Strategy - OCBC Group

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Strategy

New Horizons II is our five-year strategy from 2006 to 2010. It continues on the broad strategic direction and successes of New Horizons (2003 to 2005). The emphasis is on embedding OCBC in the region through a build-and-transfer approach, and on continuing our efforts to build a high performance bank through a balanced scorecard discipline.

Seeking international growth

We will shift our emphasis from adding more country flags to deepening our market penetration in Malaysia, Indonesia and China. Our aim is to grow our market share in the consumer and SME segments in Indonesia and China by transferring successful business models and product solutions to existing branches and alliances in the two countries.

Building a high performance bank

Customers

	We aim to sustain our top 3 consumer banking position and become one of the top 3 corporate banks in the combined Singapore-Malaysia market.

Risk Management

	We will expand our balance sheet proactively to deliver enhanced risk-return, and execute our Basel II implementation plan in line with regulatory guidelines.

	We aim to maintain our position as one of the highest rated banks in Asia-Pacific.

Products

	We will build more best-in-class products and strive to become known for product innovation by sustaining 15% revenue contribution from new products annually.

	We aim to be one of the top 3 banks for wealth management, credit cards and unsecured lending in the combined Singapore-Malaysia market.

Shareholder Value

	We aim to deliver 10% earnings per share growth annually, as well as achieve and sustain ROE of above 12%.

	We will periodically review our target minimum dividend payout of 35% of core earnings for possible increase.

	We will continue to divest non-core assets at the right time and invest the gains in core financial services growth opportunities, and return excess capital to shareholders via share buyback programmes.

People

	We will build people resources with a focus on diversity, cross-border management skill sets and competences to support our overseas expansion efforts.

	We will maintain our share ownership schemes so that all our employees can easily own OCBC shares.

	We aim to continually improve employee satisfaction so that we are increasingly recognised as a regional employer of choice.

Productivity

	We will leverage our cross-border processing hubs in Singapore and Malaysia to deliver further efficiency gains.

	We strive to be an efficient, low cost service provider.