign banks like ICBC also pick up the bad habit... they cut the FD rate to 0.6% after 1 year
With inflation around 3%, those retirees will get leeched

I will try out Hong Leong.

Is inflation really 3%? 

Anyway, banks (in general) give decent dividend yield. Alternatively can buy their perpetuals, which pay more than FD or even 3%.

[pencilin]

wong, no more perpetuals. Almost all delisted
Bank don't need to pay 5% for fund, where they can get it at 0.6%

Inflation is around 3% on average. Just take note of the coffee shop prices, public transport fee hike, school fees, ERP...
I think media hype it down to under 1%, to justify the poor return on CPF OA account. Miserable 2.5%

[¯|_(ツ)_/¯]

8 May 2020 1Q20 Result for OCBC
https://links.sgx.com/FileOpen/OCBC_1Q20...eID=609791
(click for sgx announcement)

1. profit $698m vs $1.23b FY19 aka drop 43% to 7 year low
2. provisions for credit losses $657m vs $249m FY19 
3. buffer for "stresses expected against the recessionary market outlook" and factored in allowances for a local customer in oil trading sector

Stay home and Stay safe, valuebuddies.

[¯|_(ツ)_/¯]

18 May 2020 OCBC ppt tabled in 2020 AGM

(click for ppt)

Stay home and stay safe, everyone.

[¯|_(ツ)_/¯]

11 June 2020 Meeting minutes and ppt eAGM of OCBC
https://links.sgx.com/FileOpen/OCBC-Minu...eID=617527
"The macro-economic picture provided a backdrop to the Bank's responses in the face of many difficult challenges posed by unprecedented stoppage of economic activities.  The world was currently going through the deepest global recession since the last global depression of 1929 to 1932.  The COVID-19 pandemic had inflicted severe disruptions around the world and across all social and economic activities causing large scale dislocation to global supply chains, halting production, reducing demand and inflicting a huge loss in income."

Stay home and stay safe, valuebuddies.

[¯|_(ツ)_/¯]

26 June 2020 To announce 1H20 Result on Friday, 7 August 2020, before the trading market opens OCBC
https://links.sgx.com/1.0.0/corporate-an...5f346db6d5
as at 30 June 2020

Wear mask and keep your distance when going out, valuebuddies.

[¯|_(ツ)_/¯]

OCBC
Ms Helen Wong, to take over from Mr Samuel Tsien as Group CEO on 14 Apr 2021.

Ms Helen Wong joined OCBC Bank in February 2020 as Deputy President and Head of Global Wholesale Banking. 

Shortly after her arrival in OCBC Bank, Ms Wong took on the challenge of co-leading the Transform for Future taskforce to review and redefine the OCBC Group strategy and operating model. As sustainability is one of the key areas of focus of the Transform for Future taskforce, Ms Wong spearheaded a new Sustainability Taskforce to complement OCBC Group’s sustainability efforts.

On accepting her new role, Ms Wong said, “I am deeply honoured to be succeeding Sam, who is highly regarded and respected not just in Singapore’s banking industry but also regionally. I want to thank the Board for the confidence and opportunity to lead one of Asia’s leading financial institutions. In the past one year, with the Covid19 pandemic breaking out right after I joined OCBC, I have witnessed Sam’s sound judgment and worked hand-in-hand with many talented and like-minded individuals. Although Covid-19 struck fiercely at the economy and impacted many lives and livelihoods, we navigated the storm deftly thanks to Sam’s leadership, the team’s united efforts and the Board’s guidance. The team and I will now continue to build on OCBC’s strong foundations to further entrench it as a leading and progressive regional financial institution.

---

It's very clear that the industry is very excited that a lady took over as Group CEO for a local bank.  Helen's focus on Asia, in particular China would be an asset to OCBC.  With her, eyeballing on Sustainability, means that OCBC understand the challenges to stay competitive and let's hope for the best.

Stay home and stay safe, everyone.