OCBC Bank

Oversea-Chinese Banking Corporation Limited
Singapore's longest established local bank
The OCBC Centre, located on the southern bank of the Singapore River houses the corporate headquarters of OCBC Bank.
Native name	华侨银行
Type	Public company
Traded as	SGX: O39
Industry	Financial services
Founded	1932 (1932)
Headquarters	OCBC Centre, Singapore
Area served	East Asia South East Asia
Key people	Ooi Sang Kuang, chairman^[1] Samuel Tsien, CEO
Products	Consumer banking corporate banking investment banking global wealth management asset management insurance
Operating income	S$8,489 million (FY2016)
Net income	S$3,473 million (FY2016)
Total assets	US$ 283.7 billion (FY2016)
Total equity	S$37.7 billion
Website	www.ocbc.com

Oversea-Chinese Banking Corporation Limited (SGX: O39) (Simplified Chinese: 华侨银行有限公司), abbreviated as OCBC Bank (华侨银行), is a publicly listed financial services organisation with its head office in Singapore. Although publicly listed, OCBC Bank's largest shareholder is the Lee Group of Companies. OCBC was founded by Lee Kong Chian in 1932, and his son Lee Seng Wee also served as chairman. OCBC Bank has assets of more than 224 billion SGD. Based on Bloomberg, in 2011 OCBC is the number one of the world's strongest $100 billion assets banks.^[2] It is Singapore's oldest local bank.^[3]

The "Oversea-Chinese" usage leads many to believe mistakenly that the bank's name is misspelled, but this is the correct traditional spelling. The bank's global network has grown to comprise subsidiaries, branches, and representative offices in 18 countries and territories. It has retail banking subsidiaries in Malaysia, Indonesia, Hong Kong, and China, and branches in China, Hong Kong, Japan, Australia, the UK and US. OCBC's Indonesia subsidiary, Bank OCBC NISP, has 630 branches and offices.^[4]

History

Former OCBC Bank in South Bridge Road, Singapore.

In 1932, three banks – Chinese Commercial Bank (1912), Ho Hong Bank (1917), and Oversea-Chinese Bank (1919), merged to form Oversea-Chinese Banking Corporation under the leadership of Tan Ean Kiam and Lee Kong Chian. In the subsequent decades, the bank expanded its operations and became the largest bank in South East Asia.^[5]

In 1942 during World War II, all the local banks in Singapore closed briefly during the early days of the Japanese Occupation. By April 1942 most banks, including OCBC, had resumed normal operations. In Indonesia, the Japanese occupation authorities closed OCBC's branches in Sumatra. During the war, the bank moved its head office to Bombay, India and only re-registered back in Singapore after the war ended.^[6] OCBC's branch in Xiamen survived the war and in the 1950s, OCBC was one of only four foreign banks to have branches in China.^[7]

After the war, OCBC re-established its branches in Djambi, Jakarta, and Surabaya. However, in 1963 conflict between Indonesia and Malaya (which then included Singapore), resulted in the closure of OCBC's branches there. That same year the revolutionary government in Burma nationalised OCBC's two branches there, which became People's Bank No. 14.^[8]

The bank was criticised for not expanding fast enough to meet the needs of the post-war Chinese business community, especially in the smaller towns of Malaya. One of the critics was Tan Khoo Teck Puat, who subsequent resigned to set up Malayan Banking. By 1970, OCBC's total assets exceeded 1 billion SGD, making OCBC the largest financial institution with the biggest deposit base in Singapore.

In 1972, OCBC acquired Four Seas Communications Bank, the oldest surviving bank in Singapore. The bank had been founded in 1906 as the Sze Hai Tong Bank and its founders had targeted the Teochew community.

On 9 May 1989, OCBC took on a new corporate identity by changing its logo and its name to OCBC Bank. ^[5]

The bank had branches in Hong Kong and in Bangkok, where it had become the first Chinese bank there when it opened its branch in 1909.

The next major acquisition occurred in 2001, when OCBC Bank acquired Keppel Capital Holdings and all its subsidiaries, including Keppel TatLee Bank, Keppel Securities, and Keppel TatLee Finance. The next year OCBC operationally and legally integrated Keppel TatLee Bank. In 2003 OCBC merged OCBC Finance into OCBC Bank.

The official opening of e2 Power's Cyberjaya Office occurred in 2004. The same year saw the unofficial opening of OCBC Bank's new corporate HQ in Kuala Lumpur, and announced merger of asset management operations of OAM with Straits Lion Asset Management. OCBC opened an off-shore branch in Brunei.

2007: Commencement of business of OCBC China Bank.
2008: Acquired 67% shareholding in PacificMas Berhad.

Shareholders

The ten largest shareholders as of 7 March 2017^[9] are:

	Name of Shareholders	No. of Shareholdings	%*
1.	Citibank Nominees Singapore Pte Ltd	728,352,743	17.41
2.	Selat (Pte) Ltd	462,024,552	11.04
3.	DBS Nominees (Private) Limited	388,772,721	9.29
4.	HSBC (Singapore) Nominees Pte Ltd	193,856,083	4.63
5.	Lee Foundation	181,690,897	4.34
6.	DBSN Services Pte Ltd	157,603,643	3.77
7.	Singapore Investments Pte Ltd	157,007,526	3.75
8.	Lee Rubber Company (Pte) Limited	129,850,352	3.10
9.	United Overseas Bank Nominees (Private) Ltd	72,834,310	1.74
10	BNP Paribas Securities Services Singapore	72,201,487	1.73

* Percentage is calculated based on the total number of issued ordinary shares, excluding treasury shares.

Subsidiaries

Main branch of OCBC

OCBC Bank Tampines Centre, located in Tampines Central, Singapore

OCBC Bank at Beach Street in George Town, Penang, Malaysia

OCBC Bank Malaysia branch head office in Kuala Lumpur.

OCBC Bank in Ipoh, Malaysia.

OCBC Wing Hang Bank Queen's Road Central Branch in Hong Kong.

OCBC Securities

OCBC Securities Private Limited is a wholly owned subsidiary of OCBC Bank, and is a member of the Singapore Exchange Securities Trading Limited (SGX-ST) and the Singapore Exchange Derivatives Trading Limited (SGX-DT). OCBC Securities was established in 1986, and is one of the leading securities and futures brokerage firms in Singapore providing full brokerage services for securities, derivatives and leveraged foreign exchange trading. They provide a robust electronic platform for clients to execute trades both locally and globally in listed products, futures and foreign exchange contracts in the most efficient way using technology and their extensive network of connectivity.

Great Eastern Holdings

In 2004, OCBC acquired Great Eastern Holdings (GEH) following a voluntary cash offer. GEH had $53.1 billion in assets and 3.8 million policyholders as at 30 September 2010. GEH operates two distribution channels – the tied agency force and bancassurance. The company also operates in China, Malaysia, Indonesia and Brunei.

Lion Global Investors (LGI)

OCBC launched LGI in September 2005 following the merger of the asset management arms of OCBC Bank and Great Eastern Holdings. Lion Global Investors had total assets under management of about S$29.4 billion as at 30 September 2010.^[10]

Bank of Singapore

Bank of Singapore, (formerly ING Asia Private Bank), is a wholly owned private banking subsidiary of OCBC Bank. With a branch in Hong Kong and offices in Manila and Dubai, Bank of Singapore serves high-net-worth individuals and wealthy families of China, Europe, Hong Kong, Indonesia, Japan, Korea, Malaysia, the Middle East, the Philippines, Singapore, Taiwan, and Thailand, as well as global Non-Resident Indians. OCBC acquired ING Asia Private Bank on 29 January 2010 and renamed it Bank of Singapore.

Singapore Island Bank

Singapore Island Bank Limited is a full-licensed bank and a wholly owned subsidiary of OCBC Bank. Singapore Island Bank has S$100 million in capital, and is governed under the Banking Laws and Regulation in Singapore. It houses finatiQ, which operates as an Internet bank.

Singapore Island Bank was formerly known as Bank of Singapore, and OCBC acquired it in 2000. On 29 January 2010, OCBC Bank completed its acquisition of ING Asia Private Bank and renamed it Bank of Singapore. OCBC renamed the bank that housed finatiQ, Singapore Island Bank to differentiate these two separate businesses to avoid confusion.

Bank OCBC NISP

In 2004, OCBC Bank acquired a 22.5% stake in PT Bank NISP Tbk ("Bank NISP"), its joint-venture partner in PT OCBC Indonesia since 1996. With the completion of this transaction, Bank NISP became an associate company of OCBC Bank. Bank NISP was ranked the 11th largest Indonesian bank by assets and had a network of 135 branches and offices and, over 3,000 shared ATMs.

In the same year, OCBC Bank purchased an additional 28.5% stake in Bank NISP, raising its shareholding in Bank NISP to 51%. OCBC Bank subsequently raised its stake to 70.62% in 2005. By 2008, it had increased its stake in Bank NISP to 74.73%. In 2008, Bank NISP changed its name to Bank OCBC NISP.

As of 30 September 2010, Bank OCBC NISP had 5,995 employees, total assets of Rp 40.2 trillion, and served customers through a network of 411 offices in 62 cities and 576 ATMs throughout Indonesia. Its customers could also use more than 37,500 ATMs (including ATMs belonging to ATM Bersama, Bank Central Asia, OCBC Bank in Singapore, and BankCard in Malaysia). Subsequently, in November 2010, OCBC Indonesia merged with OCBC NISP.^[11]

Ningbo Commercial Bank

In 2006 the bank acquired a 12.2% stake in China's Ningbo Commercial Bank.

OCBC Al-Amin Bank Berhad

OCBC wholly owns OCBC Al-Amin Bank, which offers Islamic banking products and services in Malaysia. OCBC had offered Islamic banking products and services since 1995. Finally, on 1 December 2008 OCBC launched OCBC Al-Amin Bank Berhad. OCBC Al-Amin offers products and services based on the applicable Shariah contract and with the endorsement of the Shariah Advisory Committee.

OCBC Bank (China)

OCBC China has 17 branches on the mainland and in Hong Kong. OCBC's presence in China dates back to 1925 when it opened a branch in Xiamen. In 2007 OCBC established its wholly owned subsidiary with headquarters in Shanghai.

OCBC Wing Hang Bank

In March 2014, OCBC Bank offered to pay nearly US$5 Billion for Wing Hang Bank, one of Hong Kong's last family-owned banks.^[12] Wing Hang is the eighth-largest lender in Hong Kong. It has 42 branches in Hong Kong, 15 on the mainland, and 13 in Macau. Under the Hong Kong Companies Ordinance, OCBC Bank, with 97.52 percent of Wing Hang's shares, compulsorily acquired Wing Hang on 29 July 2014.

On 1 October 2014, Wing Hang Bank was rebranded as OCBC Wing Hang Bank to reflect its integration into the OCBC family.^[13]

Select Securities Limited (Hong Kong)

In November 1960, OCBC established an investment holding company named as Select Securities Limited. The company is based in Hong Kong. Select Securities Limited operates as a subsidiary of Oversea-Chinese Banking Corp. Ltd.

Citations and references

Citations

↑ "Dr Cheong Choong Kong to retire as Chairman of OCBC". The Edge Singapore. Retrieved 31 October 2014.
↑ "Canadians Dominate World's 10 Strongest Banks". Retrieved 3 May 2012.
↑ http://www.straitstimes.com/business/ocbc-is-nations-oldest-local-bank
↑ "OCBC is nation's oldest local bank". The Straits Times. 11 August 2015. Retrieved 15 November 2015.
1 2 http://eresources.nlb.gov.sg/history/events/60688ba6-4e53-4945-9e48-9759eb4e01f0
↑ Straits Times, 31 Oct 1972, p. 4. October 31, 1972. Retrieved 15 November 2015
↑ "China eases rules for foreign banks". The Straits Times, p. 3. 24 December 1984. Retrieved 15 November 2015.
↑ Turnell (2009), p.226.
↑ OCBC Shareholder Information - Major Shareholders
↑ "TA Investment Declares Unit Split for TA South East Asia Equity Fund" (PDF). TA Enterprise. 21 December 2010. Retrieved 18 August 2014.
↑ "OCBC NISP, OCBC Indonesia merger approved". The Jakarta Post. 10 November 2010. Retrieved 15 November 2015.
↑ "Singapore's OCBC offers $4.95 billion for Wing Hang Bank in bet on China growth". Retrieved 1 April 2014.
↑ "OCBC Announce". OCBC. Retrieved 6 September 2014.

References

Turnell, Sean (2009) Fiery Dragons: Banks, Moneylenders and Microfinnance in Burma. (NAIS Press). ISBN 9788776940409

External links

Banking in Singapore

Local banks

Foreign banks

Qualifying full banks	ANZ Bank of China BNP Paribas Citibank Singapore HSBC Bank ICICI Bank Industrial and Commercial Bank of China Maybank Standard Chartered State Bank of India
Full banks	Bangkok Bank Bank Negara Indonesia Bank of America Bank of East Asia Bank of India The Bank of Tokyo-Mitsubishi UFJ CIMB Bank Citibank N.A. Crédit Agricole Corporate and Investment Bank Hong Leong Bank Indian Bank Indian Overseas Bank JPMorgan Chase Mizuho Corporate Bank RHB Bank Sumitomo Mitsui Banking Corporation UCO Bank
Wholesale banks	ABN AMRO Agricultural Bank of China Banco Bilbao Vizcaya Argentaria Banco Santander Bank Julius Baer Morgan Stanley Bank of Communications Bank of Nova Scotia Barclays Bank BNP Paribas Wealth Management China CITIC Bank China Construction Bank Chinatrust Commercial Bank Commerzbank Commonwealth Bank of Australia Crédit Industriel et Commercial Credit Suisse Deutsche Bank DnB NORD Bank DZ Bank AG Singapore Branch Emirates NBD First Commercial Bank First Gulf Bank Habib Bank HSBC Private Bank (Suisse) ING Bank KBC Bank Korea Exchange Bank Landesbank Baden-Württemberg Macquarie Bank Mega International Commercial Bank National Australia Bank National Bank of Kuwait Natixis Norddeutsche Landesbank Northern Trust Portigon Qatar National Bank Rabobank The Royal Bank of Scotland Société Générale Société Générale Bank & Trust State Street Bank and Trust Company UBS UniCredit VTB Capital Wells Fargo Bank Westpac
Offshore banks	Arab Bank Bank Hapoalim Bank of Baroda Bank Mandiri The Bank of New York Mellon Bank of Taiwan Bank Sarasin & CIE Canadian Imperial Bank of Commerce Chang Hwa Commercial Bank Clearstream Banking S.A. Crédit Agricole Hana Bank Hang Seng Bank HSH Nordbank Hua Nan Commercial Bank Korea Development Bank Krung Thai Bank Land Bank of Taiwan Lloyds Bank Mitsubishi UFJ Trust and Banking Corporation Nordea Bank Finland Norinchukin Bank Philippine National Bank Raiffeisen Bank International Royal Bank of Canada Shinhan Bank Siam Commercial Bank Skandinaviska Enskilda Banken Standard Bank Sumitomo Mitsui Trust Bank Svenska Handelsbanken Toronto-Dominion Bank Union de Banques Arabes et Francaises Woori Bank

Interbank networks
and payment systems

¹ Subsidiary of OCBC Bank.
² Operates under UOB's brand name.
³ Subsidiary of DBS Bank.

S&P Asia 50 companies

FTSE STI companies of Singapore

As of 21 September 2015:

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