My first Publication ocbc_ar17_fullreport_english | Page 7

2017 YEAR IN REVIEW
Global economic and financial conditions turned out better
than expected in 2017. We began the year on a cautious note
with the global economy confronted with many uncertainties
arising from the threats of protectionism, the possibility of
slower growth in the major economies, the uncertain pace
of monetary tightening in the United States and heightened
geopolitical tensions in Asia. However, as the year progressed,
global growth gathered strength across the major developed
and emerging economies while inflation remained benign.
The threat of protectionism retreated, while political
posturing remained within safe boundaries. In short, stronger
growth and a gradual pace of monetary normalisation were
strong drivers for the pickup in risk-taking and consumer
confidence. Around the world, equity markets responded
with stellar performances.
Closer to home, GDP growth surprised on the upside for most
Asian countries. The economies of our key regional markets,
namely Greater China, Malaysia and Indonesia, all recorded
favourable performances. Singapore’s economy did well with
GDP growth at 3.6%, led by strong exports and output in the
manufacturing and services sectors.
Our strong results reaffirmed the soundness of OCBC’s long-term
corporate strategy and demonstrated the strength and resilience
of our diversified franchise and extensive capabilities that
we have built over 85 years. For the financial year ended 2017,
OCBC Group net profit after tax rose 19% to a new high of
S$4.15 billion, driven by our key pillars of banking, wealth
management and insurance. All delivered robust performances.
DIVIDENDS
The Board has recommended a final tax-exempt dividend of
19 cents per share, an increase from the previous year’s 18 cents
per share, bringing the total full-year 2017 dividend to 37 cents
per share, which was above the 36 cents per share of 2016. This
translated to a dividend payout ratio of 37% of our core earnings.
Our approach to dividends is one where dividend payments are
sustainable and predictable, and where we retain sufficient
capital for long-term growth and new market opportunities.
Net Profit
(S$ billion) Total Income
(S$ billion) Cost-to-Income Ratio Earnings per share
NET PROFIT
(S$ billion) TOTAL INCOME
(S$ billion) COST-TO-INCOME RATIO
(%) EARNINGS PER SHARE
(cents)
4.15
3.47
2016
19 %
2017
2016
CUSTOMER LOANS
Customer Loans
(S$ billion)
(S$ billion)
220
2016
237
2017
8.49
8 %
9.64
14 %
2017
2016
284
8 %
2017
2.7
41.9
percentage
Points
2016
CUSTOMER DEPOSITS
Customer Deposits
(S$ billion)
(S$ billion)
261
44.6
2017
2016
11.2
2017
1.2
12.4
13.1
percentage
Points
2016
2017
19 %
BASEL III FULLY
Basel
III Fully COMMON
Phased-in Common
PHASED-IN
Equity Tier 1 Capital Adequacy Ratio
EQUITY TIER 1 CAPITAL
ADEQUACY RATIO
(%)
RETURN ON EQUITY
Return on Equity
(%)
10.0
97.6
82.2
0.7
percentage
Points
2016
2017
Please refer to Management Discussion and Analysis on page 134.
BUILDING ON OUR CORPORATE STRATEGY FOR SUSTAINABLE GROWTH
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