My first Publication ocbc_ar17_fullreport_english | Page 147

PERFORMANCE BY BUSINESS SEGMENT (continued)
Global Consumer/Private Banking
Global Consumer/Private Banking provides a full range of products and services to individual customers. At Global Consumer Banking,
the products and services offered include deposit products (checking accounts, savings and fixed deposits), consumer loans (housing loans
and other personal loans), credit cards, wealth management products (unit trusts, bancassurance products and structured deposits)
and brokerage services. Private Banking caters to the specialised banking needs of high net worth individuals, offering wealth management
expertise, including investment advice and portfolio management services, estate and trust planning, and wealth structuring.
Global Consumer/Private Banking’s operating profit after allowances was S$1.23 billion in 2017, a year-on-year increase of 36%, driven
by higher net interest income and fee income, partly offset by an increase in expenses.
Global Corporate/Investment Banking
Global Corporate/Investment Banking serves institutional customers ranging from large corporates and the public sector to small and
medium enterprises. The products and services offered include long-term loans such as project financing, short-term credit such as
overdrafts and trade financing, deposit accounts and fee-based services such as cash management and custodian services. Investment
Banking offers a comprehensive range of financing solutions, syndicated loans and advisory services, corporate finance services for
initial public offerings, secondary fund-raising, takeovers and mergers, as well as customised and structured equity-linked financing.
Global Corporate/Investment Banking’s operating profit after allowances was down 7% year-on-year to S$1.42 billion in 2017, mainly
attributable to higher allowances. The increase in allowances was mainly attributable to specific allowances made for exposures to the
offshore support services and vessels sector.
Global Treasury and Markets
Global Treasury and Markets is responsible for the management of the Group’s asset and liability interest rate positions, engages in
foreign exchange activities, money market operations, fixed income and derivatives trading, and offers structured treasury products
and financial solutions to meet customers’ investment and hedging needs. Income from treasury products and services offered to
customers of other business segments, such as Global Consumer/Private Banking and Global Corporate/Investment Banking,
is reflected in the respective business segments.
Global Treasury’s operating profit rose 8% to S$482 million in 2017. The higher year-on-year operating profit was driven by higher net
interest income from money market activities, partly offset by a decline in net trading income.
OCBC Wing Hang
OCBC Wing Hang offers a comprehensive range of commercial banking and related financial services such as consumer financing, share
brokerage and insurance.
OCBC Wing Hang’s operating profit after allowances rose 2% to S$370 million in 2017, led by higher net interest income offset by lower
trading income.
Insurance
The Group’s insurance business, including its fund management activities, is undertaken by 87.9%-owned subsidiary Great Eastern
Holdings and its subsidiaries, which provide both life and general insurance products to its customers mainly in Singapore and Malaysia.
Operating profit after allowances from Great Eastern Holdings rose 91% year-on-year to S$1.26 billion in 2017. The year-on-year
increase was driven by robust underlying business growth and strong performance in its investment portfolio as a result of favourable
market conditions.
After tax and non-controlling interests, Great Eastern Holdings’ contribution to the Group’s net profit was S$968 million in 2017, higher
than S$470 million in 2016.
Others
Others comprise mainly property holding, investment holding and items not attributable to the business segments described above.
BUILDING ON OUR CORPORATE STRATEGY FOR SUSTAINABLE GROWTH
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