Strategy - OCBC Group

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Strategy

The New Horizons strategy announced in February 2003, is our three-year plan to seek international growth via a build-and-transfer approach, and to build a high performance bank through a balanced business scorecard approach.

Seeking international growth

We will strengthen our market position in our two existing core markets of Singapore and Malaysia, and use this as a platform to transfer successful business models and product solutions to other ASEAN countries and China. Our aim is to establish a presence in a third country in 2005, and be poised to add another country, by 2006.

Building a high performance bank

Customers

We aim to expand our consumer and SME customer base, and to become a Top 3 consumer and SME bank in the combined Singapore-Malaysia market by 2005

Risk Management

We will build our consumer and business loan books prudently, and continually improve our credit processes to maintain a sound credit portfolio and a strong credit rating

Products

We will build best-in-class products and target 15% revenue contribution from new products annually. In the combined Singapore-Malaysia market, we aim to be Top 3 in wealth management, transaction banking, treasury and investment banking

Shareholder Value

We aim to achieve 10% earnings per share growth annually, a minimum dividend payout of 25% of core earnings, and a 12% ROE by 2005. We will seek to swap non-core assets for core financial services growth opportunities, and to return excess capital to shareholders via share buyback programmes

People

We will develop and foster human capital, and seek to have at least 30% of our employees as shareholders by 2005

Productivity

We will improve cross functional processes to lower our unit costs and become an efficient, low cost service provider