OCBC, Singapore’s second-largest lender and Southeast Asia’s second-largest bank by assets, has announced its ambitious plan to achieve an additional revenue of S$3 billion ($2.22 billion) by 2025. This announcement comes after the bank reported a record-breaking first-quarter profit in May. The increased revenue expectation is linked to the bank’s strategic move to unify its brand presence across core markets in China and Southeast Asia, aiming to capitalize on the region’s growth potential.
Helen Wong, OCBC’s group CEO, expressed optimism about the bank’s prospects, citing factors such as China’s post-pandemic economic recovery, the rise of ASEAN for the China plus one strategy, and other geopolitical developments as key drivers of growth. Singaporean banks, including OCBC, have been benefiting from a surge in deposits as investors seek safe havens amidst global banking turmoil and uncertainties surrounding the world economy and geopolitics.
To support its growth strategy, OCBC will invest over S$50 million in building up its transaction banking capabilities in greater China over the next three years. The bank aims to secure more than 500 regional mandates for cash management within the next five years. Furthermore, OCBC plans to double its investment banking revenue within three years and will increase the number of corporate and commercial bankers by 30%, reaching around 400 by 2024, with some hires focusing on the greater China market.
In line with its expansion goals, OCBC targets to double its assets under management for greater China by 2025 in its wealth management business. Jason Moo, the CEO of OCBC’s private banking unit, Bank of Singapore, revealed plans to grow their team of relationship managers to more than 500 by 2025 from the current 400. Additionally, OCBC aims to increase its greater China related revenue in Southeast Asia by more than 50% by 2025.
The bank’s private banking unit, Bank of Singapore, seeks to boost its assets under management by over 16%, reaching $145 billion by the end of 2025. With a comprehensive strategy in place, OCBC is well-positioned to capitalize on the region’s growth opportunities and enhance its presence and services for Chinese clients in Southeast Asia.
Pan Finance is a print journal and news website providing worldwide intelligence on finance, economics and global commerce. Known for our in-depth analysis and opinion pieces from esteemed academics and celebrated professionals; our readership consists of senior decision makers from across the globe.