Since OCBC acquired Wing Hang for $5 billion back in 2014, its earnings contribution from Greater China has tripled over the last five years. While OCBC’s operating profit stood at $476 million in 2013 before the Wing Hang acquisition, OCBC’s operating profit from its Greater China franchise has increased to $1.63 billion in 2018.
According to OCBC’s group chief executive officer Samuel Tsien, after the acquisition of Wing Hang, operating profit generated out of Greater China area has doubled from $831 million which is an increase of about 18 percent to 19 percent. While OCBC retained all of Wing Hang’s customers, OCBC Wing Hang has tapped into new customers and market segments such as healthcare and logistics.
Samuel Tsien told the media that, “China will continue to be a major economic force for this part of the world, so a lot of economic activities will be driven out of China to other parts of our franchise.”
While the region’s pre-tax profit contribution in 2013 was at 6 percent, it increased to 19 percent in 2018. By 2023, the contribution is expected to increase and range between 20 to 25 percent. The bank has set the target to hit S$1 billion in pre-tax profit from the Greater Bay area comprising Hong Kong, Macau, and several cities in Guangdong province by 2023.
OCBC Wing Hang’s profits also grew from $257 million in 2014 to $419 million by the end of 2018, which is a 1.6-fold increase since the acquisition.
The bank recently announced that its customers can now make card-less withdrawals by generating a QR code from its mobile banking app. The code can be scanned at any of its 655 Automatic Teller Machines.
According to reports, the Singapore-based bank is planning to place a bid for a controlling stake in Bank Permata, an Indonesian lender backed by Standard Chartered.