Presentation to Media and Analysts

2003 Final Results

11 February 2004

2

Agenda

• Results at a Glance

• Income Statement Trends

• Loans and Deposits

• Asset Quality and Provisions

• Conclusion

3

Results at a Glance : Full Year

FY2003 FY2002 YoY

S$m S$m +/(-)%

Net Interest Income 1,435 1,509 (5)

Non-interest income 758 712 6

- Fee Income 373 374 (0)

Total Income 2,193 2,222 (1)

Operating Expenses 855 849 1

Operating Profit 1,338 1,372 (2)

Goodwill 127 127 (0)

Provisions 225 501 (55)

Associates 235 161 46

Net Profit 954 667 43

4

Results at a Glance - Quarterly

4Q03 4Q02 YoY 3Q03 QoQ

S$m S$m +/(-)% S$m +/(-)%

Net Interest Income 369 376 (2) 359 3

Non-interest income 206 192 7 230 (11)

- Fee Income 103 91 13 100 4

Total Income 575 569 1 589 (3)

Operating Expenses 216 217 (0) 214 1

Operating Profit 358 352 2 375 (4)

Goodwill 32 32 (0) 32 (0)

Provisions 54 130 (58) 37 45

Associates 94 47 100 52 80

Net Profit 279 169 65 292 (5)

5

2003 /Full Year 2003 2002 2002

S$m S$m +/(-)%

Adjusted Operating Profit 1,211 1,372 (12)

Adjusted Net Profit 828 667 24

Results Adjusted for Non-CoreAsset Divestment

Note: Adjusted to exclude the following net gains from divestment of non-core assets: 3Q03 - F&N (S$72m) 4Q03 - Mount Emily property (S$36m), WBL Corp (S$4m), Raffles Hotel (S$14m under associates)

QuarterlyQuarterly 4Q03 4Q02 YoY 3Q03 QoQ

S$m S$m +/(-)% S$m +/(-)%

Adjusted Operating Profit 308 352 (12) 297 4

Adjusted Net Profit 224 169 33 220 2

6

2003 2002

Gross Dividend per Share (cents) 23* 20

Net Dividends (S$m) 231 201

Net Profit (S$m) 954 667

Less: Gain on non-core assets 126 0

Adjusted Net Profit (S$m) 828 667

Payout based on Adjusted Net Profit 28% 30%

Dividend Payout

* Excluding Special Dividend of 63.78 cents (49.75 cents net of tax) paid in July 2003

7

Agenda

• Results at a Glance

• Income Statement Trends

• Loans and Deposits

• Asset Quality and Provisions

• Conclusion

8

376352 356 359 369

1,3921,509

1,435

2001 2002 2003 4Q02 1Q03 2Q03 3Q03 4Q03

2.17%

2.02%1.90%

1.99%1.90% 1.89% 1.88%

1.94%

Net interest margin

Positive Quarterly Trends in Net InterestIncome & Margins

Net interestincome(S$m)

9

153 156

5078

630562

128260

192

148174

230206

758822

712

2001* 2002 2003 4Q02 1Q03 2Q03 3Q03 4Q03

32.1%33.8%

29.6%32.9%

39.1%35.8%34.6%37.1%

30.5%29.8% 29.7%

Non-interest income/Total income

Non-interestincome(S$m)

Non-Interest Income Buoyed byNon-Core Asset Divestment

Gains from divestment of non-core assets Excluding divestment gains

* 2001 income was boosted by S$260m gain from disposal of OUB shares

10

16.1% 16.5% 16.5% 16.9%18.0%

17.0%16.8%

13.2%

19.5% 19.7%

18.1%

9182 88

100 103292

374 373

2001 2002 2003 4Q02 1Q03 2Q03 3Q03 4Q03

Fee income/Total income

Fee income(S$m)

Steady Rise in Fee Income Contribution

Excluding gains from divestment of non-core assets

11

Wealth Management Sales by Product

612

1,162992

826

1,221 1,212

2,478

3,856

5,210

1,473

1,040

3,006

2001* 2002 2003

(S$m)

Bancassurance Unit Trusts Treasury & structured products Total

* 2001 figure for treasury & structured products is estimated

12

37.6%36.4%

42.1%40.3%

38.1%39.0%38.2%39.1%

41.9% 41.2%41.4%

0

113 119 119 121 119

51 5172 52 50

52 3633

41 47

476 465 478

194 192225

164 157178

867 849 855

217201

223 214 216

2001 2002 2003 4Q02 1Q03 2Q03 3Q03 4Q03

Operatingexpenses

(S$m)

Cost-to-Income Ratio

Staff Cost Premises & Equipment Others Restructuring Expenses

Excluding gains from divestment of non-core assets

Operating Expenses Stable

13

Operating Profit beforeProvisions and Goodwill

308297

5078

1,0871,211

260128

352

298 307

375 358

1,347 1,372 1,338

2001* 2002 2003 4Q02 1Q03 2Q03 3Q03 4Q03

Gains from divestment of non-core assets

* 2001 operating profit includes S$260m gain from disposal of OUB shares

(S$m)

14

055 70

4730

47

7424

22

(31)

448365

194

163

57

68

(27) (26)

225

518 501

64

5470

130

37

2001 2002 2003 4Q02 1Q03 2Q03 3Q03 4Q03

Specific Provisions for Loans

Provisions for Diminution inInvestments and Other Assets

General Provisions

Substantial Reduction in Provisions

(S$m)

15

224220

5472

526

828

252

126

169 159

224

292 279

778

667

954

2001* 2002 2003 4Q02 1Q03 2Q03 3Q03 4Q03

Net Profit Excluding Non-CoreDivestment Gains Remained Healthy

Gains from divestment of non-core assets

* 2001 net profit includes S$252m net gain from disposal of OUB shares

(S$m)

16

EPS and ROE

EPS¢

41

62 68 64

19

2216

10

9.3% 10.0%

7.3% 6.8%

9.4%

12.2% 11.8%

9.1% 9.5%

7.4%

8.7%

9081

67

5052

72

5260

2001 2002 2003 4Q02 1Q03 2Q03 3Q03 4Q03

ROE

Gains from divestment of non-core assets Excluding divestment gains

Note: Quarterly ROE and EPS are annualised; ROE refers to return on ordinary shareholders’ funds

17

Agenda

• Results at a Glance

• Income Statement Trends

• Loans and Deposits

• Asset Quality and Provisions

• Conclusion

18

36.1 35.8 37.1 37.3 38.2

6.8 6.7 6.6 6.3 6.4

7.87.0 7.1 7.5 8.0

49.9 49.7 51.2 51.4 52.6

Dec-02 Mar-03 Jun-03 Sep-03 Dec-03

Singapore Malaysia International

Loan Growth Driven by Consumer Loans

Loans(S$bn)

19

Malaysia OCBC Industry % %

Malaysia Loans 10.7 5.3

Market Share Gains inSingapore and Malaysia

SingaporeSingapore OCBC Industry

% %

DBU loans* 7.3 3.4

Loan Growth, Dec 03 / Dec 02

Source: OCBC, MAS, Bank Negara Malaysia

* Domestic Banking Unit loans, with Dec 02 base adjusted for the integration of finance companies during 2003.

20

11,17412,313

15,38221.1%

24.7%

29.2%

Dec-01 Dec-02 Dec-03

Share of Group Loans

Housing Loans(S$m)

Strong Expansion in Housing Loans

21

Share of Consumer Loans hasIncreased Significantly

Generalcommerce

7%

Professionals& private

individuals14%

Manufacturing7%

Housing Loans21%

Others11%

Transport,storage &

comm5%

Building andconstruction

17%

Financial institutions18%

Generalcommerce

6% Professionals &private individuals

15%

Manufacturing6%

Housing loans29%

Others10%

Transport,storage &

comm3%

Building andconstruction

14%

Financial institutions17%

December 2001 December 2003

Total Loans: S$52.8bn Total Loans: S$52.6bn

Consumer

Loans

35%

ConsumerLoans

45%

Loans by Sector Loans by Sector

22

36.2 36.9 35.9 34.4 34.3

10.8 11.1 11.3 11.2 11.1

87.8% 85.3%89.1%

93.8%90.9%

53.9 55.3 54.8 53.9 53.5

Dec-02 Mar-03 Jun-03 Sep-03 Dec-03

Loans-to-deposits

Fixed Deposits Savings Deposits Current Account Others

(S$bn)

Deposits and Loans-Deposits Ratio

Deposits

23

Agenda

• Results at a Glance

• Income Statement Trends

• Loans and Deposits

• Asset Quality and Provisions

• Conclusion

24

2,646 2,559 2,480 2,388 2,389

1,199 1,250 1,219 1,105 1,068

8.1% 8.0%7.5%

6.9%7.1%

4,356 4,290 4,1153,890 3,834

Dec-02 Mar-03 Jun-03 Sep-03 Dec-03

NPL Ratio

Singapore Malaysia International

Steady Improvement in Asset Quality

NPLs(S$m)

25

NPL Ratio Reduced by Half in Three Years

4,335 4,5504,092 3,921

5,183 4,9794,356 4,115

3,834

13.3%14.2%

11.5%10.7%

9.7% 9.6%

8.1%7.5%

6.9%

Dec-99 Jun-00 Dec-00 Jun-01 Dec-01* Jun-02 Dec-02 Jun-03 Dec-03

* Increase in absolute NPLs was due to acquisition of of Keppel Capital Holdings

NPLs

(S$m)

NPL Ratio

26

Cumulative Provisions

1,506 1,513 1,419 1,391 1,385

1,211 1,1831,184 1,183 1,183

2,717 2,6952,603 2,574 2,568

Dec-02 Mar-03 Jun-03 Sep-03 Dec-03

(S$m)

General Provisions Specific Provisions

27

Provision Coverage Remains Prudent

35% 35% 35% 36% 36%

62% 63% 63% 66% 67%

100%105% 103% 105%

100%

Dec-02 Mar-03 Jun-03 Sep-03 Dec-03

SPs / NPLs

(SPs+GPs) / NPLs

SPs / Unsecured NPLs

28

Conclusion

• Strong earnings growth driven by lower provisions,divestment gains and higher associates’ contribution

• Net interest income and fee income improved in second half

• Net interest margin largely stable over last four quarters

• Gained market share in loans in Singapore and Malaysia

• Substantial improvement in asset quality and provisions

• Steady progress in non-core asset divestment andcapital restructuring

• Group is well positioned to capitalise on growth opportunitiesin 2004