My first Publication ocbc_ar17_fullreport_english | Page 141

OPERATING EXPENSES
2017
S$ million 2016
S$ million +/(-)
%
2,236
55
180
2,471 2,128
51
168
2,347 5
8
7
5
315
121
99
258
793 308
117
100
238
763 2
3
(2)
9
4
770
4,034 678
3,788 14
6
Group staff strength
Period end
Average 29,174
29,401 29,792
30,037 (2)
(2)
Cost-to-income ratio 41.9% 44.6%
Staff costs
Salaries and other costs
Share-based expenses
Contribution to defined contribution plans
Property and equipment
Depreciation
Maintenance and hire of property, plant & equipment
Rental expenses
Others
Other operating expenses
Total operating expenses
Operating expenses grew 6% to S$4.03 billion in 2017, an increase from S$3.79 billion a year ago, largely from higher staff costs and
a rise in expenses associated with the growth in business volumes. This included the full year cost impact from the consolidation of
the former wealth and investment management business of Barclays PLC in Singapore and Hong Kong acquired in November 2016.
The cost-to-income ratio was lower at 41.9% in 2017, an improvement as compared to 44.6% a year ago.
ALLOWANCES FOR LOANS AND OTHER ASSETS
2017
S$ million 2016
S$ million +/(-)
%
486
297
84
540
1,407 208
72
47
157
484 133
312
82
243
191
(786) 172 (558)
Allowances and impairment charges for other assets 50 70 (28)
Allowances for loans and impairment for other assets 671 726 (7)
Specific allowances for loans
Singapore
Malaysia
Greater China
Others
(Write-back)/portfolio allowances for loans
Allowances for loans and other assets were S$671 million in 2017, lower as compared to S$726 million a year ago.
Specific allowances for loans, net of recoveries and write-backs were S$1.41 billion for the year, higher as compared to S$484 million in
2016. The increase was mainly attributable to allowances made for exposures to the offshore support services and vessels sector which
continued to be under stress. In the fourth quarter of 2017, the Group applied S$887 million of cumulative portfolio allowances to cater
for additional specific allowances. The Group continued to maintain portfolio allowances at the prudent level of S$1.42 billion, which
were sufficient to meet existing regulatory obligations.
BUILDING ON OUR CORPORATE STRATEGY FOR SUSTAINABLE GROWTH
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