Oversea-Chinese Banking Corporation
|Traded as||SGX: O39|
|Area served||South East Asia|
|Key people||Cheong Choong Kong, Chairman
Samuel Tsien, CEO
Ching Wei Hong, Chief Operating Officer
Heng Sou Sun, Acting Chief Technology Officer
Global wealth management
|Operating income||S$4,815 million (FY2009)|
|Net income||S$1,962 million (FY2009)|
|Total assets||S$224 billion (Sept 2010)|
|Total equity||S$20 billion|
|Subsidiaries||Refer to Subsidiaries|
The Oversea-Chinese Banking Corporation Limited (SGX: O39, OTC Pink: OVCHY) (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. OCBC Bank has assets of more than 224 billion SGD. As of November 2010, the bank is the largest local bank in Singapore by market capitalisation. However, it is the smallest local bank in Singapore by global presence. Based on Bloomberg, in 2011 OCBC is the number one of World's 10 strongest $100 billion assets banks.
The bank's global network has grown to comprise more than 530 branches with representative offices in 15 countries and territories, including Singapore, Malaysia, Indonesia and a few small branches in China, Hong Kong SAR, Japan, Australia, UK and USA. The branches include the 411 branches and offices in Indonesia operated by its subsidiary, Bank OCBC NISP.
- 1 History
- 2 Subsidiaries
- 3 Recognition
- 4 Citations and references
- 5 External links
Oversea-Chinese Bank (OCB) was founded in 1919. The bank's name is often mistakenly thought to be incorrectly spelled, but is in fact a predominantly British usage of the word more commonly spelled as "overseas". OCB opened branches abroad in Hong Kong (1923), Xiamen (1925), and Rangoon (1927).
The combined entity prospered under the management of local business and community leaders, notably Dato Lee Kong Chian (1938–1964), Tan Sri Tan Chin Tuan (1966–1983) and Mr Lee Choon Seng (acting Chairman during the Occupation), eventually becoming one of the largest banks in Singapore and Malaysia.
In 1942 all the local banks in Singapore closed briefly during the early days of the Japanese Occupation. By April 1942 most, including OCBC, had reopened. In Indonesia, the Japanese occupation authorities closed OCBC's branches in Sumatra. OCBC's branch in Xiamen survived the war in the 1950s OCBC was one of only four foreign banks to have branches in China.
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 nationalized OCBC's two branches there, which became People's Bank No. 14..
The bank was criticized 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 Sri Khoo Teck Puat, who subsequent resigned to set up Malayan Banking. By 1970, the bank's total resources exceeded 1 billion SGD, making OCBC, then, the largest financial institution with the biggest deposit base in Singapore.
In 1972, the bank 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 targeted the Teochew community. The bank had branches in Bangkok, where it became the first Chinese bank there when it opened its branch in 1909, and in Hong Kong.
- 2001: OCBC Bank acquired Keppel Capital Holdings and all its subsidiaries, including Keppel TatLee Bank, Keppel Securities, and Keppel TatLee Finance. the next year OCBC Bank operationally and legally integrated Keppel TatLee Bank.
- 2003: Merger of OCBC Finance with OCBC Bank
- 2004: Official opening of e2 Power’s Cyberjaya Office. 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.
- 2006: OCBC completed acquisition of a 10% stake in Vietnam’s VP Bank.
- 2007: Commencement of business of OCBC China.
- 2008: Acquired 67% shareholding in PacificMas Berhad.
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).
Great Eastern Holdings
In 2004, OCBC acquired an 87.1% shareholding in 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, Indonesia, Vietnam 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.
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 its subsidiaries 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.
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 12th 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).
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, on 1 December 2008. 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.
Wing Hang Bank
On March 2014, OCBC Bank offered to pay nearly US$ 5Billion for Wing Hang Bank, one of Hong Kong's last family-owned banks. 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.
- Most Attractive Employer 2013 (Banking & Finance sector): Randstad Award 2013
- Best Bank in Singapore: Global Finance Best Developed Market Banks 2013
- Bloomberg has ranked OCBC Bank as the world's strongest bank in 2011, 2012.
- Bloomberg has ranked OCBC Bank as the world's 2nd strongest bank in 2013.
- Bank of the Year 2012, Singapore The Banker.
- Singapore Corporate Governance – Big Cap Category (Merit): SIAS Investors’ Choice Awards 2012
- Internal Audit Excellence (Merit): SIAS Investors’ Choice Awards 2012
- Koh Eng Kheng Eminent Benefactor: Singapore Children’s Society 2012
- Best Managed Board (Market Capitalisation of S$1 billion & above) – Gold Award: Singapore Corporate Awards 2012
- Among the World's 50 Safest Banks: Global Finance 2012
Citations and references
- Jo-Ann Huang (12 November 2010). "OCBC Surpasses DBS To Become No 1 Bank In Singapore". Today (Singapore). p. B2.
- "Canadians Dominate World’s 10 Strongest Banks". Retrieved May 3, 2012.
- Turnell (2009), p.226.
- "Singapore's OCBC offers $4.95 billion for Wing Hang Bank in bet on China growth". Retrieved 1 April 2014.
- Turnell, Sean (2009) Fiery Dragons: Banks, Moneylenders and Microfinnance in Burma. (NAIS Press). ISBN 9788776940409