Ocbc Ar17 Fullreport English

BUILDING ON OUR
CORPORATE STRATEGY FOR

SUSTAINABLE GROWTH
ANNUAL REPORT 2017

CONTENTS
Our Purpose & Our Values Inside Front Cover

OUR PURPOSE
Our Corporate Strategy 1
Our Well-Diversified Business 2 We help individuals and businesses across
communities achieve their aspirations by providing
GROUP OVERVIEW innovative financial services that meet their needs.
Message from Chairman and CEO 4
Financial Highlights 12
Board of Directors 14
Management Committee 18 OUR VALUES
CUSTOMERS
OUR YEAR IN REVIEW
We listen to our customers and understand their needs.
Creating Sustainable Value for Our Stakeholders 20
We build enduring relationships with them by delivering
Serving Individuals through Different Life Stages 22
superior products and quality service.
Supporting the Full Spectrum
of Businesses in Their Growth Journey 26
PEOPLE
Seeing the Best in Our People 30
We treat each other fairly and with respect. We support
Creating Investor Value 32
our colleagues and invest in their development to help
#OCBCCares Programme 34
them realise their full potential. We recognise and reward
outstanding performance.
SUSTAINABILITY REPORT 42
TEAMWORK
GOVERNANCE
We, as team members, actively support each other across
Corporate Governance 63
the organisation as we work towards our common purpose.
Additional Information Required
As individuals, we expect total responsibility from ourselves.
under the SGX-ST Listing Manual 81
Capital Management 82
INTEGRITY
Risk Management 84
Fair dealing is the basis of our business. We assume everything
Pillar 3 Disclosures 95
we do is in full public view.
FINANCIALS
PRUDENT RISK TAKING
Financial Report 133
We are prudent risk takers because our customers rely on us
Management Discussion and Analysis
for safety and soundness.
Financial Statements
Group’s Major Properties
EFFECTIVENESS
Shareholding Statistics 274
We actively invest in infrastructure, process improvement
Five-Year Ordinary Share Capital History 276
and skills to lower our delivery costs. We do the right things
right the first time, on time, every time.
ADDITIONAL INFORMATION
GRI Standards Content Index 277
Further Information on Management Committee 280
International Network 284
Financial Calendar 286
Notice of Annual General Meeting 287
Proxy Form 295
Corporate Profile and
Corporate Information Inside Back Cover
OUR CORPORATE STRATEGY
DEEPEN PRESENCE IN CORE MARKETS
A leading, well-diversified Asian financial services group with a broad geographical footprint in North and
Southeast Asia, well-positioned to ride on global mega trends to deliver sustainable business growth. A resilient
and responsible business that generates long-term value for customers, employees, investors and the community.
CORE MARKETS
SINGAPORE MALAYSIA INDONESIA GREATER CHINA

Dominant market Entrenched and Extensive national Strong presence
position at home well-established presence with with dominance in
banking and comprehensive cross-border trade,
insurance franchise financial services wealth and
KEY GLOBAL offering capital flows
MEGA TRENDS
shaping
Asia’s growth
CORE BUSINESSES
Growing
Intra-Asia Trade
and Cross-Border BANKING WEALTH MANAGEMENT INSURANCE
Capital Flows Comprehensive “Asia’s Global Private Bank” Leading insurance
retail and commercial with integrated regional and presence in Singapore
banking franchise across wealth platform, across private and Malaysia, and
Rising Asian Wealth well-connected business banking, premier banking, growing franchise
and geographical network bancassurance, securities in Indonesia
and asset management
Urbanisation and
Continued Rise of
SMEs in Asia
CORE COMPETENCIES
Increasing Economic
Presence of China
DISCIPLINED RISK MANAGEMENT DIVERSIFIED FUNDING BASE
Advancements INVESTMENT IN TECHNOLOGY AND PEOPLE

in Technology
SUSTAINABLE BUSINESS PRACTICES
FAIR DEALING RESPONSIBLE FINANCING STRONG GOVERNANCE
COMMUNITY DEVELOPMENT INCLUSIVE WORKPLACE

OUR MORE THAN
WELL-DIVERSIFIED
BUSINESS
29,000
EMPLOYEES
We offer a broad array of commercial banking, specialist
financial and wealth management services, ranging from OVER
600
consumer, corporate, investment, private and transaction
banking to treasury, insurance, asset management and
stockbroking services.
BRANCHES AND
Our diversified businesses across 18 countries and regions
REPRESENTATIVE OFFICES IN
serve more than 9 million customers, comprising over
5 million banking customers and more than 4 million
insurance policy holders.
18
COUNTRIES AND REGIONS
MORE THAN
9M
CUSTOMERS
OUR BRANDS
S$
455b
TOTAL ASSETS
S$
51.9b
MARKET
CAPITALISATION
S$
4.1b
NET PROFIT
11.2%
RETURN
ON EQUITY
Aa- Aa1 Aa-

FITCH MOODY’S S&P
2 OCBC ANNUAL REPORT 2017

BROAD-BASED GROWTH ACROSS
OUR CORE MARKETS
s$
5.2b
Singapore Malaysia PROFIT BEFORE TAX
Indonesia Greater China Other network markets
Our four core markets generate substantial business for us

in our other network markets.
SUSTAINED EARNINGS MOMENTUM FROM

OUR CORE BUSINESSES
+19%
NET PROFIT
+8%
GROSS LOANS TO CUSTOMERS
+43%
WEALTH MANAGEMENT INCOME
+14%
GREAT EASTERN HOLDINGS
EMBEDDED VALUE
DEMONSTRATED STRENGTHS IN OUR CORE COMPETENCIES

DISCIPLINED RISK MANAGEMENT DIVERSIFIED FUNDING BASE
1.5% >300% 78% 49.2%

NON- ALLOWANCE COVERAGE PROPORTION OF PROPORTION OF
PERFORMING RATIO FOR UNSECURED FUNDING BASE CUSTOMER DEPOSITS
LOANS RATIO NON-PERFORMING ASSETS DERIVED FROM COMPRISING CURRENT
CUSTOMER DEPOSITS ACCOUNT AND
SAVINGS DEPOSITS
INVESTMENT IN TECHNOLOGY AND PEOPLE
7.9 +31% 11.3%

AVERAGE MAN DAYS OF INVESTMENT PROPORTION OF TOTAL EXPENSES
TRAINING PER EMPLOYEE IN TRAINING INVESTED IN TECHNOLOGY
AT THE FOREFRONT OF FINTECH INNOVATION IN SINGAPORE

First First First
Transactional API “We Economy” facial recognition feature
for instant GIRO setup in Singapore formed with for individuals and businesses to
StarHub partnership access mobile banking services
First AI-powered First AI-powered Among the first to tap AI

and machine learning in
home loans HR chatbot transaction monitoring to
for employees
chatbot ENHANCE DETECTION OF
“Emma”
SUSPICIOUS ACTIVITY
BUILDING ON OUR CORPORATE STRATEGY FOR SUSTAINABLE GROWTH 3

MESSAGE FROM
CHAIRMAN AND CEO
from left
Mr Samuel N. Tsien
Group Chief Executive Officer
Mr Ooi Sang Kuang

Chairman
2017 marked the 85th anniversary of OCBC Bank’s incorporation in 1932.

We are delighted to celebrate this occasion with you and are indeed
proud to share our rich heritage. Through the many decades, OCBC’s
solid reputation as a trusted financial institution was built on prudence,
integrity, trustworthiness and our steadfast commitment to delivering
long-term value for our customers, employees, shareholders and
the community. These values are the foundations that have anchored
our conduct and sustained our growth and accomplishments.
This year's Annual Report presents a new format to reflect our ongoing
efforts to provide readers with a more succinct yet comprehensive
document that concisely sets out our values, corporate strategy,
achievements and plans for the future.

2017 YEAR IN REVIEW
Global economic and financial conditions turned out better GDP growth at 3.6%, led by strong exports and output in the
than expected in 2017. We began the year on a cautious note manufacturing and services sectors.
with the global economy confronted with many uncertainties
arising from the threats of protectionism, the possibility of Our strong results reaffirmed the soundness of OCBC’s long-term
slower growth in the major economies, the uncertain pace corporate strategy and demonstrated the strength and resilience
of monetary tightening in the United States and heightened of our diversified franchise and extensive capabilities that
geopolitical tensions in Asia. However, as the year progressed, we have built over 85 years. For the financial year ended 2017,
global growth gathered strength across the major developed OCBC Group net profit after tax rose 19% to a new high of
and emerging economies while inflation remained benign. S$4.15 billion, driven by our key pillars of banking, wealth
The threat of protectionism retreated, while political management and insurance. All delivered robust performances.
posturing remained within safe boundaries. In short, stronger
growth and a gradual pace of monetary normalisation were DIVIDENDS
strong drivers for the pickup in risk-taking and consumer The Board has recommended a final tax-exempt dividend of
confidence. Around the world, equity markets responded 19 cents per share, an increase from the previous year’s 18 cents
with stellar performances. per share, bringing the total full-year 2017 dividend to 37 cents
per share, which was above the 36 cents per share of 2016. This
Closer to home, GDP growth surprised on the upside for most translated to a dividend payout ratio of 37% of our core earnings.
Asian countries. The economies of our key regional markets, Our approach to dividends is one where dividend payments are
namely Greater China, Malaysia and Indonesia, all recorded sustainable and predictable, and where we retain sufficient
favourable performances. Singapore’s economy did well with capital for long-term growth and new market opportunities.
Net Profit Total Income Cost-to-Income Ratio Earnings per share

(S$ billion) (S$ billion)
NET PROFIT TOTAL INCOME COST-TO-INCOME RATIO EARNINGS PER SHARE
(S$ billion) (S$ billion) (%) (cents)
3.47
4.15
19% 8.49
9.64
14% 44.6 41.9 2.7 82.2
97.6
19%
percentage
Points
2016 2017 2016 2017 2016 2017 2016 2017
CUSTOMER LOANS CUSTOMER DEPOSITS RETURN ON EQUITY BASEL III FULLY

Customer Loans Customer Deposits Return on Equity Basel III FullyCOMMON
Phased-in Common
(S$ billion) (S$ billion) (%) PHASED-IN
(S$ billion) (S$ billion) Equity Tier 1 Capital Adequacy Ratio
EQUITY TIER 1 CAPITAL
ADEQUACY RATIO
(%)
220
237
8% 261
284
8% 10.0
11.2
1.2 12.4 13.1
0.7
percentage percentage
Points Points
2016 2017 2016 2017 2016 2017 2016 2017
Please refer to Management Discussion and Analysis on page 134.

MESSAGE FROM CHAIRMAN AND CEO
SUPERIOR AND DIFFERENTIATED CUSTOMER EXPERIENCE

ACROSS OUR THREE CORE BUSINESSES
OCBC’s three core pillars of banking, wealth management and insurance provide our more than 9 million customers with
a comprehensive suite of financial solutions to support them in their growth journey across different life stages.
CONSUMER BANKING/WEALTH MANAGEMENT

OurAssets Under
consumer Management
banking and wealth management business offers customers access to a broad range of useful, suitable and affordable
financial products and services. In 2017, the Group saw broad-based growth across the franchise and we worked tirelessly to improve
the customer experience across every channel.
ASSETS UNDER MANAGEMENT

SERVING Highest number of
8 IN 10
(S$ billion)
162.90
188.40 16% NO.
1
BANCASSURANCE FAMILIES WITH
service excellence
award winners
3rd consecutive year
MARKET SHARE CHILD DEVELOPMENT Excellent Service Award (EXSA)
IN SINGAPORE ACCOUNTS IN for financial industry
SINGAPORE
2016 2017
Please refer to Serving Individuals through Different Life Stages on page 22.
COMMERCIAL/CORPORATE BANKING
Corporate Loans
In commercial and corporate banking, we continued to be the bank of choice for both established and emerging enterprises and
saw strong year-on-year business growth. We are a leading bank to the small and medium-sized enterprises (SMEs) in Singapore,
and our large corporate customers are served with our broad range of lending, treasury and funding solutions.
CORPORATE LOANS
NO.
1
Asia’s
1 IN 2
(S$ billion) LEAGUE TABLE
RANKING FOR MALAYSIA
Best Bank
122.70
132.25 8% SYNDICATED LOANS
for SMES
2
SMEs
IN SINGAPORE
BANK WITH US
NO. LEAGUE TABLE
RANKING FOR SINGAPORE
2nd consecutive year
Euromoney Awards
DOLLAR BONDS for Excellence
2016 2017
Please refer to Supporting the Full Spectrum of Businesses in Their Growth Journey on page 26.
INSURANCE
Our insurance subsidiary, Great Eastern Holdings, is the oldest and most established life insurance group in Singapore and Malaysia.
Its emphasis on improving the customer experience and delivering innovative services and products contributed to robust underlying
insurance business growth in 2017. The partnership between Great Eastern Holdings and the rest of the OCBC Group has allowed us
to Great Eastern
draw on Holdingsstrengths
our collective Great Eastern
to jointly Holding's
develop Great
new products and Easternthat
services Holding's Great Eastern
match the lifestyle and needs Holdings
of our customers.
Group Net Profit total weighted new sales new business embedded value Embedded Value
GREAT EASTERN HOLDINGS
NET PROFIT TOTAL WEIGHTED NEW SALES NEW BUSINESS EMBEDDED VALUE EMBEDDED VALUE
(S$ million) (S$ billion) (S$ million) (S$ billion)
1,156 96% 1.08

1.32 23% 470
548 17% 11.7
13.4 14%
589
2016 2017 2016 2017 2016 2017 2016 2017

DEEPENING PRESENCE IN OUR FOUR CORE MARKETS
In our core markets of Singapore, Malaysia, Indonesia and Macao Greater Bay Area to facilitate inbound and outbound
Greater China, we made significant progress in deepening business flows between the Greater Bay Area and the rest
our reach and capabilities to deliver sustainable and scalable of the OCBC network, as well as to support customer activities
business growth that is consistent with our corporate strategy. within the Greater Bay Area. Following a successful decade of
In May 2017, we grew our wealth management footprint in partnership with our 20%-owned associated company
Indonesia with the launch of onshore private banking services Bank of Ningbo, we signed another 10-year comprehensive
under PT Bank OCBC NISP Tbk. In November 2017, we successfully strategic agreement that will focus on greater collaboration
completed the acquisition of National Australia Bank’s Private for our onshore and offshore initiatives.
Wealth business in Singapore and Hong Kong.
Outside our core markets, we continued to invest in growing
We continued to build upon our strong foundation in our business in our network markets. Our private banking
Greater China, where we have more than 100 branches and subsidiary, Bank of Singapore, opened a new branch in the
offices in China, Hong Kong and Macao under OCBC Wing Hang. Dubai International Financial Centre to capture the large
We expanded our presence in the Guangdong-Hong Kong- potential in the Middle East.
TOTAL INCOME
cagr
(S$ million) Asean SME Bank
10%
of the Year
Total Income
+14% 7th consecutive year
9,636 Asian Banking & Finance Awards
8,489
6,621
Outstanding
Private Bank –
Singapore Asia Pacific
Malaysia Regional Player
Indonesia
Greater China Bank of Singapore
Private Banker International Awards
Other network
markets 2013 2016 2017
Mr Lee Hsien Loong, the

Prime Minister of Singapore
(far left), and Mr Samuel
Tsien, OCBC Bank Group
CEO (second from left),
officially unveiled the name
of our newly constructed
building in Xiamen, China,
at a ceremony in September
2017. The building is deeply
significant to us, as Xiamen
was the city where we first
established our presence
in China in 1925.
Photo: Lianhe Zaobao ©
Singapore Press Holdings Limited

POSITIONING FOR THE FUTURE WITH CONFIDENCE

Our long-term strategy and deep-seated core values have positioned us to adapt well to an ever-evolving operating environment.
To drive sustainable growth, we will continue to expand our network capabilities, invest for the future and remain alert to capturing
opportunities as they arise.
COMMITMENT TO CORPORATE VALUES

The Board of Directors champions the highest standards of governance, which are the foundation of our long-term success.
Strong board oversight and stewardship, a comprehensive compliance and risk framework, and a zero-tolerance stance on fraud,
bribery and corruption ensure that the trust our stakeholders have placed in us is safeguarded. As a respected financial institution,
we will continue to make the best use of our capabilities and resources to deliver a positive contribution to our stakeholders and
the broader community by operating responsibly and with integrity.
Mr Teo Chee Hean, Deputy Prime Minister of Singapore and Coordinating Minister for National Security (centre),
was invited to tour an exhibition at OCBC Centre in October 2017 with Mr Ooi Sang Kuang, OCBC Bank Chairman
(right), and Mr Samuel Tsien, OCBC Bank Group CEO. The exhibition was based on “Wind behind the Sails: The story
of the people and ethos of OCBC”, a book that charts OCBC Bank’s 85-year history and brings to life how our people
and values have guided the Bank through its defining moments over the generations.
LEVERAGING GROUP SYNERGIES THROUGH STRONG COLLABORATION AND NETWORK OPTIMISATION

Our unique business franchise and wide network connectivity have fostered a strong culture of collaboration among the OCBC Group,
which empowers us to provide customers with comprehensive financial solutions across businesses and markets. We will continue to
build on our capabilities to further capitalise on the deepening economic and financial integration in Asia and the strong synergies
across the OCBC Group to sustain superior business development, growth and profitability.

DELIVERING VALUE THROUGH DIGITAL TRANSFORMATION
We have invested heavily in technology to improve the customer experience with our industry-leading digital channels, technology
platforms and our many first-to-market digital banking solutions. This approach has positioned us at the forefront of our customers’
minds even as their needs and preferences evolve. We will continuously seek to harness big data technologies, predictive analytics,
artificial intelligence and machine learning to create new opportunities, improve customer experience, increase efficiency and enhance
our risk management and cybersecurity infrastructure. OCBC is active in the technology community and collaborates closely with
external fintech companies through our home-grown fintech and innovation unit, The Open Vault at OCBC. We also further promote
the incubation of our internal employee ideas at our expanded Innovation Lab.
11.3 % S$
100M
MORE THAN
PROPORTION OF TOTAL
+73 %
BUSINESS MOBILE
SINGAPORE HOME LOANS 800
EXPENSES INVESTED SECURED BY AI-POWERED FINTECH COMPANIES ENGAGED BY
BANKING CUSTOMERS
IN TECHNOLOGY CHATBOT “EMMA” THE OPEN VAULT AT OCBC
CREATING THE WORKFORCE OF THE FUTURE

Our continued success would not have been possible without the dedication and diligence of our highly-engaged employees, who have
delivered outstanding performance on a consistent basis. We refreshed our Employer Brand in 2017, firmly declaring our obligation to
care for our employees, invest in their development and make a meaningful difference for them. Reinforcing this commitment to create a
diverse and inclusive workplace, we will continue to reskill and upskill our employees to prepare them for a rapidly transforming landscape.
7.9
MORE THAN MORE THAN
Best Employer
29,000
EMPLOYEES CONTINUOUSLY
3,200
TRAINING AND
AVERAGE MAN DAYS
OF TRAINING
Singapore and Malaysia
Aon Best Employers Programme
RESKILLING AND UPSKILLING DEVELOPMENT PROGRAMMES PER EMPLOYEE
OPERATING SUSTAINABLY AND SUPPORTING COMMUNITIES

OCBC is dedicated to promoting sustainable and responsible Giving back to society is a key pillar of OCBC’s corporate culture.
practices to positively impact our stakeholders and the We actively engage and support the communities in which we
wider community. We are proud to introduce our inaugural operate. In March 2017, we launched the #OCBCCares Programme,
Sustainability Report that documents our consideration of extending our assistance to a broader segment of the community
and approach towards sustainability issues. This is consistent by way of funding and staff volunteerism, and championing causes
with the requirements (Listing Rules 711A and 711B) set by that include care for children and youths, the elderly and special
the Singapore Exchange. needs persons. In Singapore, we also launched the #OCBCCares
Fund for the Environment in July 2017, committing full funding for
ground-up projects that enhance environmental sustainability.
Number of beneficiaries impacted Amount donated Number of volunteers Number of volunteer hours
Please refer to Sustainability Report on page 42. Please refer to #OCBCCares Programme on page 34.
NUMBER OF AMOUNT DONATED NUMBER OF NUMBER OF

BENEFICIARIES HELPED (S$ million) VOLUNTEERS VOLUNTEER HOURS
111,699
196% 1.14
1.60
40% 7,560
9,118
21% 36,102
40,220
11%
37,764
2016 2017 2016 2017 2016 2017 2016 2017

OUTLOOK
Looking ahead, the strong momentum of growth in the In Asia, overly aggressive geopolitical posturing poses the risk of
global and regional economies is expected to carry into 2018, possible miscalculations and erosion of confidence.
possibly at a more moderate pace. Rising business and consumer
confidence globally is expected to increase investment activity, Overall and on balance, the pickup in economic and financial
lift consumer spending and drive trade expansion. The ASEAN activities is favourable for financial services. While possible surprises
economies are key beneficiaries of the expansion in global trade could undermine the current mood, OCBC is well-positioned to
and deeper Asian economic integration, while China’s Belt and participate in Asia’s growth story – which remains relevant and
Road Initiative is expected to spur infrastructure development sound in the medium to longer term. The steady execution of our
in the region. corporate strategy has made us a well-diversified and progressive
financial institution with an increasingly strong presence in key and
There are, however, possible developments that could potentially expanding economies and businesses. We will build on our solid
derail the positive near-term growth prospects. The key risks that foundations and further strengthen our long-term fundamentals
could trigger a sharp reversal of the current optimism include by investing in our brand, network, people, systems and technology.
large and disorderly adjustments to financial markets arising Needless to say, we will continue to enhance our risk management
from a higher-than-expected rise in inflation and central banks processes and framework. We are confident that OCBC’s financial
hastening the pace of monetary tightening. Some threats of strength, commitment to customer service and sound business
protectionism have been translated into action in early 2018, management practices will enable us to deliver sustainable and
and risks remain high that these could spread during the year. increasing value to our stakeholders.

ACKNOWLEDGEMENTS
On behalf of the Board, our thanks go to the management We have journeyed far since our humble beginnings in the face
team and all our staff for their dedication and efforts that of challenging times 85 years ago. The success we have built and
contributed to OCBC’s outstanding 2017 performance. sustained validates our long-term approach to business and our
We would also like to express our gratitude to our fellow Board focus on building steadfast relationships that have withstood
members for their valuable insight and guidance. The Board frequent swings in business cycles. It is also proof of our
extends a warm welcome to Mr Chua Kim Chiu, who joined demonstrated ability to adapt to shifts in markets, technological
the Board on 20 September 2017 as an independent director. advancements and evolving customer needs. However, we could
Mr Chua possesses a strong audit, accounting and financial not have achieved our accomplishments without the unwavering
background. Dr Teh Kok Peng, who had served on the Board of confidence, support and loyalty of our customers, employees
Directors since 1 Aug 2011, stepped down on 1 July 2017 and and shareholders. Thank you for sharing this rewarding journey
we thank him for his contributions during his six years as a with OCBC.
valued member of the Board.
Ooi Sang Kuang Samuel N. Tsien

Chairman Group Chief Executive Officer
14 February 2018

FINANCIAL HIGHLIGHTS
Group Five-Year Financial Summary
Financial year ended 31 December 2017 2016 2015 2014 2013

Income statements (S$ million)
Total income 9,636 8,489 8,722 8,340 6,621
Operating expenses 4,034 3,788 3,664 3,258 2,784
Operating profit 5,602 4,701 5,058 5,082 3,837
Amortisation of intangible assets 104 96 98 74 58
Allowances for loans and impairment of other assets 671 726 488 357 266
Profit before tax 5,216 4,275 4,825 4,763 3,567
Profit attributable to equity holders of the Bank 4,146 3,473 3,903 3,842 2,768
Cash basis profit attributable to equity holders of the Bank (1) 4,250 3,569 4,001 3,916 2,826
Balance sheets (S$ million)

Non-bank customer loans (net of allowances) 234,141 216,830 208,218 207,535 167,854
Non-bank customer deposits 283,642 261,486 246,277 245,519 195,974
Total assets 454,938 409,884 390,190 401,226 338,448
Assets, excluding life assurance fund investment assets 381,011 347,911 333,207 343,940 285,043
Total liabilities 413,162 370,242 353,079 367,041 310,369
Ordinary shareholders’ equity 37,509 35,507 33,053 29,701 23,720
Total equity attributable to the Bank’s shareholders 39,008 37,007 34,553 31,097 25,115
Per ordinary share

Basic earnings (cents) (2) 97.6 82.2 95.3 102.5 75.9
Cash earnings (cents) (1) (2) 100.0 84.5 97.6 104.5 77.6
Net interim and final dividend (cents) (3) 37.0 36.0 36.0 36.0 34.0
Net asset value (S$) (2)
Before valuation surplus 8.96 8.49 8.03 7.46 6.99
After valuation surplus 11.33 10.03 9.59 9.53 8.25
Ratios (%)
Return on ordinary shareholders’ equity 11.2 10.0 12.3 14.8 11.6
Return on assets (4) 1.14 1.03 1.14 1.23 1.05
Dividend cover (times) 2.64 2.27 2.62 2.81 2.29
Cost to income 41.9 44.6 42.0 39.1 42.0
Capital adequacy ratio (5)
Common Equity Tier 1 13.9 14.7 14.8 13.8 14.5
Tier 1 14.9 15.1 14.8 13.8 14.5
Total 17.2 17.1 16.8 15.9 16.3
(1)
Excludes amortisation of intangible assets.
(2)
Per ordinary share data for financial years prior to 2014 were after adjustment following completion of the one for eight rights issue on
26 September 2014.
(3)
The Group’s dividends are on a tax exempt basis.
(4)
The computation of return on average assets does not include life assurance fund investment assets.
(5)
The Group’s capital adequacy ratios were computed based on Basel III transitional arrangements.

Total Income Operating Expenses (S$ million) Operating Profit (S$ million)
Total Income(S$ million)
(S$ million) Operating Expenses (S$ million) Operating Profit (S$ million)
14% 6% 19% 5,602

9,636 4,034
3,788
8,722 3,664 5,082 5,058
8,340 8,489
3,258 4,701
6,621 2,784
3,837
FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17
Profit Attributable to Assets, Excluding Life Assurance Ordinary Shareholders’ Equity

Profit
Equity Attributable
Holders oftothe
Equity
BankHolders Assets, Excluding Life
Fund Investment Assurance
Assets Ordinary
(S$ Shareholders'
million)
of
(S$the Bank (S$ million)
million) Fund Investment Assets (S$ million)
(S$ million) Equity (S$ million)
19% 10% 6%
4,146 37,509
381,011
3,842 3,903 35,507
343,940 347,911 33,053
3,473 333,207
29,701
285,043
2,768
23,720
Basic EarningsPer
Basic Earnings Per Share
Share (cents)
(cents) Net DividendPer
Net Dividend Per Share
Share (cents)
(cents) Return onOrdinary
Return on Ordinary
Shareholders’ Equity
Shareholders' Equity (%)(%)
102.5 19% 3% 14.8 1.2

97.6 37.0
95.3 36.0 36.0 36.0
12.3
34.0 11.6 11.2
82.2 10.0
75.9
Return on Assets (%) Tier 1 CAR (%) Total CAR (%)
Return on Assets (%) Tier 1 CAR (%) Total CAR (%)

1.23 0.1 0.2 0.1
1.14 1.14 15.1 17.1 17.2
14.8 14.9 16.8
14.5 16.3
1.05 1.03 13.8 15.9

BOARD OF
DIRECTORS
Mr Mr Ooi was first appointed to the Board on 21 February 2012 and last re-elected as a Director on
28 April 2015. He assumed the role of Chairman on 1 September 2014. He was Special Advisor in
Ooi Sang Kuang Bank Negara Malaysia until he retired on 31 December 2011. Prior to this, he was Deputy Governor
and Member of the Board of Directors of Bank Negara Malaysia, from 2002 to 2010. Age 70.
Other Directorships and Appointments Academic and Professional Qualifications

OCBC Bank (Malaysia) Berhad, Board Chairman • Bachelor of Economics (Honours),
OCBC Al-Amin Bank Berhad, Board Chairman • University of Malaya
OCBC Management Services Pte Ltd, Board Master of Arts (Development Finance),
Director • OCBC Wing Hang Bank Ltd, Board Boston University, USA
Director • Xeraya Capital Labuan Ltd, Board Fellow Member of the Asian Institute of
Chairman • Xeraya Capital Sendirian Berhad, Chartered Bankers
Board Chairman • Target Value Fund,
Board Director OCBC Board Committees Served On
Directorships and Appointments Chairman, Executive Committee
for the past 3 years Member, Nominating Committee
Chairman Cagamas Berhad, Board Chairman • Cagamas Member, Remuneration Committee
Holdings Berhad, Board Chairman • Cagamas Member, Risk Management Committee
Independent director
MBS Berhad, Board Chairman • Cagamas SRP Length of Service as a Director
Berhad, Board Chairman • Financial Services 6 years 1 month
Talent Council, Council Member
Mr Mr Chua was appointed to the Board on 20 September 2017. He is a chartered accountant and
currently holds the position of Professor (Practice) in Accounting, National University of Singapore
Chua Kim Chiu (NUS) Business School. He had a long and distinguished career in PricewaterhouseCoopers (PwC)
Singapore where he served as a partner from 1990, headed the banking and capital markets group
as well as the China desk, and was appointed a member of the firm’s leadership team in 2005.
He retired in 2012, but was retained as senior advisor for PwC Hong Kong until June 2016 when
he left to join NUS. Age 63.

Department of Accounting | NUS Business School | Bachelor of Commerce and Administration
National University of Singapore, Employee; with Honours, Victoria University of Wellington,
Executive Committee, Chairman; Practice/ New Zealand
Education Faculty Search Committee, Chairman • Bachelor of Commerce, Nanyang Technological
Institute of Singapore Chartered Accountants | University (formerly Nanyang University),
Financial Reporting Committee, Chairman • Singapore
National University Health System Pte Ltd | Fellow Chartered Accountant of Singapore
Audit and Risk Committee, Member • Member of Chartered Accountants Australia
Independent director NUS Business School | Executive Education and New Zealand
Advisory Board, Member Fellow Chartered Certified Accountant,
United Kingdom
Directorships and Appointments
for the past 3 years OCBC Board Committees Served On
Jurong Health Services Pte Ltd, Board Director • Chairman, Audit Committee
Accounting Standards Council, Singapore, Member, Risk Management Committee
Member • MOH Holdings Pte Ltd | Audit and
Risk Committee, Member Length of Service as a Director
7 months
Mr Mr Lai was first appointed to the Board on 1 June 2010 and last re-appointed as a Director on
22 April 2016. He served more than 20 years in OCBC Bank in several senior capacities, including
Lai Teck Poh Head of Corporate Banking, Head of Information Technology & Central Operations and Head of
Risk Management. He was Head, Group Audit prior to retiring in April 2010. Before joining OCBC Bank,
he was Managing Director of Citicorp Investment Bank Singapore Ltd and had served stints with
Citibank N.A. in Jakarta, New York and London. Age 73.

AV Jennings Ltd*, Board Director • OCBC Bank Bachelor of Arts (Honours),
(Malaysia) Berhad, Board Director • PT Bank University of Singapore
OCBC NISP Tbk*, Board Commissioner
* Listed companies OCBC Board Committees Served On
Chairman, Risk Management Committee
Directorships and Appointments Member, Audit Committee
OCBC Al-Amin Bank Berhad, Board Director
Length of Service as a Director
7 years 10 months
Independent director

Dr Dr Lee was first appointed to the Board on 4 April 2003 and last re-elected as a Director on 28 April 2017.
He is presently an Associate Professor at the Duke-NUS Medical School in Singapore. He has previously
Lee Tih Shih served in senior positions at both OCBC Bank and the Monetary Authority of Singapore. Age 54.

Lee Foundation, Singapore, Board Director • MBA with Distinction, Imperial College, London
Selat (Pte) Ltd, Board Director • Singapore MD and PhD, Yale University, New Haven
Investments (Pte) Ltd, Board Director • Duke- Fellow, Royal College of Physicians of Edinburgh
NUS Medical School (Singapore), Employee
OCBC Board Committees Served On
Directorships and Appointments Member, Executive Committee
Nil
15 years
Non-executive and
non-independent director
Ms Ms Ong was appointed to the Board on 15 February 2016 and elected as a Director on 22 April 2016.
She is Co-Chairman and Senior Partner of Allen & Gledhill LLP as well as the Co-Head of its Financial
Christina Ong Services Department. Ms Ong is a lawyer and she provides corporate and corporate regulatory
and compliance advice, particularly to listed companies. Her areas of practice include banking and
securities. Age 66.

Allen & Gledhill LLP, Co-Chairman and Senior Bachelor of Laws (Second Upper Class Honours),
Partner • Allen & Gledhill Regulatory & Compliance University of Singapore
Pte Ltd, Board Director • Eastern Development Member, Law Society of Singapore
Holdings Pte Ltd, Board Director • Eastern Member, International Bar Association
Development Pte Ltd, Board Director • Epimetheus
Ltd, Board Director • SIA Engineering Company Ltd*, OCBC Board Committees Served On
Board Director • Singapore Telecommunications Member, Audit Committee
Ltd*, Board Director • Trailblazer Foundation Ltd, Member, Remuneration Committee
Board Director • Catalist Advisory Panel, Member Length of Service as a Director
• Singapore Tourism Board, Board Member • The 2 years 2 months
Independent director Stephen A Schwarzman Scholars Trust, Trustee
*Listed companies

for the past 3 years
Nil
Mr Mr Quah was first appointed to the Board on 9 January 2012 and last re-elected as a Director on
28 April 2017. He began his career at IBM and in 1987, joined the Government of Singapore Investment
Quah Wee Ghee Corporation (GIC), where he last held the position of President of Public Markets. He also served as a
Director of GIC and was the Managing Director and President of GIC Asset Management Pte Ltd from
2007 to 2011. Age 57.

Avanda LLP Singapore, Partner/ Managing Bachelor of Engineering (Civil),
Member • Avanda Investment Management Pte National University of Singapore
Ltd, Executive Director • Bank of Singapore Ltd, Chartered Financial Analyst
Board Director • Cypress Holdings Pte Ltd, Board Alumni Member of the Stanford Graduate
Director • Grand Alpine Enterprise Ltd, Board Business School
Director • Great Eastern General Insurance Ltd,
Board Director • The Great Eastern Life Assurance OCBC Board Committees Served On
Co Ltd, Board Director • MOH Holdings Pte Ltd | Member, Executive Committee
Investment and Evaluation Committee, Member, Remuneration Committee
Chairman • Wah Hin & Company (Pte) Ltd | Length of Service as a Director
Independent director Investment Committee, Advisor 6 years 3 months
EDBI Pte Ltd, Board Director •
Singapore Exchange Ltd, Board Director

BOARD OF DIRECTORS
Mr Mr Pramukti was first appointed to the Board on 1 June 2005 and last re-elected as a Director on
22 April 2016. He has been with PT Bank OCBC NISP Tbk for 30 years, holding key positions, including
Pramukti Surjaudaja President Director, and is presently President Commissioner of the bank. Age 55.

PT Bank OCBC NISP Tbk*, Board President Bachelor of Science (Finance & Banking),
Commissioner • PT Bio Laborindo Makmur San Francisco State University
Sejahtera, Board Commissioner • Indonesian Master of Business Administration (Banking),
Overseas Alumni | Board of Supervisors, Golden Gate University, San Francisco
Deputy Chairman • Insead, Southeast Asia, Participant in Special Programs in International
Council Member • Karya Salemba Empat Relations, International University of Japan
Foundation | Board of Trustees, Member •
Parahyangan Catholic University | Board of OCBC Board Committee Served On
Advisors, Member Member, Risk Management Committee
* Listed company Length of Service as a Director
Directorships and Appointments 12 years 10 months
Non-executive and for the past 3 years
non-independent director SBR Capital Ltd, Board Director •
President University | Board of Trustees, Member
Mr Mr Tan was first appointed to the Board on 2 September 2013 and last re-elected as a Director on
22 April 2016. He had a long career of 37 years as a banker. He spent 20 years in Citibank NA serving
Tan Ngiap Joo in various capacities, including Senior Risk Manager of Citibank Australia and postings overseas prior
to joining the OCBC Group in August 1990, where he held senior positions over the years, including
Chief Executive of OCBC’s Australian operations, and Head, Group Business Banking and was appointed
Deputy President in December 2001. He retired in December 2007. Age 72.

China Fishery Group Ltd*, Board Director • Bachelor of Arts, University of Western Australia
Mapletree Logistics Trust Management Ltd,
OCBC Board Committees Served On
Board Director • OCBC Al-Amin Bank Berhad,
Chairman, Nominating Committee
Board Director • OCBC Bank (Malaysia) Berhad,
Member, Audit Committee
Board Director • Mapletree India China Fund Ltd |
Member, Executive Committee
Investment Committee, Chairman
Member, Remuneration Committee
* Listed company
4 years 7 months
Independent director for the past 3 years
Banking Computer Services Pte Ltd,
Board Chairman •United Engineers Ltd,
Board Chairman • BCS Information Systems
Pte Ltd, Board Director • Tan Chong International
Ltd, Board Director • Breast Cancer Foundation |
Executive Committee • Member

MR Mr Tsien was first appointed to the Board on 13 February 2014 and last re-elected as a Director on
28 April 2017. He was appointed Group Chief Executive Officer on 15 April 2012. He joined OCBC Bank
Samuel N. Tsien in July 2007 as Senior Executive Vice President, managing the Group’s corporate and commercial
banking business. In 2008, he assumed the position as Global Head of Global Corporate Bank with
added responsibilities of overseeing the financial institution and transaction banking businesses. He has
40 years of banking experience. Prior to joining OCBC Bank, he was the President and Chief Executive
Officer of China Construction Bank (Asia) when China Construction Bank acquired Bank of America
(Asia). From 1995 to 2006, he was President and Chief Executive Officer of Bank of America (Asia), and
Asia Consumer and Commercial Banking Group Executive of Bank of America Corporation. Age 63.

OCBC Wing Hang Bank (China) Ltd, Board Bachelor of Arts with Honours in Economics,
Chairman • PT Bank OCBC NISP Tbk*, University of California, Los Angeles
Board Commissioner • Bank of Singapore Ltd,
Board Director • Dr Goh Keng Swee Scholarship OCBC Board Committees Served On
Fund, Board Director • Great Eastern Holdings Ltd*, Member, Executive Committee
Board Director • Mapletree Investments Pte Ltd, Member, Risk Management Committee
Group Chief Executive Officer Board Director • OCBC Bank (Malaysia) Berhad, Length of Service as a Director
Executive and non-independent director Board Director • OCBC Overseas Investments 4 years 2 months
Pte Ltd, Board Director • OCBC Wing Hang Bank
Ltd, Board Director • Association of Banks in
Singapore, Vice Chairman • Institute of Banking &
Finance Singapore, Vice Chairman, and Chairman
of Standards Committee • Advisory Board
of the Asian Financial Leaders Programme,
Member • Financial Sector Tripartite Committee,
Member • MAS Financial Centre Advisory Panel,
Member and Chairman of the China Workgroup •
MAS Payments Council, Member
* Listed companies

Asean Finance Corporation Ltd, Board Director •
OCBC Al-Amin Bank Berhad, Board Director •
ABS Benchmarks Administration Co Pte Ltd |
Oversight Committee, Member • Advisory Council
on Community Relations in Defence (ACCORD)
(Employer & Business), Member • Malaysia-
Singapore Business Council, Member •
Singapore Business Federation | Finance &
Investment Committee, Council Member
Mr Mr Wee was first appointed to the Board on 2 January 2014 and last re-elected as a Director on
28 April 2017. He has more than 39 years of corporate banking experience. He was Managing
Wee Joo Yeow Director & Head of Corporate Banking Singapore with United Overseas Bank Ltd until his
retirement in June 2013. Prior to that, he was Executive Vice President & Head of Corporate
Banking with Overseas Union Bank Ltd, and Head Credit & Marketing with First National Bank of
Chicago (Singapore). Age 70.

Frasers Centrepoint Ltd*, Board Director • Bachelor of Business Administration (Honours),
Great Eastern Holdings Ltd*, Board Director • University of Singapore
Mapletree Industrial Trust Management Ltd, Master of Business Administration, New York
Board Director • OCBC Management Services University, USA
Pte Ltd, Board Director • PACC Offshore Services
Holdings Ltd*, Board Director • WJY Holdings OCBC Board Committees Served On
Pte Ltd • Board Director, WTT Investments Pte Ltd, Chairman, Remuneration Committee
Board Director Member, Executive Committee
* Listed companies
Member, Nominating Committee
Independent director Member, Risk Management Committee
for the past 3 years Length of Service as a Director
Nil 4 years 3 months

MANAGEMENT
COMMITTEE
1. M
r Samuel N. Tsien
1 2
2. M
r Ching Wei Hong
Chief Operating Officer
3. Mr Darren Tan

Chief Financial Officer
4. M
r Lam Kun Kin
Global Treasury and 3 4
Investment Banking
5. Mr Vincent Choo

Group Risk Management
6. M
r Linus Goh
Global Commercial Banking
7. M
s Elaine Lam 5 6
Global Corporate Banking
8. Mr Na Wu Beng
CEO, OCBC Wing Hang Bank
9. Ms Kng Hwee Tin

CEO, OCBC Wing Hang
Bank (China)
7 8
10. M
r Bahren Shaari
CEO, Bank of Singapore
11. Mr Tan Wing Ming

Regional General Manager
for North East Asia
12. Mr Ong Eng Bin

CEO, OCBC Bank Malaysia 9 10
11 12

13. Ms Parwati Surjaudaja
13 14
President Director and
CEO, Bank OCBC NISP
14. Mr Gan Kok Kim

Global Investment Banking
15. M
r Dennis Tan
Consumer Financial
Services Singapore
15 16
16.Mr Tan Chor Sen
Global Enterprise Banking –
International
17. Mr Jason Ho

Group Human Resources
18. Mr Lim Khiang Tong

17 18 Group Operations
and Technology
19. M
s Goh Chin Yee
Group Audit
20. Ms Loretta Yuen

Group Legal and
Regulatory Compliance
19 20
21. Mr Peter Yeoh
Group Secretariat
22. Mr Vincent Soh

Group Property
Management
23. M
r Neo Bock Cheng
21 22 Global Transaction Banking
24. Ms Koh Ching Ching

Group Corporate
Communications
Please refer to Further

Information on Management
Committee on page 280.
23 24

CREATING SUSTAINABLE VALUE
FOR OUR STAKEHOLDERS
Our values define the ethos and culture of our organisation and underpin our continuous efforts
to create sustainable value for our stakeholders.
OUR CORPORATE STRATEGY

Our Corporate Strategy articulates how we CORE MARKETS CORE BUSINESSES
build a resilient business for the long term. Our four core markets – Singapore, Our core businesses of Banking,
Malaysia, Indonesia and Greater China Wealth Management and
It reflects our unique positioning in our key – are among the largest in North and Insurance are key growth drivers
markets and businesses that has consistently Southeast Asia. They provide us with both that draw on OCBC’s competitive
enabled us to successfully capture market the market depth and breadth to expand strengths to comprehensively
opportunities. We progressively formulate our business franchise. The regional and serve individual customers
international trade, capital, investment through their life stages and
and refine this strategy in order to embrace and wealth flows arising from these corporate customers across
opportunities that arise as global and markets offer tremendous opportunities their business life cycles.
regional mega trends evolve. for us to support both in-market and
cross-border customer requirements.
Please refer to Our Corporate Strategy on page 1.
SUSTAINABLE BUSINESS PRACTICES

Our franchise has been steadily built on Responsible Financing, beyond By promoting Community
sustainable business practices over many protecting the environment from Development in the markets
decades. We ensure that Fair Dealing forms untoward commercial interests, is also we operate in, we help to
the basis of everything we do. about ensuring that every transaction shape a healthy, growing and
makes sense for customers. inclusive society.
OUR UNIQUE PROPOSITION

TRUSTED ADVISOR BROAD GEOGRAPHICAL FOOTPRINT DIGITAL INNOVATIONS
The culture of OCBC is predicated upon our Our broad geographical footprint in North We have a two-pronged
values, with special emphasis placed on forging and Southeast Asia is attractive to our approach towards innovation:
lasting customer relationships based on trust customers who seek to expand beyond We incubate internal employee
and respect. This trust is hard-earned and we aim their home markets. In Southeast Asia, ideas at our Innovation Lab
to consistently uphold and surpass the ethical we are present in eight out of 10 ASEAN and we embrace external
standards that we are expected to live up to. countries and have deep local market collaboration with fintech
knowledge as well as strong regional companies through The Open
and international network connectivity. Vault at OCBC. By harnessing
We have 51 branches in Singapore, 45 new technologies – from
branches in Malaysia and more than 330 voice biometrics and chatbots
branches across 61 cities in Indonesia. In to application programming
Greater China we are well-represented interfaces (APIs) and artificial
with more than 100 branches, including intelligence (AI) – in a discerning
those within the Greater Bay Area. Beyond manner, we continue to
Asia, we have a presence in Australia, the push and expand boundaries
Middle East, United Kingdom and United to deliver first-to-market
States to support our customers’ growth digital offerings.
beyond the region.
OUR VALUES
CUSTOMERS PEOPLE TEAMWORK PRUDENT RISK TAKING

OUR
CORE COMPETENCIES
STAKEHOLDERS
Our core competencies are critical for the successful
execution of our corporate strategy. We exercise
Disciplined Risk Management because our stakeholders
trust us to stay safe and sound. By having a Diversified
Funding Base, a sound capital position and robust
balance sheet, we have the financial strength to CUSTOMERS
support growth and capture opportunities with
confidence. As the industry expands and becomes
increasingly complex, continued Investments in
Technology and People ensure that we have sufficient
resources to support sustainable growth.
Strong Governance is not just a EMPLOYEES

buzzword but a principle we uphold
consistently. We embrace diversity
in our Inclusive Workplace.
INVESTORS
CORPORATE SOCIAL RESPONSIBILITY
Our goal is to deliver long-term benefits to
the communities where we operate. Besides
sponsoring large-scale community projects
such as the Singapore Sports Hub and the
OCBC Skyway at the Gardens by the Bay to
promote national identity and bonding, our
employees actively volunteer in social work
across Singapore, Malaysia, China, Hong COMMUNITY
Kong and Indonesia. We rally behind families
including children and youths, the elderly
and special needs persons and champion
environmental sustainability.
INTEGRITY EFFECTIVENESS

SERVING INDIVIDUALS
THROUGH DIFFERENT LIFE STAGES
CHILDREN AND TERTIARY NEW TO EMERGING

YOUNG FAMILIES STUDENTS WORKFORCE AFFLUENT
More than
7% 29% 14%
280,000 increase in customers increase in OCBC 360 Account increase in digital sales and fees
Mighty Savers® Accounts aged 16 - 22 with balances in Singapore for wealth products in Singapore
opened in 10 years FRANK by OCBC Accounts
More than
in Singapore in Singapore 29%
Serving
S$1 billion increase in market share of
in customer spending per Singapore Exchange equity trades
8 in 10 year on OCBC 365 Card
families with Child
Development Accounts
in Singapore 79%
increase in unit trust sales
in Singapore
70% in Malaysia
increase in OCBC 360 Account
sign-ups in Malaysia 75%
increase in unit trust sales
in Hong Kong and Macao
OUR HARD WORK RECOGNISED

Highest number of winners Best Private Bank for International Retail Bank Best Online Trading Platform
across the financial industry Entrepreneurs in Asia-Pacific of the Year – Indonesia and Best Mobile Trading App
for three consecutive years Global Finance World’s Best Asian Banking & Finance – Singapore
Excellent Service Award (EXSA) Private Banks Retail Banking Awards Global Banking & Finance Review Awards
OCBC Bank Bank of Singapore Bank OCBC NISP OCBC Securities
Asia Pacific’s Leader in Outstanding Private Bank Outstanding Foreign Bank

Smart Payments Experience – Asia Pacific Regional Player Stockstar Capital Strength
IDC Financial Insights Private Banker OCBC Wing Hang China
Innovation Awards International Awards
OCBC Bank Bank of Singapore

BROAD-BASED GROWTH
ACROSS THE CONSUMER FRANCHISE
CONSUMER LOANS
(S$ billion)
Consumer Loans
95.30 102.75
8%
December 2016 December 2017
CONSUMER DEPOSITS
(S$ billion)
Assets Under Management
126.06 126.17
–
December 2016 December 2017
AFFLUENT HIGH AND
ULTRA-HIGH ASSETS UNDER MANAGEMENT (AUM)
30% NET WORTH
(S$ billion)
increase in OCBC Premier Wealth Income Management
16%
Banking income in Singapore
25%
11% increase in Assets Under
increase in OCBC Premier
Banking customers in Malaysia
Management (AUM) of
Bank of Singapore 162.90 188.40
18%
increase in OCBC Premier
Banking income in Malaysia December 2016 December 2017
Note: Comprises AUM of OCBC Premier Banking, OCBC Premier
31% Private Client, Bank of Singapore and OCBC Wing Hang Elite Gold
increase in Assets Under
Management (AUM) of Bank
OCBC NISP Premier Banking WEALTH MANAGEMENT INCOME
in Indonesia (S$ billion)
Consumer Deposits
CHALLENGES WE FACE
3.25
43 %
isruption from
D
non-traditional players
I ncreasing
cyber threats
2.27
lower economic growth
S I ncreasing volume and
in core markets sophistication of scams 2016 2017
oderation of business
M H
eightened customer Note: Comprises consolidated income from insurance, asset management,
and AUM growth expectations stockbroking and private banking subsidiaries, plus the Group’s income
from the sale of unit trusts, bancassurance products, structured deposits
ounting investments
M and other treasury products to consumer customers
in compliance

SERVING INDIVIDUALS THROUGH DIFFERENT LIFE STAGES
CHARTING NEW FRONTIERS TO PROVIDE MORE OPTIONS

AND DIGITAL INNOVATIONS
First bank-telco partnership

formed with StarHub
to create the first
“We Economy” in
Singapore, delivering
innovative solutions and
experiences to combined
base of about
5 million
Singapore customers
First artificial Launched “ Bob” handles 100 restructured OCBC Securities’ latest
home loan applications a day iOCBCfx app contributed to
intelligence-powered two robots
Home loans to enhance “ Zac” prepares a sales report in almost four-fold
chatbot “Emma”
processing speeds 12 minutes, compared to 120 minutes growth
when prepared by an employee in mobile FX trading
racked up S$100 million
in Singapore home loans for 38 currency pairs
within one year of launch
The Open Vault at OCBC engaged more than 800 fintech partners and helped three key
First bank in Singapore OCBC business units COMMERCIALISE SOLUTIONS WITH FINTECH COMPANIES
to distribute
health
insurance online
and on mobile
starting with
Early Cancer Care
First bank in Singapore

to roll out a
robo-advisory pilot
that customises and
regularly rebalances Mr Chan Chun Sing, Minister in the Prime Minister’s Office and Secretary-General of the National Trades Union Congress
(third from left), was invited to tour The Open Vault at OCBC in July 2017 to learn more about how OCBC Bank partners fintech
portfolios of stocks and companies to create innovative business solutions and deliver a seamless customer experience
exchange-traded funds Photo: National Trades Union Congress

First in Singapore to launch a
Launched
Facial Recognition Feature first transactional API
that allows individual customers to perform transactions on the
for instant GIRO setup which is being used by the
OCBC Mobile Banking, OCBC OneWealth™ and OCBC Pay Anyone™
Inland Revenue Authority of Singapore
apps with just a glance on their iPhone X devices
Bank of Singapore
opened a
Branch at
Dubai
International
Financial
Centre
for the well-heeled
in the Middle East
Launched Easy Q, a feature OCBC Al-Amin

on OCBC Mobile Banking strengthened family
app that provides takaful offerings
in Malaysia with
real-time distribution of
information on ONE PLAN-I,
which offers high
branch crowds coverage at an affordable
in Singapore regular contribution
Payments made Mighty Savers®

more convenient with the celebrated its
OCBC Keyboard 10 anniversary
th
feature, and in Singapore with
QR Code unique financial
literacy education Bank OCBC NISP launched
payments on
OCBC Pay Anyone™ app tour at pre-schools private banking service In Indonesia

SUPPORTING
THE FULL SPECTRUM
OF BUSINESSES IN
THEIR GROWTH JOURNEY
ESTABLISHED
ENTERPRISES
Dominant player
in key markets
MID-SIZED
SMALL AND ENTERPRISES
EMERGING Leading bank
BUSINESSES supporting
diverse industries
1 in 2
SMEs in Singapore
bank with us
WITH OUR F inancing for trade, business loans

and real estate
reasury advisory and investment
T
banking services
WIDE RANGE
ash management products,
C
OF PRODUCTS including Internet and mobile banking
AND SERVICES
WE ARE ONE OF THE MOST HIGHLY AWARDED SME BANKS

Asia’s Best Bank for SMEs ASEAN SME Bank of the Year Best Bank for SMEs Best SME Bank of the Year
2nd consecutive year 7th consecutive year in Singapore in Indonesia
Euromoney Awards Asian Banking & Finance Awards Asiamoney Best Bank Awards The Asian Banker
for Excellence
Best SME Bank Best SME Bank in Singapore Best SME Bank SME Bank of the Year
in Southeast Asia 6th consecutive year in Malaysia in Indonesia
5th consecutive year Alpha Southeast Asia Best Global Banking & 4th consecutive year
Alpha Southeast Asia Best Financial Institution Awards Finance Review Awards Asian Banking & Finance Awards
Financial Institution Awards

STRONG GROWTH IN CORPORATE
AND SME BANKING BUSINESSES
LARGE
CORPORATES CORPORATE LOANS
(S$ billion)Loans
Corporate
8%
Leading player
in corporate banking
and capital markets
122.70 132.25
December
December2016
2016 December2017
December 2017
Singapore Malaysia Indonesia Greater China

Other network markets
CORPORATE DEPOSITS
(S$ billion)Deposits
Corporate
114.29 122.37
7%
December
December2016
2016 December
December2017
2017
Singapore Malaysia Indonesia Greater China

Other network markets
+86%
SINGAPORE
EQUITY AND RIGHTS
pecialised financing, such as commodities,
S OFFERING VOLUMES
project and structured financing
CHALLENGES WE FACE
+81%
SINGAPORE DOLLAR
+73%
BUSINESS MOBILE
BOND VOLUMES BANKING CUSTOMERS
isruption from
D C
ompetition for
non-traditional players quality assets
olatile
V
commodity prices
lower economic growth

S
M
ounting investments
in compliance +55 %
SINGAPORE SYNDICATED
+31 %
TRADE LOANS
in core markets LOAN VOLUMES

SUPPORTING THE FULL SPECTRUM OF BUSINESSES IN THEIR GROWTH JOURNEY
PUSHING THE BOUNDARIES WITH INNOVATIVE PRODUCTS AND SERVICES
First in Singapore to launch a OCBC Malaysia

introduced
FACIAL RECOGNITION FEATURE the country’s
allowing business owners to first business banking
access their accounts on OCBC mobile app to allow
Business Mobile Banking app on customers to view
the iPhone X with just a glance their accounts using
FINGERPRINT
Pioneered the use of AUTHENTICATION
VOICE BANKING
in Singapore on OCBC Business Mobile
Banking app by leveraging Apple’s Siri OCBC Wing Hang
doubled its
Credit approval and loan disbursements new-to-bank
Launch of for Singapore SMEs now SME customers
PAPERLESS BUSINESS ACCOUNT OPENING four TIMES FASTER with enhanced
lets SME owners in Singapore open accounts services dedicated
more quickly using the iPad THAN BEFORE to corporates
WE ARE AMONG THE TOP BANKS IN LEAGUE TABLES

DEAL HIGHLIGHTS
SYNDICATED LOANS
S$
3.48B HK$
7b US$
790M US$
360m
M+S PTE LTD K WAH FINANCIAL SERVICES BEIJING GAS SIME DARBY PLANTATION
Mandated Lead Arranger Mandated Lead Arranger Joint Lead Manager Mandated Lead Arranger
and Bookrunner and Bookrunner
RM
2b US$
1b us$
470m US$
325M
PUBLIC SECTOR HOME CK HUTCHISON TRAFIGURA PT ASTRA SEDAYA FINANCE
FINANCING BOARD (MALAYSIA) HOLDINGS COMMODITIES FUNDING Arranger
Joint Lead Manager Mandated Lead Arranger Joint Lead Manager
BONDS
S$
700m S$
500m S$
300m S$
75m
MAPLETREE INVESTMENT COMMERZBANK AG ARA ASSET MANAGEMENT HEETON HOLDINGS
Lead Manager and Bookrunner Global Coordinator Lead Manager and Bookrunner Sole Lead Manager
and Bookrunner and Bookrunner
S$
700m S$
500m S$
285m US$
1.45b
SINGAPORE AIRLINES FRASERS CENTREPOINT GUOCOLAND INDUSTRIAL & COMMERCIAL
Lead Manager and Bookrunner Sole Bookrunner Joint Global Coordinator, Joint BANK OF CHINA (SINGAPORE)
Lead Manager and Bookrunner Lead Manager and Bookrunner

CONSISTENTLY RECOGNISING
OUTSTANDING BUSINESSES
OCBC Bank’s Memorandum OCBC Wing Hang China

of Understanding with signs Memorandum
Chongqing Rural of Understanding with
Commercial Bank SIIC Trade Group to
EMERGING ENTERPRISE AWARD
FACILITATES CROSS- DEEPEN CO- Jointly organised and sponsored with The Business Times
for 10 years to support exceptional young businesses in
BORDER FINANCING OPERATION WITH Key Singapore. More than S$1 million in prizes awarded in 2017
FOR SMES local customers alone, including OCBC business overdraft facilities of more
than S$750,000
BUSINESS CHINA AWARDS

EQUITY AND
Jointly presented with Business China for the past eight years,
FINANCIAL ADVISORY
to honour outstanding individuals and enterprises that have
IPO OF NETLINK NBN TRUST fostered stronger Singapore-China relations
Joint Bookrunner
and Underwriter
US$
250m IPO OF NO SIGNBOARD
HOLDINGS
ENTERPRISE 50 AWARDS
Proud sponsor for the past 12 years of this annual award which
recognises Singapore’s top 50 privately-owned companies
PT INDOMOBIL FINANCE Sole Underwriter, Bookrunner
Mandated Lead Arranger, and Placement Agent
Underwriter and Bookrunner
PRIVATISATION OF ENTREPRENEUR OF THE YEAR AWARD
125m
Longstanding sponsor over the past 16 years of Singapore’s
US$ GLOBAL PREMIUM HOTELS
Sole Financial Advisor oldest award honouring local entrepreneurs
EMIRATES PRIVATISATION OF GP
Original Senior Lender BATTERIES INTERNATIONAL
Sole Financial Advisor
IDS MEDICAL
SYSTEMS GROUP’S
STRATEGIC INVESTMENT
uS$
500m FROM INTERNATIONAL
FINANCE CORP
Sole Financial Advisor
INDONESIA EXIMBANK
Lead Manager and WARAS DINAMIK’S
Bookrunner TAKE-OVER OFFER OF
HALEX HOLDINGS
uS$
300m Financial Advisor
SALE OF INDONESIA’S LONGEST

PT ABM INVESTAMA TOLL ROAD BY CONSORTIUM THE EDGE BILLION RINGGIT CLUB
Lead Manager and OF FOUR SELLERS Sponsored by OCBC Malaysia since the award’s inception in 2010,
Bookrunner Sole Financial Advisor to recognise outstanding publicly listed companies in Malaysia
with over RM1 billion in market capitalisation

SEEING THE BEST
IN OUR PEOPLE
NURTURING 29,174
EMPLOYEES GLOBALLY
ABOUT MORE THAN
1 IN 5
JOBS FILLED
7.9
AVERAGE
31%
INCREASE IN
3,200

TRAINING AND
INTERNALLY MAN DAYS INVESTMENT DEVELOPMENT
OF TRAINING IN TRAINING PROGRAMMES
PER EMPLOYEE

Best Employer (Singapore and Malaysia) Only bank to be honoured in Excellence in Learning
Aon Best Employers Programme consecutive years with IBF Inspire & Development (Gold)
Award, for our strong commitment HR Excellence Awards
Best Graduate Recruitment Programme (Gold) to rigorous industry standards
Asia Recruitment Awards The Institute of Banking and Finance Awards Excellence in Graduate
Recruitment & Development (Gold)
Best Staff Referral Programme (Gold) Best Work-Life Balance (>500 employees) HR Excellence Awards
Asia Recruitment Awards HRM Awards

ATTRACTING, ENGAGING
AND DEVELOPING TALENT
Organised a range of
inaugural activities during
My Family Weekend
in Singapore for employees
and their families, to
promote family life
Bank OCBC NISP staff celebrating
the launch of OCBC’s refreshed
Employer Brand in Jakarta
Partnering newly opened
Global launch of Little Skool-House@
One Marina Boulevard
Refreshed — our third centre
Employer Brand collaboration — to give
reinforces OCBC’s reputation employees in Singapore
as an employer that is
Caring, Progressive and
more childcare
Delivering a Difference options
First bank in Singapore to Capitalising on

launch an HR mobile app,
data analytics
HR-In-Your-Pocket, to predict and pre-empt
featuring an artificial employee attrition as
intelligence-powered chatbot well as optimise hiring
MORE THAN MORE THAN
5,600

ATTENDEES AT
4,300

ATTENDEES AT
First-of-its-kind
FRANKpreneurship
programme
DIGITAL AND SINGAPORE’S INSTITUTE OF in Singapore instils spirit
FINTECH TRAINING BANKING AND FINANCE- of entrepreneurship in
ACCREDITED PROGRAMMES banking interns
OCBC Wing Hang launched
OCBC Bank has 6,830 OCBC Malaysia collaborated Young Bankers
employees in Singapore
on first-of-its-kind Programme
Wealth Management to nurture potential
leaders in Hong Kong
CHALLENGES WE FACE training programme
with the Asian Banking School
eveloping programmes
D I ncreasing competition
OCBC Wing Hang
that effectively meet for talent with
China launched
the varied needs of our digital skillsets
Bank OCBC NISP joined
diverse workforce scholarship
W
orkforce planning internal programme
aintaining a strong
M to identify future jobs
employer brand to and equip employees job posting for students to pursue
engage, retain talent with relevant skills programme, offering postgraduate studies in
more opportunities for Singapore, helping OCBC
employees in Indonesia and find local talent in the
across the OCBC Group markets it operates in

CREATING INVESTOR VALUE
FIVE-YEAR SHARE PERFORMANCE
OCBC Share Price (S$)
14 2013 2014 2015 2016 2017
12
10
0
Source: Bloomberg
2013 2014 2015 2016 2017

OCBC Share Price (S$) (1)
Highest 10.88 10.50 10.90 9.45 12.59
Lowest 9.30 8.84 8.54 7.45 8.98
Daily Average 10.00 9.60 9.85 8.60 10.68
MARKET
Last Done 9.91 10.46 8.80 8.92 12.39
CAPITALISATION
Market Capitalisation (S$ billion) – based on last done price 35.0 41.7 36.2 37.3 51.9
Ratios (1)(2)
Price-to-earnings ratio
Price-to-earnings ratio – based on core earnings
13.18
13.18
9.37
10.45
10.35
10.35
10.46
10.46
10.94
10.94
+39 %
Net dividend yield (%) 3.40 3.75 3.66 4.19 3.46
Price-to-NAV ratio 1.43 1.29 1.23 1.01 1.19
(1) Figures have been adjusted for the effects of the 1-for-8 rights issue effected on 26 September 2014.
(2) Price ratios and dividend yield are based on daily average share prices.

Singapore Corporate Singapore Corporate The Most Best Investor Relations Most Improved Investor
Governance Award, Governance Award, Trusted Company Company (Singapore) Relations in Singapore
Financials Category Big Cap Category 6th consecutive year Corporate Alpha Southeast Asia
Runner Up Merit Corporate Governance Governance Asia 7th Annual Institutional
SIAS 18th Investors’ SIAS 18th Investors’ Perception Index Award 7th Asian Investor Awards
Choice Awards Choice Awards Bank OCBC NISP Excellence Award for Corporates
OCBC Bank OCBC Bank OCBC Bank OCBC Bank

DELIVERING SUPERIOR AND SUSTAINABLE RETURNS
+19%
NET PROFIT
37¢
DIVIDEND
+39%
SHARE PRICE
PER SHARE
11.2%
RETURN
37%
DIVIDEND
44%
ONE-YEAR TOTAL
ON EQUITY PAYOUT RATIO SHAREHOLDER RETURNS
STRONG CREDIT RATINGS WITH STABLE OUTLOOK
AA -
FITCH
Aa1
MOODY'S
AA -
S&P
ENGAGEMENT WITH THE INVESTMENT COMMUNITY
Coverage Close to
by 27
500 meetings and
research conference calls
analysts with investors
Annual Semi-annual
General Meeting
in April 2017 "Live" webcasts
with of results briefings
approvals
above 90% Broker-hosted conferences
for all
resolutions and non-deal roadshows Quarterly results briefings
held locally and overseas with media and analysts
Corporate Timely and Detailed and

Day Relevant transparent
covering
wealth Disclosure disclosure
management of financial data, on asset quality
business corporate information and and portfolios of
and digital material announcements particular concern
innovations on OCBC Bank's website

PROGRAMME
LAUNCHED IN MARCH 2017
TO OFFER HOLISTIC SUPPORT
TO MAKE A DIFFERENCE
111,699
LIVES IMPACTED
40%
INCREASE IN DONATIONS
21%
INCREASE IN NUMBER
40,220
HOURS
OF VOLUNTEERS
Supported programmes Dedicated to
almost three-fold that delivered
increase in number About one-third building relationships
of beneficiaries sustainable of all OCBC employees gave with communities
long-term benefits back to the community
Addressed needs Equivalent to 1,676 days
that would be negatively Gave to those who were
impacted if not met in
more vulnerable or 4.6 years
a timely manner

Extending support to more segments of
the community, helping those who receive
less support and expanding efforts to
protect the environment
IN 2017, WE DONATED MORE THAN
S$1.6 MILLION
MORE THAN
9,100
EMPLOYEES CONTRIBUTED THEIR TALENTS,
OCBC Head of Group Corporate Communications,
Ms Koh Ching Ching (third from left), received the Champion
of Good award from Mr Heng Swee Keat (second from left),
TIME AND SERVICE TO COMMUNITIES, Minister for Finance, in November 2017. Organised by the
TO SUSTAINABLY IMPROVE LIVES National Volunteer & Philanthropy Centre, the award
recognises our contribution towards building a cohesive
and collaborative society
VOLUNTEERS VOLUNTEER BENEFICIARIES

HOURS HELPED
SINGAPORE
2,248 11,293 16,562

MALAYSIA
1,860 8,343 17,764

GARDENS BY SINGAPORE INDONESIA
THE BAY SPORTS HUB 2,238 3,610 8,493

Our 6th year Our 5th year
sponsoring the OCBC Skyway, as exclusive Premier
as part of our 18-year Founding Partner, GREATER CHINA
part of our 15-year
S$8 million
commitment S$50 million
commitment 2,772 16,974 68,880
#OCBCCARES PROGRAMME
A TOTAL OF 995 ACTIVITIES WERE ORGANISED

ACROSS OUR CORE MARKETS TO HELP THE NEEDY
SINGAPORE
Mr Desmond Lee, Minister for
Social and Family Development and
Second Minister for National Development
(centre), and Mr Ooi Sang Kuang,
Chairman, OCBC Bank (right),
prepared healthy egg meals
for 120 elderly beneficiaries
16 volunteers painted murals on walls

at a disability clinic set up by
the Movement for the Intellectually
Disabled of Singapore (MINDS).
The cheerful visuals provide a more
conducive environment and help calm
nerves as patients wait to see the doctor
OCBC Group CEO,

Mr Samuel Tsien
(fourth from left),
LAUNCHED THE
#OCBCCARES
PROGRAMME,
providing
s$
600,000
in annual funding for viable
initiatives proposed by our
chosen charity partners
The causes we support

include children and
youths, the elderly,
special needs persons
and environmental
sustainability
Our annual
OCBC Community Day opened up opportunities for
260 beneficiaries — both young and old — to try out
activities that were new to them
20 children from the Singapore Children’s Society

experienced a confidence-boosting workout
at a trampoline park, learning the values of perseverance
and team spirit as they perfected jumps

CHINA MALAYSIA
Responding to the November 2017
flood situation in Penang, we donated
a total ofRM205,080 to support
rebuilding efforts
37 employees whose homes were

affected received RM105,080
comprising RM55,080 raised by staff
and RM50,000 donated by the Bank
Through training and mentorship, Students from Zi Luo Lan

100 children from migrant families Primary School learnt to
Another RM100,000 was donated to
four schools and two homes housing
gained confidence to participate in the
care for plants, children, youths and the elderly
OCBC Wing Hang China Little Debate guided by our volunteers
HONG KONG AND MACAO
157 volunteers refurbished

an almost century-old school in
Bentong, to provide a conducive
learning environment for the students
OCBC Wing Hang CEO, Mr Na Wu Beng (right), and other volunteers cooked
nutritious meals for 150 underprivileged seniors in the local community
Special needs youths learnt
to bake cookies, under the guidance
30 volunteers interact regularly with the elderly residents of a home run by of 17 volunteers. The cookies were
Caritas to keep loneliness and depression at bay sold to our staff raising RM15,000
INDONESIA
52 volunteers
installed electricity
MENTORSHIP OF
Continuing our annual
and energy-saving YOUNG ASPIRING ENTREPRENEURS,
light bulbs in 14 volunteers dedicated 39 hours conducting
100 households in workshops to equip participants with the
West Bandung, right skills to succeed
SUPPORTING Of the 24 participants who received funding
VULNERABLE FAMILIES for their initial business start-ups, 16 have
successfully achieved sustainable results
AND THE ELDERLY

#OCBCCARES PROGRAMME
EXPANDING EFFORTS TO PROTECT OUR ENVIRONMENT
Our environmental efforts bring together various segments of the community to address sustainability
issues. We partner government bodies, advocates and citizen groups to restore and protect the environment.
In Singapore, the #OCBCCares Fund for the Environment commits full funding for ground-up projects that
enhance environmental sustainability. Beyond the Fund, we support initiatives to promote environmentally
responsible habits and conservation efforts.
SINGAPORE
1 ,400
volunteers participated in a
BIODIVERSITY
ENHANCEMENT
PROJECT
at Coney Island Park, propagating
endangered plant species,
undertaking coastal clean-ups
and conducting learning trips
250,000
s$
donated by management and staff
to support this initiative
Kicking off a biodiversity enhancement

initiative at Coney Island Park,
OCBC Chairman, Mr Ooi Sang Kuang
(second from left); OCBC Group CEO,
Mr Samuel Tsien (third from left);
Chairman of the Garden City Fund,
Professor Leo Tan (far left), and CEO of
NParks, Mr Kenneth Er (far right), planted
a sapling of the twin-apple tree which is
almost extinct in Singapore
110 volunteers participated in a sustainability exhibition in

March 2017 to encourage visitors to support the practice of
converting food waste into compost
The exhibition featured two large-scale see-through tanks that
showcased the odourless process. There was strong interest,
resulting in visitors taking away 3,000 cups of compost and seeds

LAUNCH OF THE #OCBCCARES FUND FOR HONG KONG AND MACAO
THE ENVIRONMENT IN SINGAPORE
Volunteers organised a workshop for

students from Kwun Tong Government
Primary School to
teach them about recycling
Mr Samuel Tsien,
OCBC Group CEO (in black),
and Mr N. Sivasothi,
Chairman of the Fund’s
evaluation committee,
adding the finishing touches
to a specially-commissioned
painting featuring the
Fund logo
First to provide full funding for ground-up projects that support At the St James’ Settlement upcycling centre,
environmental sustainability in Singapore volunteers and students
To ensure results, OCBC volunteers conducted workshops to help potential recycled fabric from
applicants prepare robust proposals and structure projects
damaged umbrellas
to make attractive school bags
A committee comprising key organisations responsible for Singapore’s
sustainability movement decided on projects to support
IDENTIFIED MALAYSIA
6
projects to receive
100 volunteers including
Mr Ong Eng Bin, OCBC Malaysia CEO (below),
S$87,000 planted hardwood trees

in the Bukit Lagong Forest Reserve
in funding
Beyond our sponsorship of the

OCBC Skyway at Gardens by the
Bay, OCBC staff volunteers regularly
organised visits for our charity
partners to enjoy the ever-changing
displays at the gardens. Staff
with a passion for gardening also
volunteered to take care
of the outdoor gardens
FOSTERING STRONG COMMUNITY BONDS
THROUGH OCBC CYCLE EVENTS
OCBC CYCLE SINGAPORE
OCBC CYCLE
IN NUMBERS
SINGAPORE
More than
6,500
participants,
including
834
OCBC Bank
employees
S$31,000
raised
for charity
OCBC Cycle Singapore

The nation’s largest cycling festival, , featured a
mix of competitive and non-competitive rides at the Singapore Sports Hub over
18 and 19 November 2017
The sold-out 23-kilometre The Straits Times Ride drew more than 2,000 cyclists.
More than 3,500 participants took on the challenge of the 42-kilometre The Sportive
Ride. The OCBC Mighty Savers® Kids and Family Ride allowed children aged 2 - 12
to ride with their parents for a fun-filled family bonding session
OCBC CYCLE KUALA LUMPUR
OCBC CYCLE
IN NUMBERS
KUALA
LUMPUR
More than
2,200
participants,
including
300 For the third consecutive year,
OCBC Bank
employees OCBC Malaysia sponsored the
OCBC KL Car Free Morning ,
The third edition of OCBC Cycle Kuala Lumpur a fortnightly event during which a
RM11,670 on 6 November 2017 gave cyclists the chance to ride past 7-kilometre stretch of road is closed
raised for sporting enthusiasts to run,
for charity iconic landmarks such as the Petronas Twin Towers, roller-blade or cycle through the
the Sultan Abdul Samad Building and the National Mosque heart of Kuala Lumpur

THE STRAITS OTHER INITIATIVES
TIMES RIDE UNDER OCBC CYCLE
was flagged
off by (from left)
Sport Singapore CEO,
Mr Lim Teck Yin;
OCBC Bank CFO,
Mr Darren Tan; and
The Straits Times
Executive Editor &
Managing Editor,
English/Malay/Tamil The RIDE SAFE PROGRAMME ,
Media Group, Singapore now in its third year, was jointly
Press Holdings, introduced by OCBC Bank and the
Ms Sumiko Tan National Parks Board to promote
safe cycling. The programme
teaches cyclists to better use
Mr Tan Hun Boon, a Singapore’s Park Connector
Network and to adopt good
BRONZE MEDALLIST cycling etiquette and practices
at the ASEAN Para Games 2017, rode
in The Straits Times Ride. He was
one of the guests-of-honour who
OCBC Bank
flagged off The Sportive Ride
sponsored five races
to crown the top male and female
Over three sessions, 120 OCBC Cycle cyclists as well as the best cycling
participants volunteered team in Singapore. The races,
which were sanctioned and
to teach26 children from organised by the Singapore
The Business Times Budding Cycling Federation, attracted
Artists Fund and Yu Neng more than 800 cyclists
Primary School how to cycle
OCBC CYCLE SPEEDWAY

OCBC Cycle Singapore Team Singapore Civil Defence Force
features a competitive held off the challenge from
element, in the form Team OCBC, GlaxoSmithKline,
of a series of OCBC Advanced Micro Devices and
Cycle Speedway eight other corporate teams to win
championship races the inaugural OCBC Cycle Speedway
Eight countries CORPORATE CHAMPIONSHIP

competed in the in Singapore
Southeast Asia
Championship, TWC Racing came out tops
with the Philippines among 15 local cycling clubs
capturing the in their maiden appearance
crown in 2017 from at the OCBC Cycle Speedway
Malaysia, which had
won the previous
CLUB CHAMPIONSHIP
in Singapore
two editions

SUSTAINABILITY
REPORT
ESTABLISH
SUSTAINABILITY COUNCIL
APPROVE
MATERIAL ESG FACTORS
SELECT
REPORTING
EVALUATE
ESG POLICIES,
AND SUSTAINABILITY FRAMEWORK PRACTICES,
WORKING GROUP PERFORMANCE
AND TARGETS

ABOUT THE REPORT
This report has been prepared in accordance with
the Global Reporting Initiative (GRI) Standards –
Core Option, as well as GRI G4 Financial Services Sector
Disclosures. The GRI Standards are internationally
recognised and provide robust guidance. Their
universal application allows for comparability of
performance. Reference has also been made to the
primary components of sustainability reporting as set
out by the Singapore Exchange’s “Comply or Explain”
requirements for sustainability reporting.
We have adopted a phased approach towards

sustainability reporting. As we move forward,
disclosure on performance and targets will be
further enhanced. We have not sought external
assurance for this reporting period. This report
covers the Environmental, Social and Governance
(ESG) performance of the OCBC Group for the
financial year ended 31 December 2017. Where
applicable, we have included data from previous
financial years for comparison. Our listed subsidiary,
Great Eastern Holdings (GEH), reports its ESG
performance separately.
MATERIAL ESG FACTORS

RESPONSIBLE BUSINESS PRACTICES
• Strong Governance
• Fair Dealing
• Responsible Financing
• Combating Financial Crimes and Cyber Threats
CORPORATE CITIZENSHIP
PUBLISH
• Economic Contributions
• Financial Inclusion
• Customer Experience
INAUGURAL SUSTAINABILITY REPORT • Community Development
EMPLOYER OF CHOICE
• Inclusive Workforce
ADDITIONALLY-DISCLOSED
ESG FACTOR
• Environment

SUSTAINABILITY REPORT
BOARD STATEMENT
Promoting and embracing sustainable business practices has been a priority of our Board and Management.
This is predicated upon our strong belief that a sustainable business is one that generates long-term value for
our stakeholders, including our customers, employees, investors, community and regulators.
We are pleased to present our inaugural These factors, which were identified The sustainability of our business
Sustainability Report. This documents and prioritised by our Management, practices, together with their transparent
our consideration of and approach have been validated by our Board. We disclosure, has gained greater impetus
towards sustainability issues and also share our targets, performance and with the implementation of sustainability
demonstrates our commitment towards selected case studies of these factors. reporting requirements by the Singapore
being a sustainable and responsible Exchange. Together with the Board,
organisation. We will publish the Report We recognise that sustainability is our Management remains vigilant in
annually to share the progress we make integral to the successful execution of managing our commitments to our
in this continuous journey. our corporate strategy. As we deepen our material ESG factors and to enhancing
presence in our core markets, this deep our practices over time. Lastly, we urge
This Report sets out the Environmental, conviction underpins and defines the way our stakeholders to share our commitment
Social and Governance (ESG) factors we conduct our business activities and towards improving our ESG performance
that we have assessed to be material has become embedded within the ethos in the markets we operate.
to the sustainability of our business. of the organisation.
Ooi Sang Kuang Samuel N. Tsien

Chairman Group Chief
Executive Officer

SUSTAINABILITY GOVERNANCE STRUCTURE
A robust governance structure is of paramount importance to the achievement of our sustainability commitments.
Our Board takes our ESG factors into careful consideration when formulating OCBC’s strategy. Together with
the Sustainability Council, the Board oversees sustainability efforts across the Group which are managed and
implemented by the Sustainability Working Group.
1ST LEVEL ROLE MEMBERS
BOARD The Board, which has Board Directors

overall responsibility over
our sustainability efforts,
oversees the monitoring and
management of our material
ESG factors.
2ND LEVEL ROLE MEMBERS
SUSTAINABILITY The Sustainability Council is Group Chief Executive Officer (Chairperson)

COUNCIL responsible for identifying,
managing and monitoring
Chief Operating Officer
material ESG risks and Head – Global Treasury and Investment Banking
opportunities. In addition, Head – Group Risk Management
it is responsible for the Head – Global Commercial Banking
development of OCBC’s Head – Global Corporate Banking
sustainability framework. Head – Group Human Resources
Head – Group Operations and Technology
Head – Group Corporate Communications
3RD LEVEL ROLE MEMBERS
SUSTAINABILITY The Sustainability Consumer Financial Services Singapore

WORKING GROUP Working Group is responsible
for engaging stakeholders,
Global Corporate Banking
Group Corporate Communications
collecting ESG data, drafting Group Human Resources
the Sustainability Report, Group Legal and Regulatory Compliance
measuring ESG performance Group Operations and Technology
and implementing Group Property Management
sustainability initiatives. Group Risk Management
Investor Relations

STAKEHOLDER ENGAGEMENT
We regularly engage our key stakeholder groups as this facilitates communication and allows us to deepen our
understanding of their needs and aspirations. Our approach towards stakeholder engagement is summarised in
the table below.
STAKEHOLDER INTERESTS HOW

GROUPS AND CONCERNS OCBC RESPONDS
CUSTOMERS • Commitment to customer relationships • Develop customer-centric products and solutions based
• Adherence to Fair Dealing on customer insights drawn from market research and
• Quality of advice customer interviews
• Relevance and suitability of recommended • Leverage technology to deliver superior customer experience
products and services • Design seamless and simple customer touchpoints
• Quality and consistency of service • Launch “Stay True” campaign, championing honest and
• Ease of doing business transparent advertising
EMPLOYEES • Supportiveness of work culture • Launch OCBC Employer Brand

• Progressiveness of work environment • Engage employees with HR policies and programmes based on
• Opportunities for continuous learning the three pillars of the OCBC Employer Brand – Caring, Progressive
and development and Delivering a Difference
INVESTORS • Stability and sustainability of • Pursue a prudent growth strategy

earnings growth • Construct a sound funding and capital framework and diversified
• Soundness of funding and capital position funding base
• Predictability and sustainability of • Maintain a consistent dividend policy
dividend payout • Apply robust risk management practices and disclosures
• Asset quality • Ensure strong Board oversight and transparent disclosures
• Strength of corporate governance • Adopt responsible financing framework and disclose sustainability
and stewardship commitments and practices
• Commitment to responsible
financing practices
COMMUNITY • Support for family cohesion • Launch #OCBCCares Programme to offer holistic support to
• Support for the needs of an make a difference
ageing population • Organise community engagement activities to build relationships
• Societal acceptance of special • Support biodiversity enhancements at Coney Island in Singapore
needs persons • Launch #OCBCCares Fund for the Environment to fully fund ground-
• Promotion of environmental sustainability up initiatives that deliver sustainable environmental impact
• Availability of education opportunities • Offer bond-free scholarships and book prizes
for children and youths • Sponsor OCBC Skyway at Gardens by the Bay and the Singapore
Sports Hub which includes OCBC Arena, OCBC Aquatic Centre and
OCBC Square
REGULATORS • Robustness of risk culture • Formulate a comprehensive compliance risk framework to

• Management of conduct risk provide a holistic approach to managing legal and regulatory risk
• Commitment to combating financial crime • Implement policies and procedures to ensure compliance with
• Strength of data governance and security applicable laws, rules and regulations
• Preparedness for cyber threats • Advise business units on applicable laws, rules and regulations
• Stability of financial performance • Provide regular training for employees on applicable laws,
• Responsiveness to fintech developments rules and regulations
• Conduct compliance testing
• Leverage fintech solutions to improve regulatory
monitoring effectiveness

ENGAGEMENT FREQUENCY
METHOD
• Surveys conducted by in-house market research team to obtain customer • Monthly tracking of service level
feedback and benchmark against competitors performance across various channels
• Focus groups and in-depth interviews and workshops and customer complaints
• Customer complaint tracking • Annual benchmarking against competitors
• Usability testing using specially-built prototypes for individual and corporate clients
• Bi-monthly reporting to
senior management
• Regular customer interviews and
usability testing
• Employee Engagement Survey • Biennial Employee Engagement Survey

• Quarterly e-mails from Group CEO on OCBC’s accomplishments and objectives • Ongoing engagement at the division and
• Divisional town halls department levels
• Internal newsletter — OCBC Teller
• Focus groups and skip-level sessions to obtain continuous feedback
• Financial reports and disclosures • Quarterly briefing for earnings

• Annual Report announcements
• Announcements on OCBC Bank’s website • Annual Report
• Announcements via SGXNet • Annual General Meeting
• Results briefings and webcasts • Regular meetings with investors
• Annual General Meeting with shareholders
• Meetings, conferences and roadshows
• Corporate Day
• Volunteer activities that provide assistance to beneficiaries and support • Regular disbursement of donations
the environment and funds to charity partners and
• Events that engage the community at large educational institutions
• Collaboration with partner organisations • Regular volunteer activities throughout
• Evaluation and disbursement of donations and funds to beneficiary groups the year
and ground-up efforts • Annual signature events, including
• Training workshops to help community members apply for funds from OCBC Cycle and OCBC Community Day
OCBC for ground-up environmental efforts in Singapore, OCBC Cycle in Malaysia and
OCBC Wing Hang Little Debate in China
• Regular meetings and consultations with regulators • Ad hoc and regular engagement, depending
• Representation at industry forums on the nature of the engagement
• Regulatory reports
• Audit reports

OUR ESG FACTORS
We conducted our first formal workshop in March 2017 to determine the IDENTIFICATION OF ESG FACTORS
Environmental, Social and Governance (ESG) factors that are material to us.
The assessment comprised a four-step process guided by GRI Standards.
For our inaugural Sustainability Report, our Sustainability Council had the
responsibility of identifying and prioritising ESG factors for reporting. ACTIVITIES
Moving forward, we will consider involving selected external stakeholders,
A list of ESG factors was identified through:
in a phased manner, in the assessment of our material ESG factors.
• Intensive engagement with representatives
GRI REPORTING PRINCIPLES GUIDING SUSTAINABILITY REPORT
of various business units
1. Sustainability context – Report shall represent the reporting organisation’s • Consideration of the interests and concerns
performance in the wider context of sustainability. of key stakeholders with whom we interact
• Benchmarking against banking peers’
2. S
takeholder inclusiveness – The reporting organisation shall identify ESG factors
its stakeholders and explain how it has responded to their reasonable
expectations and interests.
3. Materiality – Report shall cover topics which reflect the reporting GRI REPORTING PRINCIPLES GUIDING
organisation’s significant economic, environmental and social impacts or SUSTAINABILITY REPORT
substantively influence the assessments and decisions of stakeholders.
• Sustainability context (Principle 1)
4. Completeness – Report shall include coverage of material topics and their • Stakeholder inclusiveness (Principle 2)
boundaries, sufficient to reflect significant economic, environmental
and social impacts, and to enable stakeholders to assess the reporting
organisation’s performance in the reporting period.
WE HAVE DETERMINED THAT THE FOLLOWING ESG FACTORS ARE MATERIAL TO US.
RESPONSIBLE BUSINESS PRACTICES CORPORATE CITIZENSHIP
STRONG FAIR RESPONSIBLE COMBATING ECONOMIC

GOVERNANCE DEALING FINANCING FINANCIAL CRIMES CONTRIBUTIONS
AND CYBER THREATS
COVERAGE
• Regulatory Compliance • Product Suitability • ESG Risk Assessment • Anti-Money • Economic

• Anti-Fraud • Complaint • Reputational Laundering Performance
• Whistle-blowing Management Risk Management •C ountering the • Indirect
• Anti-Bribery • Prudence in Lending Financing of Terrorism Economic Impact
& Corruption •C yber Security
• Corporate Risk
Focused Organisation
GRI TITLES/ASPECTS
• Anti-Corruption • Marketing • Product Portfolio •C

ustomer Privacy • Economic
and Labelling (Financial Services •T
raining and Performance
• Product and Sector Disclosure) Education • Indirect
Service Labelling Economic Impact
(Financial Services
Sector Disclosure)
IMPACT AND BOUNDARIES
All stakeholders Customers, Customers and Customers, Employees,

across our businesses Employees and Employees Employees and Investors and
Regulators Regulators Community

PRIORITISATION VALIDATION REVIEW
The factors were then prioritised based • The Board validated the material • The material ESG factors
on the following set of criteria: ESG factors will be reviewed annually to
• The validated material ESG factors ensure relevance to the business
• Alignment with corporate strategy were subsequently mapped to and stakeholders
• Significance of ESG impact GRI Standards
of the business
• Significance of influence on
stakeholder assessments
and decisions
• Stakeholder inclusiveness • Stakeholder inclusiveness • Sustainability context

(Principle 2) (Principle 2) (Principle 1)
• Materiality (Principle 3) • Completeness (Principle 4) • Stakeholder inclusiveness
(Principle 2)
WE HAVE ADDITIONALLY
DISCLOSED THE
FOLLOWING ESG FACTOR.
EMPLOYER OF CHOICE ENVIRONMENT
FINANCIAL CUSTOMER COMMUNITY INCLUSIVE ENVIRONMENT

INCLUSION EXPERIENCE DEVELOPMENT WORKFORCE
• Financial Services • Customer • Financial and • Diversity and Inclusion • Electricity

Access and Experience Volunteer Support • Talent Management Consumption
Inclusiveness (including digital • Community Engagement and Retention • Water Consumption
innovation) • Sponsorship of Projects • Carbon Emission
and Activities
• Environmentally
Responsible Programmes
• Local Communities • Approach to • L ocal Communities • Employment • Energy

(Financial Services Stakeholder • Training and Education • Water
Sector Disclosure) Engagement • Diversity and • Emissions
• Product and Equal Opportunity
Service Labelling
(Financial Services
Sector Disclosure)
Customers and Customers and Customers, Employees Customers,

Community Employees Employees and Employees and
Community Community

STRONG GOVERNANCE RESPONSIBLE BUSINESS PRACTICES
WHY THIS IS MATERIAL TO US

Strong governance is critical to our long-term success, which is founded on building and safeguarding the trust that our stakeholders
have placed in us.
MANAGEMENT AND EVALUATION PERFORMANCE AND TARGETS
We are committed to the highest standards of We have been recognised for our emphasis on strong governance:
corporate governance and adopt a zero-tolerance
stance on fraud, bribery and corruption. We Best Managed Board – Gold
conduct our business ethically and comply with (Market Cap of S$1 billion and above)
applicable laws and regulations at all times. Singapore Corporate Awards 2016
Best Managed Bank in

SELECTED POLICIES Singapore and Asia Pacific
The Asian Banker 2016
OCBC Code of Conduct (includes anti-
bribery and anti-corruption policies) Achievement in Operational Risk
Sets out rules governing the offering or Management Award for 2017
acceptance of gifts and hospitality, and The Asian Banker Risk Management
specifies the authorisation processes for Awards 2017
payment of expenses
NO 100%
OCBC Fraud Risk Management Policy
Complies with laws and regulations so as to
uphold integrity and the highest ethical standards
Compliance Risk Management Framework CONVICTIONS COMPLETION OF

Enables risks to be managed in a structured, FOR BRIBERY AND MANDATORY
systematic and consistent manner CORRUPTION STAFF TRAINING
AND ASSESSMENT
SELECTED PRACTICES Note: The training performance includes employees in Singapore, Malaysia
and our other network markets
OCBC Whistle-Blowing Programme
Website: www.ocbcgroup.ethicspoint.com
Hotline: 800-110-1967 We will strive to maintain our good track record as we continuously
work at maintaining our culture of strong governance.
Mandatory Regular Staff Training and Assessment
Covers fraud awareness, whistle-blowing, anti-bribery
and anti-corruption
Group Legal and Regulatory Compliance submits

regular updates and reports to the Board and
Management. This includes regulatory updates and
regulatory breach reports. Group Audit independently
reviews all fraud and whistle-blowing cases and
reports its findings to the Board Audit Committee.
Fraud incidents are also reported to the Board
Risk Management Committee (BRMC).
Please refer to Fraud Risk Management on page 93.
Mr Patrick Chew, Head, Group Operational Risk Management, OCBC Bank (second from
left), and Mr Yong Shou Ming, Vice President, Group Operational Risk Management,
OCBC Bank (third from left), receiving the Achievement in Operational Risk Management
Award for 2017 in June 2017

FAIR DEALING RESPONSIBLE BUSINESS PRACTICES

Fair Dealing is the basis of our business because it enables us to forge enduring relationships with our customers.
MANAGEMENT AND EVALUATION
Integrity is one of six core values embraced by our

employees. We are committed to dealing with our
customers in a fair and professional manner and
ensuring that we act in their best interests.
SELECTED POLICIES
OCBC Fair Dealing Framework

Establishes all required components for the
delivery of the Fair Dealing outcomes
Product Suitability Policy, Guidelines

and Committee Financial needs analysis is performed to ensure suitable products are
Governs the Bank’s procedures for approving recommended to customers
new investment products to ensure suitability
for our target customer segments
PERFORMANCE AND TARGETS
SELECTED PRACTICES OCBC has established timebound metrics for employees to

receive training and to respond to complaints. The performance
Mandatory Annual E-Learning Course on these metrics is monitored and reviewed closely.
and Competency Assessment
Stresses importance of Fair Dealing and how
to deliver the various Fair Dealing outcomes
Product Training and Knowledge Testing

100%
Builds knowledge of wealth management products COMPLETION OF MANDATORY FAIR DEALING
E-LEARNING COURSE
Balanced Scorecard-Based Remuneration Framework
Requires sales staff to understand customer needs and
make suitable product recommendations
100%
Policies, processes and systems relating to Fair Dealing OF THE FEW INCIDENTS CONCERNING PRODUCT
and product suitability are periodically reviewed AND SERVICE INFORMATION AND LABELLING
and enhanced to ensure the delivery of desired WERE RESOLVED SATISFACTORILY
customer outcomes. The Bank’s Fair Dealing
performance is reported to Group CEO and the Note: The training performance includes employees in
Board on a quarterly basis. Singapore and Malaysia
We remain fully committed to conducting our business with

integrity and dealing fairly with our customers. We target zero
non-compliance pertaining to Fair Dealing requirements.

RESPONSIBLE FINANCING RESPONSIBLE BUSINESS PRACTICES

We recognise that promoting long-term sustainable development and providing financing that is in our customers’ best interests are
fundamental to our continuing success.
MANAGEMENT AND EVALUATION OTHERS
Under a traditional ESG risk assessment approach, Responsible Financing We acknowledge that certain industrial sectors are
focuses on protecting the environment and communities from untoward complex and have elevated ESG risks. For a better
commercial interests. However, at OCBC Bank, we take a broader view understanding of our lending exposure, please
of Responsible Financing beyond the traditional ESG considerations. refer to Pillar 3 Disclosures on page 95.
Responsible Financing is about ensuring that every transaction makes
sense for customers.
We are committed to advancing environmental and social progress and PERFORMANCE AND TARGETS
to conducting our business in a responsible manner. We integrate ESG
considerations into our credit and risk evaluation process, as part of We implemented our Responsible Financing –
our holistic approach towards risk management. This helps us to better ESG Risk Assessment in 2017, keeping to our
manage our risk exposure and generate long-term sustainable returns. internal timeframe and meeting the expectations
of The Association of Banks in Singapore (ABS).
As a responsible lender, we encourage financial prudence through the
More performance indicators will be identified
assessment of our customers’ repayment ability. We customise solutions
and tracked over time.
to meet their financial needs through both good and difficult times. This
involves working closely with our customers and offering appropriate
solutions, such as restructuring outstanding loans and/or revising
repayment plans for those that may be facing difficulties with meeting
their repayment obligations.
1,173
NO. OF EMPLOYEES WHO ATTENDED
RESPONSIBLE FINANCING TRAINING
SELECTED POLICIES
OCBC Responsible Financing Framework

Establishes an overall approach towards the management of
ESG risks in lending activities
MET
THE ASSOCIATION OF BANKS IN SINGAPORE
OCBC Responsible Financing Policy and Sectorial Policies RESPONSIBLE FINANCING GUIDELINES
Sets out the criteria and guidelines for the assessment of clients – THREE PRINCIPLES
and transactions in relation to ESG issues. For industries that could
have adverse ESG impact, in particular fossil fuel-fired power
generating facilities, enhanced due diligence is performed on
the operational aspects of the customers’ business activities.
NO
This includes seeking approval from the Reputational Risk Review TRANSACTIONS ESCALATED FOR
Group on transactions with these customers REPUTATIONAL RISK REVIEW GROUP’S
ASSESSMENT WERE APPROVED
Transactions with high ESG or reputational risk
SELECTED PRACTICES are escalated to the Reputational Risk Review Group
for review and clearance prior to credit approval
ESG Risk Assessment
Covers existing and new corporate and institutional borrowers
Mandatory Annual Training
Covers awareness of ESG matters and conducting of ESG risk assessment
506
Total Debt Servicing Ratio (TDSR) Analysis NUMBER OF CLIENT COMPLIMENTS RECEIVED
Assesses borrowers’ repayment ability so as to encourage BY COLLECTIONS DEPARTMENT
financial prudence
As a financial partner to our clients, we seek to

Periodic ESG-related reporting is made to the Group CEO and Board Risk positively influence their behaviour by engaging
Management Committee (BRMC) on the progress of our Responsible and supporting them in adopting appropriate
Financing implementation. We continue to engage non-governmental sustainable practices over time.
organisations (NGOs) that share our view that sustainability is an
ongoing journey for companies.

COMBATING FINANCIAL CRIMES
AND CYBER THREATS RESPONSIBLE BUSINESS PRACTICES

We are required to comply with the notices issued by the Monetary Authority of Singapore (MAS), Bank Negara Malaysia, Indonesia’s
Financial Services Authority, the China Banking Regulatory Commission, the Hong Kong Monetary Authority and other regulators
in the markets in which we operate for the prevention of money laundering and countering the financing of terrorism. We take cyber
security seriously. This is imperative given that cyber attacks, which have risen in volume and intensity globally, raise data privacy
concerns and have the potential to disrupt essential banking services.
We adopt a holistic approach to ensure that all To tackle the increasing scale and complexity of anti-money
risks relating to money-laundering, financing of laundering (AML) monitoring, OCBC is among the first Singapore
terrorism and cyber security are properly managed, banks to tap artificial intelligence (AI) and machine learning
mitigated and reported. to enhance the detection of suspicious activity. The use of
this technology will significantly increase OCBC’s operational
efficiency and accuracy in this area.
SELECTED POLICIES
OCBC is in an extended proof of concept, pre-implementation
OCBC Anti-Money Laundering/Countering the phase for the technology developed by fintech start-up ThetaRay.
Financing of Terrorism (AML/CFT) Framework Upon its successful conclusion, OCBC targets to begin fully
Incorporates regulatory requirements under implementing the technology, which will run in parallel with
MAS Notice 626 and aligns with international its existing transaction monitoring system, in the second
and industry AML/CFT standards quarter of 2018.
OCBC Cyber Risk and Resilience Policy

Incorporates regulatory requirements and PERFORMANCE AND TARGETS
aligns with international industry guidance
on cyber resilience OCBC has established performance metrics to track staff training
attendance as well as breaches of security or applicable laws and
regulations. These metrics are monitored and reviewed closely.
SELECTED PRACTICES
OCBC AML/CFT Programme

Ensures compliance with sanctions and performance
of customer due diligence
100%
SOCIAL ENGINEERING TESTING CONDUCTED AMONG
EMPLOYEES TO RAISE VIGILANCE ABOUT CYBER THREATS
OCBC Cyber Risk Awareness and
Social Engineering Testing Programme Note: Testing includes employees in Singapore, Malaysia, China,
Educates all employees about cyber threats and Hong Kong and our other network markets
continuously improves employee vigilance to guard
100%
against changing cyber threat landscape
OCBC Cyber Defence Programme

Continuously monitors network for cyber threats COMPLETION OF MANDATORY BIENNIAL AML AND
through a 24-hour Cybersecurity Operations Centre, CFT TRAINING AND ASSESSMENT
with constant upgrades of our cyber defence capabilities
Note: The training performance includes employees in Singapore,
OCBC Business Continuity and Malaysia and our other network markets
Crisis Management Programme
Ensures minimal disruption of essential banking
services during times of crisis, including cyber attacks,
and raises employee crisis management capabilities
100%
OF THE FEW CUSTOMER PRIVACY BREACHES WERE
RESOLVED SATISFACTORILY
Group Legal and Regulatory Compliance regularly
updates the Board and Management on the AML/CFT
programme with a range of key risk indicators, trends, We will strive to maintain our good track record as we
typologies and developments. continuously enhance our capabilities in combating financial
crimes and cyber threats.
Please refer to AML/CFT Risk Management and Technology,
Information and Cyber Risk Management on page 94.

ECONOMIC CONTRIBUTIONS CORPORATE CITIZENSHIP
GROUP TOTAL INCOME (S$) GROUP STAFF

COMPENSATION (S$)
8.49B (2016)
2.35B (2016)
$ 9.64B (2017)
$
$$
2.47B (2017)
GROUP GROUP RETAINED TO

INCOME TAX (S$) DIVIDENDS (S$) EARNINGS (S$)
629M (2016) 1.51B (2016) 20.26B (2016)

GROUP NUMBER
OF EMPLOYEES
803M (2017) 1.55B (2017) 23.02B (2017)

29,792 (2016)
$
$ 29,174 (2017)
Note: To be consistent with our financial statements, we have included Great Eastern Group's performance in this table.
Our economic contributions arise from compensation to our employees, taxes to the authorities, retained earnings and dividends to
our shareholders and payments to our suppliers. Where possible, we procure from local suppliers as part of our commitment towards
supporting the long-term development of local enterprises. Local suppliers are sourced from our core markets of operations – Singapore,
Malaysia, Indonesia, China and Hong Kong.
OCBC engages external service providers in IT, advertising and event management, outsourcing, HR recruitment, legal, real estate/
facilities maintenance and other services.
$$
LOCAL SPENDING
88% (2016)
TOTAL SUPPLY 92% (2017)
CHAIN SPENDING (S$) TOTAL VENDORS
1.25B (2016)
9,873 (2016)
1.18B (2017)
LOCAL VENDORS
9,380 (2017)
Note: The Total Supply Chain Spending includes 90% (2016)
90%
spending in Singapore, Malaysia, China,
Hong Kong and our other network markets
(2017)

FINANCIAL INCLUSION CORPORATE CITIZENSHIP

Financial inclusion enables individuals and businesses to have access to useful and affordable financial products and services that
meet their needs.
Our stated Purpose is to be a bank that helps Bank OCBC NISP is aligned with the Indonesia National Strategy for
individuals and businesses across communities Financial Inclusion (SNKI) and has the following programmes in place:
achieve their aspirations by providing
innovative financial services to meet their i. Promoting financial literacy among members of the public by
needs. In addition, we continue to innovate equipping them with financial management tools, including helping
digitally and have deployed technologies that housewives understand savings concepts
allow us to deepen our engagement with
customers through digital channels, extending ii. Providing financial education to customers by organising market
our reach beyond physical branches. outlook and tax amnesty awareness events
SELECTED POLICIES PERFORMANCE AND TARGETS
Comprehensive Suite of Products and OCBC has established performance metrics to track the performance
Services and Unique Value Proposition of our product offerings and customer life stage value propositions.
Serves customers throughout their life stages
NO.
1 7 %
and across segments MARKET SHARE INCREASE IN
OF CHILD NUMBER OF
DEVELOPMENT CUSTOMERS WITH
SELECTED PRACTICES ACCOUNTS FRANK BY OCBC
IN SINGAPORE ACCOUNTS
Baby Bonus Bank and IN SINGAPORE
Mighty Savers® Programme
Enables children to start their financial
journey from a young age
We will continue to promote financial inclusion through the offering of
FRANK by OCBC products and services that meet the needs of a broad range of customers,
Equips youths with financial knowledge and across their life stages.
avails investment and insurance products
OCBC Life Goals

Empowers customers to achieve their CASE STUDY
financial goals by adopting a structured,
and needs-based approach BANK OCBC NISP
OCBC Business First Loan INITIATIVE
Supports new businesses in their growth
journey by providing funds in a quick, hassle- EDUCATION AND ENTREPRENEURSHIP
free way, under Singapore government-backed The implementation of CSR activities
Enhanced SME Micro Loan Programme in the social and community fields is
guided by the Bank’s CSR policies.
FINANCIAL EDUCATION AND LITERACY PROGRAMME

We evaluate the effectiveness of our financial Access to financial services and the level of financial awareness
inclusion programmes by monitoring the level of remain low in certain areas. These become an obstacle to
product subscription over the years. This allows the financial independence and welfare of the communities.
us to refine and enhance our programmes to To address this issue, Bank OCBC NISP initiated the Financial
better cater to the needs of customers. Education and Literacy Programme, which aims to enhance
financial inclusion. Under this programme, the Bank created a
Please refer to Serving Individuals through Different board game “Smart Future”. This board game is shared with senior
Life Stages on page 22 and Supporting the Full high school students in major Indonesian cities and promotes the
Spectrum of Businesses in their Growth Journey learning of financial management skills from an early age.
on page 26.

CUSTOMER EXPERIENCE CORPORATE CITIZENSHIP

Our customers are fundamental to our business. As the needs and expectations of customers evolve, we are focused on continuously
delivering superior customer experience in order to deepen our engagement and forge enduring relationships with them.
MANAGEMENT AND EVALUATION PERFORMANCE AND TARGETS
We are committed to designing experiences that will We have been awarded the following accolades, which
make banking with us simpler and more seamless across recognise our efforts in deepening customer engagement:
customer channels and touchpoints.
Highest number of winners across financial industry
for the third consecutive year
Excellent Service Award (EXSA) 2017
SELECTED POLICIES
Asia Pacific’s Leader in Smart Payments Experience
Customer Problem Statement-Focused Approach IDC Financial Insights Innovation Awards 2017
Focuses on customer experience and innovation
Best Internet Bank
International Finance Magazine Awards 2016
SELECTED PRACTICES Best Online Trading Platform and

Best Mobile Trading App – Singapore
Dedicated Teams (e.g. digital channels and OCBC Securities
branch services) Global Banking & Finance Review Awards 2016
Drives active engagement with target
customer segments
A key metric we use is the Net Promoter Score (NPS),

1ST
formulated by our Customer Experience team, which NET PROMOTER SCORE (NPS) AMONG PRIMARY BANK
evaluates the proficiency and service level of our CUSTOMERS – J.D. POWER SINGAPORE RETAIL BANKING
customer touchpoints. Quarterly NPS studies are SATISFACTION STUDY (2017)
regularly reviewed by the Service Excellence Council,
which is chaired by the Group CEO and attended by
all division heads. FIRST-TO-MARKET
Please refer to Serving Individuals through Different Life Stages on DIGITAL INNOVATIONS
page 22 and Supporting the Full Spectrum of Businesses in their
Growth Journey on page 26.
We have been a frontrunner in digital innovation as part of our
continuous efforts to meaningfully improve our customers’
banking experience. We will continue to foster a culture of
innovation internally, while leveraging external expertise
through collaborations with fintech companies, to harness the
power of digital technology and deepen customer engagement.
Ms Cindy Ong, Branch Manager at our Ang Mo Kio branch, was recognised with Our Innovation Lab was formed in 2013 to provide employees with a dedicated space
The Association of Banks in Singapore (ABS) Service Excellence Champion 2017 award to test ideas and build prototypes

COMMUNITY DEVELOPMENT CORPORATE CITIZENSHIP

Giving back to society is an integral part of our corporate culture. Through our community engagement and environmental
sustainability efforts, we promote community development in the markets we operate in and help to shape a healthy,
growing and inclusive society.
OCBC CSR THEMES
Elderly
MEETING THE HEALTH AND SOCIAL INTERACTION NEEDS
Families
SUPPORTING COHESION
OF AN AGEING POPULATION
Environmental Special needs people

sustainability
ENCOURAGING SOCIETAL ACCEPTANCE
PROMOTING ENVIRONMENTALLY RESPONSIBLE

BEHAVIOUR AND CONSERVATION EFFORTS
Please refer to #OCBCCares Programme on page 34.

INCLUSIVE WORKFORCE EMPLOYER OF CHOICE

Our employees are critical assets of the Bank and it is therefore imperative that we invest in and support them in their
development. This belief is enshrined in People, one of our core values. An inclusive workforce allows individuals to
contribute effectively and provides the organisation with diverse perspectives, skills and talents.
MANAGEMENT AND EVALUATION
We are committed to creating a work environment where we embrace differences and recognise the value and contributions
of individuals.
SELECTED POLICIES SELECTED PRACTICES
OCBC Employer Brand Group Internal Job Posting Programme On-Site Childcare Centre
Articulates our people Encourages career mobility and fosters Offers convenient childcare option for
programmes and policies a continuous learning culture employees with young children
anchored on our three
Employer Brand pillars Life Refresh Programme HR in Your Pocket (HIP) Mobile Application
(Caring, Progressive, Supports mature employees in Gives employees access to HR services
Delivering a Difference) managing their careers and planning on the go, facilitated by artificial
ahead for retirement intelligence-powered chatbot
Management is committed to receiving regular employee feedback and acting on the findings from the Bank’s biennial
employee engagement survey. Policies and programmes will continue to be enhanced to attract, engage, develop and
retain a diverse employee group.
SUPPORTING NATIONAL DEFENCE
At OCBC, we believe that National Service is both the backbone and

the frontline of Singapore’s national defence. As an NS Mark-accredited
company, we fully support our employees contributing to nation-building.
We effectively accommodate our employees’ NS duties by arranging
for their work to be covered during the time they are away. As part of
the celebration of NS50, many of our employees came to work in their
uniforms on 30 June 2017. We also shared their inspiring stories with
our colleagues.
To celebrate NS50, many of our employees showed up at work on
30 June 2017 decked out in their military uniforms, while others came
dressed in camouflage patterns to pay tribute to our national servicemen
PERFORMANCE AND TARGETS
OCBC has received the following awards which speak to our strong employment practices:
Best Employer Excellence in Learning Excellence in Graduate

(Singapore and Malaysia) & Development Recruitment & Development
Aon Best Employers Programme Gold Gold
2016 – 2017 HR Excellence Awards 2017 HR Excellence Awards 2017
We will continue to work on our people programmes to deepen employee engagement and enhance our employment practices.

Legend Male <30 years old VP and above Managers
Female ≥30 and <50 years old AVP and Management and Associates
≥50 years old Associates Non-executives
OUR STATISTICS
Note: The statistics include employees in Singapore, Malaysia, Indonesia and China
WORKFORCE (PERMANENT + CONTRACT STAFF)
GENDER AGE GROUP EMPLOYMENT NATURE
Permanent Contract
2015
97 3 % %
37%
Total
21,211 59% 41% 55%
8%
2016
97% 3%
Total 35%
21,771 59% 41% 57%
8%
2017
97% 3%
33%
Total
21,554 59% 41% 59%
8%
EMPLOYEE CATEGORY BY GENDER EMPLOYEE CATEGORY BY AGE GROUP
80 57% 59% Legend

60 55%
<30 years old
59% 59% 59% ≥30 and
60 <50 years old
40 37% ≥50 years old
41% 35% 33%
41% 41%
40
20
20
8% 8% 8%
0 0
Male Female Male Female Male Female
2015 2016 2017 2015 2016 2017
GOOD REPRESENTATION CASE STUDY
OF FEMALE LEADERS To celebrate International

Women’s Day, we hosted a
Women hold a range of vital roles across the series of activities centred
OCBC Group, in line with our belief in equality around the theme of “Inspiring
in the workplace. Our commitment to building Women, Empowering Women”
a diverse workforce is further exemplified by throughout March 2017.
the presence of women in senior management
and leadership positions. In one of the key activities,
OCBC employees from
LEADERSHIP SENIOR MANAGEMENT Singapore, Malaysia, Indonesia,
POSITIONS POSITIONS Hong Kong and Macao were
asked to send in stories about
women who inspired them.
26% Thirty women, ranging from
39% 61% mothers to politicians, stood out in these stories and were selected
74% to be featured in a mural collage. This collage was displayed at the
OCBC Centre foyer in Singapore from 6 to 8 March 2017.

Legend Male <30 years old VP and above Managers

Female ≥30 and <50 years old AVP and Management and Associates
≥50 years old Associates Non-executives
OUR COMMITMENT TO TRAINING AND DEVELOPMENT

MORE THAN AVERAGE TRAINING HOURS AVERAGE TRAINING HOURS
3,200
BY EMPLOYEE CATEGORY BY GENDER
80 Total Total Total

PROGRAMMES 54 47 50
70 60
We believe in taking a holistic 60
approach to training and developing 50
50
our employees. We equip them with 40
more than banking and technical 40
skills by offering a wide spectrum of 30
30
programmes, covering areas ranging 20
from leadership to emerging fields 20
such as data analytics. This is central 10 10
to our commitment to helping our 0 0
employees realise their full potential.
2015 2016 2017 2015 2016 2017
NEW HIRES (PERMANENT STAFF ONLY)
2015 2016 2017 PROPORTION OF

Total 4,007 Total 3,722 Total 3,483 TOTAL WORKFORCE
19%
20 17%
GENDER 54% 46% 53% 47% 53% 47% 16%
15
10
69% 69% 68%
AGE 5
30% 30% 31%
GROUP
1% 1% 1%
0
2015 2016 2017
ATTRITION (PERMANENT STAFF ONLY)
2015 2016 2017 PROPORTION OF

Total 3,462 Total 3,910 Total 3,756 TOTAL WORKFORCE
20 18%
17%
16%
GENDER 54% 46% 52% 48% 55% 45%
15
10
55% 55% 47%
AGE
41% 41% 47% 5
GROUP
4% 4% 6%
0
2015 2016 2017

ENVIRONMENT
WHY WE HAVE ADDITIONALLY DISCLOSED THIS
The environmental impact arising from the operational activities of financial institutions is relatively small, compared to companies
operating within the industrial sector. But we realise that environmental sustainability is of prime importance to Singapore and the
world at large. In this regard, we have decided to additionally disclose our environmental impact despite it not being a material ESG
factor to the Bank.
This disclosure focuses on We introduced the #OCBCCares Fund for the Environment in 2017 to fund projects that
our electricity and water have a sustainable and positive impact on the environment, paying out a total of up to
consumption, as well as our S$100,000 annually.
generated carbon emissions
in accordance with the GRI Please refer to #OCBCCares Programme on page 34.
Standards that apply to the
environmental impact from
an organisation’s operations. PERFORMANCE AND TARGETS
2016 2017
We are committed to ensuring Electricity usage (kWh ’000) 80,462 84,672
that our building and branch
Electricity usage intensity (kWh/sf) 21.3 22.4
operations are environmentally
friendly and create minimal Carbon emission* (Tonne CO2) 40,242 41,200
impact on the environment. Carbon emission intensity (kg CO2/sf) 10.6 10.9
Our Group Property Management Water usage (m3) 410,114 402,255
division adopts recycling and Water usage intensity (m3/sf) 0.1 0.1
energy-saving measures in
our buildings, including the * Emission Factor Source: Institute of Global Environment Strategies (IGES) –
installation of automatic sensor IGES Grid Emission Factors Version 9.2
taps and energy-saving lighting
and air-conditioning systems. We will continue to seek new solutions to reduce our environmental impact across
our operations.
One way we evaluate our
environmental impact is
through our utilities bills, which
CASE STUDY
reflect our consumption of
resources. If there are significant
variances across the months, INITIATIVE TO REDUCE PLASTIC WASTE
we will conduct an analysis to Our Consumer Financial
understand the causes. This will Services (CFS) division
also help us better manage embarked on an
consumption in future. initiative in September
2017 to eliminate single-
use plastic materials.
Our colleagues were
inspired to take action
after an organised
OCBC employees doing their part to reduce plastic waste by serving
coastal clean-up event
water to branch visitors in 100% biodegradable cups at the Pasir Ris beach in
Singapore, where they
witnessed 1.5 tonnes of trash collected within two hours – the bulk of it being
unrecycled plastic waste.
The first task, as part of developing an environmentally sustainable culture

within our premises, was to eliminate the use of plastic bottled water at our
CFS Singapore headquarters. This was then extended to the entire network
of branches in Singapore. As a replacement, we now serve water in 100%
biodegradable cups to our customers and visitors. This simple act has saved an
estimated 70,000 single-use plastic bottles since the start of the initiative and
will save an estimated 5,000kg of plastic waste annually.

CASE STUDY
OUR
GREEN MARK-
CERTIFIED
BUILDINGS
We constantly explore ways to minimise

the carbon footprint arising from our
operations and have a total of seven
buildings that have been accorded
Green Mark status by the Building and
Construction Authority (BCA) in Singapore.
These include our headquarters,

OCBC Centre (pictured to the left), which
is the oldest historic site in Singapore to
achieve the Green Mark Gold certification.
OCBC Centre was completed in 1976 but
extensively retrofitted in 2011, which
reduced its annual consumption of
electricity by about 2.7 million kWh and
of water by 17,000m3. We also successfully
renewed the Green Mark certifications
for OCBC Tampines Centre One and
OCBC Tampines Centre Two in 2017.
GREEN MARK PLATINUM STATUS AWARDED TO OUR DATA CENTRE
In 2017, we completed the construction of a data centre that was certified with the BCA-IMDA Green Mark Platinum
Award – the highest standard achievable in Singapore. Utilising water-based cooling systems and cold-aisle containment
technology that significantly reduce the energy required for cooling, as well as a diesel rotary uninterruptible power
supply system (pictured below) that ensures efficient power usage, the data centre is 30% more energy efficient than
other standard data centres in Singapore and the rest of the region. The amount of energy saved will result in about
S$500,000 in cost savings per year.

CORPORATE GOVERNANCE
OCBC Bank is fully committed to integrity and fair dealing in all its activities, and upholds the highest standards of
corporate governance. The Bank complies with the Banking (Corporate Governance) Regulations 2005 and adopts
in all material aspects the principles laid down under the corporate governance guidelines issued by the Monetary
Authority of Singapore (“MAS”) that comprises the Singapore Exchange Securities Trading Limited (“SGX-ST”)’s Code
of Corporate Governance 2012 (the “Code”) and supplementary principles and guidelines prescribed by the MAS.
A summary of the disclosures made are consistent with its strategic resignation of senior management,
pursuant to the Bank’s corporate intent, the operating environment ensuring that principles of
governance arrangements are provided and effective internal controls, as transparency and meritocracy
on pages 78 to 80 of this Annual Report. well as capital sufficiency and are observed;
regulatory standards;
• overseeing, through the Remuneration
BOARD MATTERS Committee, the design and operation
• overseeing, through the Risk
Management Committee, the of an appropriate remuneration
PRINCIPLE 1: THE BOARD’S CONDUCT
establishment and operation of framework, and ensuring that
OF AFFAIRS
an independent risk management remuneration practices are aligned
The Board is elected by the shareholders
system for managing risks on an to and in accord with the
to supervise the management of the
enterprise-wide basis, the adequacy remuneration framework;
business and affairs of the Bank. The prime
stewardship responsibility of the Board of the risk management function
(including ensuring that it is • providing a balanced and
is to ensure the viability of the Bank and
sufficiently resourced to monitor understandable assessment of the
to ensure that it is managed in the best
risk by the various risk categories Bank’s performance, position and
interests of the shareholders as a whole
and that it has appropriate prospects, including interim and
while taking into account the interests of
independent reporting lines), and other price-sensitive public reports
other stakeholders. The Bank has a board
the quality of the risk management as well as reports to regulators;
charter approved by the Board.
processes and systems;
• ensuring that obligations to
Broadly, the responsibilities of the Board shareholders and others are
include the following: • reviewing any transaction for the
understood and met;
acquisition or disposal of assets that
• reviewing and approving overall is material to the Bank;
• maintaining records of all meetings
business strategy as well as of the Board and Board Committees,
organisation structure, as developed • ensuring that the necessary human
particularly records of discussion on
and recommended by management; resources are in place for the Bank to
key deliberations and decisions taken;
meet its objectives;
• ensuring that decisions and • identifying the key stakeholder
investments are consistent with • reviewing management performance
groups, recognising that perceptions
long-term strategic goals; and ensuring that management
affect the Bank’s reputation; and
formulates policies and processes
• ensuring that the Bank operates in to promote fair practices and high
• considering sustainability issues,
such a way as to preserve its financial standards of business conduct by staff;
e.g. environmental and social factors,
integrity and in accordance with as part of strategy formulation.
policies approved by the Board; • establishing corporate values and
standards, emphasising integrity, Board Approval
• overseeing, through the Audit honesty and proper conduct at The Bank has documented internal
Committee, the quality and integrity all times with respect to internal guidelines for matters that require Board
of the accounting and financial dealings and external transactions, approval. Matters which are specifically
reporting systems, disclosure controls including situations where there are reserved for Board approval, amongst
and procedures and internal controls; potential conflicts of interest; others, are:
and, through the Risk Management
Committee, the quality of the risk • overseeing, through the Nominating • material acquisition and disposal
management processes and systems; Committee, the appointments, of assets;
re-election and resignation of • corporate or financial restructuring; and
• providing oversight in ensuring that Directors of the Bank as well as • share issuance, dividends and other
the Bank’s risk appetite and activities the appointment, dismissal and returns to shareholders.

The Board approves transactions Mr Tan Ngiap Joo (Chairman), members are independent Directors.
exceeding certain threshold limits, while Mr Ooi Sang Kuang, Mr Lai Teck Poh, Three members, including the Chairman,
delegating authority for transactions Dr Lee Tih Shih and Mr Wee Joo Yeow. have recent and relevant accounting or
below those limits to the Board A majority of the Committee, related financial management expertise
Committees and management to i.e. Mr Tan Ngiap Joo, Mr Ooi Sang Kuang, or experience. The members have not
optimise operational efficiency. Mr Lai Teck Poh and Mr Wee Joo Yeow, been partners or directors of KPMG, the
are independent Directors. external auditors, and none of them hold
Board Committees any financial interest in KPMG.
While the Board has ultimate The Committee has written terms
responsibility for the affairs of the of reference that describe the The Audit Committee performs the
Bank, various Board committees have responsibilities of its members. functions specified in the Companies Act,
been established to assist the Board in the Code, the SGX-ST Listing Manual and
discharging its duties more effectively. The Nominating Committee plays a MAS’ corporate governance regulations
The Board committees have clearly- vital role in reinforcing the principles and guidelines.
defined terms of reference and changes of transparency and meritocracy at the
to the terms require Board approval. Bank. It plans for board succession and The Committee has written terms
The Board and its Committees maintain ensures that only the most competent of reference that describe the
records of all meetings setting out in individuals capable of contributing to the responsibilities of its members. The Board
detail key deliberations and decisions success of the organisation are appointed. approves the terms of reference of the
taken. The minutes of each Committee This includes reviewing all nominations Audit Committee. The Committee may
meeting are also circulated to members of for the appointment, election or re- meet at any time and no fewer than four
the Board who are not members of that election – as well as resignations – of times a year. It has full access to and
particular Committee. The composition Directors of the Bank and members of co-operation from management, and has
and summary terms of reference of each the Executive Committee, Remuneration the discretion to invite any Director and
of these committees are as follows. Committee, Audit Committee and executive officer to attend its meetings.
Risk Management Committee. The It has explicit authority to investigate any
• Executive Committee Nominating Committee is also charged matter within its terms of reference.
The Executive Committee comprises with determining annually whether or
Mr Ooi Sang Kuang (Chairman), not a Director is independent, capable Further information on the Audit
Dr Lee Tih Shih, Mr Quah Wee Ghee, Committee is provided under Principle 12
of carrying out the relevant duties and
Mr Tan Ngiap Joo, Mr Samuel N. Tsien on pages 74 and 75.
qualified to remain in office. In addition,
and Mr Wee Joo Yeow. A majority of it reviews nominations for and dismissals
• Remuneration Committee
the Committee, i.e. Mr Ooi Sang Kuang, or resignations of senior management
The Remuneration Committee
Mr Quah Wee Ghee, Mr Tan Ngiap Joo positions in the Bank, including the
comprises Mr Wee Joo Yeow (Chairman),
and Mr Wee Joo Yeow, are Chief Executive Officer ("CEO"), Chief
Mr Ooi Sang Kuang, Ms Christina Ong,
independent Directors. Operating Officer, Chief Financial Officer,
Mr Quah Wee Ghee and Mr Tan Ngiap
Chief Risk Officer and Chief Information
Joo. All are independent Directors
The Committee has written terms Officer (Head, Group Operations and well-versed in executive compensation
of reference that describe the Technology). It makes recommendations matters, given their extensive experience
responsibilities of its members. to the Board on all such appointments, in senior corporate positions and major
including the compensation package appointments.
The Executive Committee oversees – for offer of employment, promotion
within the parameters delegated by and cessation of employment. The The Committee has written terms of
the Board – the management of the Nominating Committee reviews reference that describe the responsibilities
business and affairs of the Bank and the obligations arising in the event of of its members.
Group. It reviews the Bank’s policies, the termination of the contracts of
principles, strategies, values, objectives service of executive Directors and The Remuneration Committee
and performance targets. These include senior management, to ensure such recommends to the Board a framework
investment and divestment policies. contracts contain fair and reasonable for determining the remuneration of
It also endorses such other matters termination clauses. executive officers, and reviews the
and initiates such special reviews and remuneration practices to ensure that they
actions as are appropriate for the • Audit Committee are aligned with the approved framework.
prudent management of the Bank. The Audit Committee comprises It is empowered to review the human
Mr Chua Kim Chiu (Chairman), resource management policies and the
• Nominating Committee Mr Lai Teck Poh, Ms Christina Ong and policies governing the compensation of
The Nominating Committee comprises Mr Tan Ngiap Joo. All the Committee executive officers of the Bank and its

subsidiaries, as well as the remuneration Mr Lai Teck Poh and Mr Chua Kim Chiu measuring, monitoring, controlling and
of senior executives and Directors. In also serve on the Audit Committee. The reporting risks on an enterprise-wide
addition, the Remuneration Committee common membership helps to facilitate basis, including ensuring the adequacy
administers the various employee share communication and foster the sharing of of risk management practices for material
ownership schemes. In its deliberations, information and knowledge between the risks. The Chief Risk Officer has a direct
the Remuneration Committee takes into two committees. reporting line to the Committee as well
account remuneration principles, practices as to the CEO.
and standards that may be specified by The Committee has written terms
MAS from time to time. of reference that describe the Activities performed by Risk Management
responsibilities of its members. Committee are also described under the
• Risk Management Committee caption “Risk Management” on pages 84
The Risk Management Committee, The Committee reviews the overall risk to 94.
which supports the Board in performing management philosophy, guidelines
its risk oversight responsibilities, and major policies for effective risk Directors’ Attendance at Board and
comprises Mr Lai Teck Poh (Chairman), management, including the risk profile, Board Committee Meetings in 2017
Mr Ooi Sang Kuang, Mr Chua Kim Chiu, risk tolerance level and risk strategy. In 2017, the Board and its committees
Mr Pramukti Surjaudaja, Mr Samuel The Committee reviews the scope, held a total of 25 meetings. The Bank’s
N. Tsien and Mr Wee Joo Yeow. All the effectiveness and objectivity of Group Constitution provides for Directors
Committee members, except Mr Samuel Risk Management and the risk reports to participate in Board and Board
N. Tsien, are non-executive Directors. that monitor and control risk exposures. Committee meetings by means of
Members of the Committee have relevant It also oversees the establishment conference telephone, video conferencing
technical financial understanding in and operation of an independent risk or audio visual equipment.
risk disciplines or business experience. management system for identifying,
Board Executive Committee Audit Committee

Name of Director Scheduled Meeting Scheduled Meeting Scheduled Meeting
Held (1) Attended Held (1) Attended Held (1) Attended
Ooi Sang Kuang 5 5 3 3 – –

Chua Kim Chiu (2) 1 1 – – 1 1
Lai Teck Poh 5 5 – – 5 5
Lee Tih Shih 5 5 3 3 – –
Christina Ong 5 5 – – 5 5
Quah Wee Ghee 5 5 3 3 – –
Pramukti Surjaudaja 5 5 – – – –
Tan Ngiap Joo 5 5 3 3 5 5
Teh Kok Peng (3) 3 3 – – – –
Samuel N. Tsien 5 5 3 3 – –
Wee Joo Yeow 5 5 3 3 – –
Nominating Committee Remuneration Committee Risk Management Committee

Ad hoc
Name of Director Scheduled Meeting Meeting Scheduled Meeting Scheduled Meeting
Held (1) Attended Attended Held (1) Attended Held (1) Attended
Ooi Sang Kuang 2 2 1 3 3 6 6

Chua Kim Chiu (2) – – – – – – –
Lai Teck Poh 2 2 1 – – 6 6
Lee Tih Shih 2 2 1 – – – –
Christina Ong – – – – – – –
Quah Wee Ghee – – – 3 3 6 6
Pramukti Surjaudaja – – – – – 6 6
Tan Ngiap Joo 2 2 1 3 3 – –
Teh Kok Peng (3) – – – 2 2 – –
Samuel N. Tsien – – – – – 6 6
Wee Joo Yeow 2 2 1 3 3 6 6
Notes:
(1)
Reflects the number of meetings held during the time the Director held office.
(2)
Appointed to the Board and Audit Committee with effect from 20 September 2017.
(3)
Stepped down from the Board and Remuneration Committee with effect from 1 July 2017.

Board Orientation and Development • Blockchain as an Enabler the Bank, not unlike many organisations
A formal appointment letter and a • Insurance Innovations in the in Singapore. The Nominating Committee
director’s handbook are provided to every Internet Era is of the view that these business
new Director. The handbook sets out, • Implementation of Financial relationships do not affect her disposition
along with other corporate information, Reporting Standard 109 to act independently.
the time commitment required and the • Cyber Security Advance Capabilities
duties and obligations of Directors, as and Cyber Risk Program for Board Dr Lee Tih Shih is not independent of a
well as relevant rules and regulations • FinTech Developments – substantial shareholder. Mr Samuel N.
such as those relating to the Banking Cloud Computing Tsien and Mr Pramukti Surjaudaja are not
Act and SGX-ST Listing Manual. The • Technological Disruption – Key Trends independent of management. Mr Samuel
Bank conducts a focused orientation and Insights N. Tsien is executive Director and CEO.
programme, presented by the CEO • Trend of Indonesian Economics Mr Pramukti Surjaudaja has an immediate
and senior management, to familiarise and Politics family member, a sister, who is chief
new Directors with its business and • Bank’s State of Readiness against executive of the Bank’s subsidiary,
governance practices. The programme Cyber Threats PT Bank OCBC NISP Tbk.
also enables the new Directors to be • Anti-Money Laundering/Countering
acquainted with senior management, the Financing of Terrorism The Board assesses the diversity of
thereby facilitating the latter’s interaction • Recent Developments in Islamic its members’ competency profiles,
with and access to the Directors. Banking in Malaysia including for gender representation, and
Arrangements are made for new • Key Capabilities of the Bank’s Data determines the collective skills required to
Directors to visit the Bank’s operations Centre and Command Centre discharge its responsibilities effectively.
and facilities. • Guiding Principles for Digitalisation Steps are taken to improve effectiveness
and Approach Adopted by the Bank where necessary. It is assessed that the
members of the Board as a group provide
On a continuing basis, the Directors
PRINCIPLE 2: BOARD COMPOSITION skills and competencies that ensure
receive appropriate development to
AND GUIDANCE the effectiveness of the Board and its
perform their roles on the Board and
The Bank has majority representation committees. These include banking,
its committees. This includes updates
of independent Directors on its Board. insurance, accounting, finance, law,
on regulatory developments and their
The Nominating Committee reviews strategy formulation, business acumen,
impact on business, new business and
the independence of Directors at least management experience, understanding
products, accounting and finance,
annually in accordance with internal due of industry and customer, familiarity with
corporate governance, risk management
diligence procedures and self-declarations regulatory requirements and knowledge
and anti-money laundering issues as
by the Directors. of risk management. Details of the
well as Fintech and cyber security,
Directors’ professional qualifications
which are provided by subject matter
An independent Director in OCBC and background can be found on
experts from within and outside the Bank is one who is independent of any pages 14 to 17.
Bank. When deciding on the scope of management, substantial shareholder,
the development to be provided, the business relationship with the Bank, and The non-executive Directors on the
knowledge and skills required to enable who has not served for more than nine Board constructively challenge and help
Directors to properly discharge their years on the Board. The Board at present develop proposals on strategy, review the
duties as members of the Board and its comprises ten Directors of whom seven, performance of management in meeting
committees are taken into account. a majority, are independent Directors. agreed goals and objectives, and monitor
They are Mr Ooi Sang Kuang, Mr Chua the reporting of performance. They meet
The Directors participate in external Kim Chiu, Mr Lai Teck Poh, Ms Christina during the year, without the presence of
courses as and when needed, including Ong, Mr Quah Wee Ghee, Mr Tan Ngiap management, to discuss the effectiveness
participation in programmes conducted Joo and Mr Wee Joo Yeow. of management.
by the Singapore Institute of Directors,
where relevant. The Bank funds the Ms Christina Ong is senior partner and Separate sessions are also arranged for
training and development programmes co-chairman of Allen & Gledhill LLP ("A&G"), the independent Directors to meet at
that it arranges for existing and new which provides legal services to and least once a year to ensure effective
Directors. There is a formal record of all receives fees from the Bank. Her interest corporate governance in managing the
attendance at training sessions. in A&G is however less than five per cent. affairs of the Board and the Bank.
She is also an independent director of
Training and updates provided to Singapore Telecommunications Limited Each year, the Board and senior
Directors in 2017 were on subjects which provides telecommunication executives meet to develop or refresh
that included: services to and receives payments from strategies for the Group.

PRINCIPLE 3: CHAIRMAN AND the appointment of new Directors, when PRINCIPLE 5: BOARD PERFORMANCE
CHIEF EXECUTIVE OFFICER necessary. When the need for a new The Board has an annual performance
The roles of the Chairman and the Director is identified, the Nominating evaluation process, carried out by the
CEO are separated, which is consistent Committee will prepare a shortlist of Nominating Committee, to assess
with the principle of instituting candidates with the appropriate profile the effectiveness of the Board, Board
an appropriate balance of power and qualities for nomination. The Committees and each Director’s
and authority. The Chairman’s Nominating Committee may engage contribution. The purpose of the
responsibilities, to name a few, external search consultants to search evaluation process is to increase the
include leading the Board to ensure its for the Director. The Board reviews the overall effectiveness of the Board.
effectiveness in all aspects of its role; recommendation of the Nominating
setting its meeting agenda; ensuring Committee and appoints the new The Directors participate in the
that Directors receive accurate, timely Director, subject to the approval of evaluation. Each Director evaluates the
and clear information; ensuring effective MAS. In accordance with the Bank’s performance of the Board and Board
communication with shareholders; Constitution, the new Director will hold Committees whilst the Chairman and
encouraging constructive relations office until the next AGM and, if eligible, Nominating Committee Chairman
between the Board and management; may then stand for re-election. evaluate the performance of each
facilitating the effective contribution Director and meet to discuss the
of non-executive Directors; ensuring The Nominating Committee reviews the matter. The assessments are made
constructive relations between board size annually and it considers the against pre-established criteria which
executive and non-executive Directors; current number of Board members to be are derived from the Board’s charter
and promoting high standards of appropriate given the size of the Group, and responsibilities. The results of the
corporate governance. The Bank does not its business complexity and the number evaluation are used constructively to
appoint a Lead Independent Director as of Board committees. discuss improvements to the Board
the Chairman is an independent Director. and ensure that each Director remains
The Bank does not, as a matter of qualified for office. The Chairman and/or
PRINCIPLE 4: BOARD MEMBERSHIP practice, appoint alternate directors. Nominating Committee Chairman
As a principle of good corporate acts on the results of the evaluation,
governance, all Directors are subject to Directors are expected to set aside and if appropriate, proposes new
re-nomination and re-election at regular adequate time for their oversight of Directors or seeks the resignation of
intervals and at least every three years. matters relating to the Bank. They must Directors, in consultation with the
The Bank’s Constitution provides for the provide declarations of any changes in Nominating Committee.
retirement of Directors by rotation and their other appointments, which are
all appointments and re-appointments disseminated to all Board members. PRINCIPLE 6: ACCESS TO INFORMATION
of Directors have to be approved by MAS. The Bank has guidelines on meeting As a general rule, Directors are provided
During the year, Dr Teh Kok Peng stepped attendance and the extent of other with complete information related to
down from the Board on 1 July 2017, appointments that a Director can agenda items about seven days before
while Mr Chua Kim Chiu was appointed to assume. The Nominating Committee, each meeting to allow adequate time for
the Board on 20 September 2017. based on the guidelines established, review. Directors are also equipped with
assesses annually each Director’s electronic tablets that allow secure access
The Nominating Committee, attendance record and degree of to Board and Board Committee meeting
responsible for board succession, participation at meetings. In respect of materials. Information provided includes
ensures that only the most competent other appointments, it takes into account background information on matters to
individuals capable of contributing - among various factors - the nature of be addressed by the Board, copies of
to the success of the organisation are an appointment (full-time or otherwise), disclosure documents, monthly internal
appointed. It reviews all nominations number of meetings to attend, financial statements, risk management
for the appointment, election or re- complexity of organisation and degree reports, operating plans, forecasts, and
election - as well as resignations - of of participation in sub-committees. reports of variances from operating plans
Directors of the Bank and members Generally, a Director who has full- and forecasts.
of the Executive Committee, time employment in any organisation
Remuneration Committee, Audit shall have appointments in no more The Board and its committees have
Committee and Risk Management than three other listed companies, unfettered access to information which
Committee. It is also charged with while a Director who has no full-time the Bank is in possession of and to the
determining annually whether or not employment shall have appointments in Bank’s senior management and company
a Director is independent, capable no more than six other listed companies. secretary. The Directors, individually or
of carrying out relevant duties and as a group, can also take independent
qualified to remain in office. Key information on the Directors’ professional advice from legal firms at the
qualifications and appointments are Bank’s expense. The role of the Company
The Nominating Committee establishes provided on pages 14 to 17 while Secretary is defined. The Company
annually the profile required of information on their shareholdings in Secretary attends all board meetings
Board members, having regard to the the Bank and its related corporations are and ensures that board procedures and
competencies and skills required, and provided in the Directors’ Statement on applicable regulations are complied with.
makes recommendations to the Board on pages 148 to 153. Under the direction of the Chairman,

the Company Secretary ensures good • e2 Power Pte Ltd • Committee member’s S$20,000
information flows within the Board • e2 Power Sendirian Berhad fee for the Nominating
and its committees and between • OCBC Bank (Malaysia) Berhad and Remuneration
senior management and non-executive • OCBC Al-Amin Bank Berhad Committees (committee
chairpersons are not
Directors, and facilitates the orientation • OCBC Wing Hang Bank Ltd
awarded these fees)
of new Directors and professional • OCBC Wing Hang Bank (China) Ltd
development of Directors, as required. • Attendance fee S$3,000
The appointment and removal of the The Bank does not provide for any per meeting
Company Secretary is considered to be termination, retirement or post-
a matter for the Board as a whole. employment benefits to executive
The resolution proposing the fee for non-
Directors or the top five key
executive Directors will be presented to
management personnel.
REMUNERATION MATTERS shareholders at the AGM in April 2018.
PRINCIPLE 8: LEVEL AND
PRINCIPLE 7: PROCEDURES FOR In the previous year, shareholders
MIX OF REMUNERATION
DEVELOPING REMUNERATION POLICIES had approved the grant of 6,000
Compensation for
The objective of the Bank’s remuneration Non-Executive Directors remuneration shares to each non-
policy is to attract, motivate, reward OCBC’s remuneration for non-executive executive Director. The remuneration
and retain talented and competent Directors is intended to attract capable shares align the interests of non-
staff globally. The Board ensures that individuals to the Board, as well as retain executive Directors with the interests
remuneration policies are in line with and motivate them in their roles as of shareholders. At the recommendation
the strategic objectives and corporate non-executive Directors. It aligns their of the Remuneration Committee, the
values of the Bank, and do not give rise interests with those of shareholders, is Board has decided to continue with
to conflicts between the objectives of competitive in the region and recognises the granting of 6,000 new ordinary
the Bank and the interests of individual individual contributions. The remuneration shares to each non-executive Director.
Directors or key executives. for non-executive Directors is subject to Any non-executive Director who has
shareholder approval at the AGM. served on the Board for less than a
The Remuneration Committee is tasked to full financial year will be awarded shares
review and recommend to the Board the The Remuneration Committee has on a pro-rated basis, according to how
general remuneration framework as well as considered market practices for non- long he has served. The resolution
the specific remuneration for each director executive director compensation. On its proposing these share grants will
and for each key executive. The composition recommendation, the Board has decided be presented to shareholders at the
and summary terms of reference of the to maintain the fee structure unchanged AGM in April 2018.
Remuneration Committee are provided from the previous year.
on pages 64 and 65. No member of the Compensation for Executive Directors
Remuneration Committee is involved in the The fee structure is as follows: The compensation for an executive
deliberations regarding any remuneration, Director is formulated and reviewed
compensation, options or any form of • Board chairman’s fee S$1,400,000 annually by the Remuneration Committee
benefits to be granted to himself. • Retainer fee S$45,000 to ensure that it is market-competitive
and that the rewards are commensurate
In its review of the Bank’s remuneration • Committee chairperson’s S$70,000 with the contributions made. The
practices, the Remuneration Committee fee for the Audit, Risk compensation package comprises basic
can seek expert advice, if necessary. Management and salary, benefits-in-kind, performance
Executive Committees bonus, incentive bonus, share options,
No consultant was engaged in 2017 to
provide remuneration advice. • Committee chairperson’s S$40,000 share awards and compensation in the
fee for the Nominating event of early termination where service
The Bank’s remuneration policy is applied and Remuneration contracts are applicable. Performance
to all OCBC overseas branches and the Committees and incentive bonuses relate directly to
following subsidiaries: the financial performance of the Group
• Committee member’s S$40,000
and the contributions of the executive
fee for the Audit, Risk
• Bank of Singapore Ltd Director. Under the OCBC Share Option
Management and
• OCBC Management Services Pte Ltd Executive Committees Scheme 2001, the guidelines on the
• OCBC Securities Pte Ltd (committee chairpersons granting of share options to the executive
• OCBC Investment Research Pte Ltd are not awarded Director are similar to those for the
• BOS Trustee Ltd these fees) executives of the Bank.

Employee Remuneration In determining the composition of the long term performance of the Bank.
The total compensation packages for compensation packages, the Bank takes This group, identified as “Material Risk
employees comprise basic salary, fixed into account the time horizon of risk Takers” comprises senior management
bonus, variable performance bonus, and includes, in the total compensation (the CEO and his direct reports), employees
allowances, deferred share awards and for executives, a significant portion of of senior vice president rank and above,
share options for eligible executives, deferred payment in the form of deferred key personnel at business units, senior
as well as benefits. Compensation is shares and share options. All awards of control staff, and employees who had
tied to the achievement of business deferred shares or grants of share options been awarded significant variable
and performance objectives based on are subject to cancellation and clawback performance bonuses. For the “Material
a balanced scorecard approach. Where if it is determined that they were granted Risk Takers” with bonuses of at least
relevant, financial measurements - on the basis of materially inaccurate S$70,000 or more, at least 40% of their
adjusted as appropriate for the various financial statements and/or that the variable performance bonuses are
types of risk (such as market, credit and employee has engaged in conduct that deferred in the form of deferred shares
operational risks) - include: results in financial loss, reputational and share options. The Board approves
harm, restatement of financial results the compensation of the CEO, Chief
• Operating efficiency measures and/or adverse changes to the Bank’s Financial Officer, Chief Operating Officer,
covering revenue, direct and allocated risk profile/rating. To ensure that its Chief Risk Officer, Chief Information
costs and operating profits, net remuneration packages are competitive, Officer (Head, Group Operations and
profits as well as efficiency indicators the Bank regularly reviews salary levels Technology) and Head, Global Treasury,
such as unit costs. and benefits packages based on market and the Remuneration Committee
• Economic efficiency measures such as data provided by recognised consultants approves the compensation of all other
cost of capital. Capital is attributed to who conduct surveys on comparative senior executives of Senior Vice President
each business based on the amount groups in the financial sector. The rank and above, as well as the top five
of risk-weighted assets used and the determination of the Bank’s variable employees who had been awarded
return on capital. bonus pool is fully discretionary and significant variable performance
• Liquidity is factored into the the factors taken into consideration bonuses who are below the rank of
performance measurement of each include the Bank’s performance, Senior Vice President.
business through the application market conditions and competitive
of liquidity premiums charged or market practices. The performance evaluation for senior
credited according to the behavioural executives in 2017 has been conducted
maturity of each type of asset and The Bank adopts a performance- in accordance with the above objectives
liability booked. driven approach to compensation. and considerations.
Compensation packages are linked to
There were no significant changes to the personal performance, the performance The remuneration practices for staff in
above measures during 2017. of the organisational function as a bargainable positions are established
whole and the overall performance of through negotiation with the Bank’s unions.
Each business unit has its own the Bank. Compensation is reviewed
performance measures that match each year based on information from Share Schemes
their functions and objectives and market surveys provided by reputable OCBC Share Option Scheme 2001
these objectives are consistent with management consultants. The OCBC Share Option Scheme 2001
the Group’s risk appetite. In the (“the Scheme”) seeks to inculcate in
determination of remuneration of As a consequence of the last financial all participants a stronger and long-
senior executives, risk and control crisis, the Financial Stability Forum term sense of identification with the
indicators as well as audit findings and (“FSF”) developed principles and OCBC Group, as well as to incentivise
compliance issues are taken into account implementation standards for Sound participants to achieve higher standards
when assessing business performance. Compensation Practices for significant of performance. It forms a portion of
Executives are remunerated based financial institutions. The Remuneration executives’ variable compensation and
on their own performance measures, Committee made changes to the Bank’s serves to align the Bank’s compensation
while taking into account market compensation structure to increase the with the sustained long-term performance
compensation data for their respective proportion of the deferred remuneration of the Bank. Group executives comprising
job roles. component for senior executives. any employee of the OCBC Group holding
The Bank’s compensation practices the rank or equivalent rank of Manager
The performance of risk and compliance are reviewed annually by McLagan and above and any Group Executive
functions is measured independently of (a business division of Aon Hewitt) Director selected by the Remuneration
the businesses they oversee. Employees which has confirmed for 2017 that the Committee, as well as non-executive
in these functions are assessed based Bank had met the FSF principles and Directors of the Group, are eligible to
on achievement related to their implementation standards. participate in the Scheme.
respective performance measures.
Market compensation data on risk and The Bank has identified a group of senior The cumulative total number of new
compliance functions is also taken into executives whose authority and actions ordinary shares to be issued by the
account for remuneration. are deemed to have a major influence on Bank in respect of options granted

under the Scheme cannot exceed 10% periods or such option periods as may the market in accordance with guidelines
of the Bank’s total number of issued be determined by the Remuneration established under the Plan.
ordinary shares. Committee. Shares granted upon the
exercising of options are allocated from The awards will lapse immediately
The acquisition price for each ordinary treasury shares or from new ordinary upon termination of employment or
share in respect of which the option shares issued by the Bank. appointment, except in the event of
is exercisable shall be determined by retirement, redundancy or death, or
the Remuneration Committee to be a All grants are subject to cancellation and where approved by the Remuneration
price equal to the average of the last clawback if it is determined that they Committee, in which case the Committee
dealt price of the shares for the five were made on the basis of materially may allow the awards to be retained and
consecutive trading days immediately inaccurate financial statements and/ vested within the relevant vesting periods
prior to the date of grant. No options or that the employee has engaged in or such periods as may be determined by
have been granted at a discount to the conduct that results in financial loss, the Remuneration Committee.
price as determined above since the reputational harm, restatement of
commencement of the Scheme. financial results and/or adverse changes All awards are subject to cancellation and
to the Bank’s risk profile/rating. clawback if it is determined that they
The validity period of the options is were granted on the basis of materially
subject to legislation applicable on OCBC Deferred Share Plan inaccurate financial statements and/or
the date of grant. Based on current The OCBC Deferred Share Plan ("the that the employee has engaged in
legislation, options granted to Plan") aims to increase the performance- conduct that results in financial loss,
Group executives are exercisable orientation and retention factor in reputational harm, restatement of
for up to ten years, while options compensation packages of executives, financial results and/or adverse changes
granted to non-executive Directors and foster an ownership culture within to the Bank’s risk profile/rating.
are exercisable for up to five years. the organisation. It also aligns the
The options may be exercised after interests of executives with the During the financial year, an aggregate of
the first anniversary of the date of sustained business performance of 6,291,099 ordinary shares were granted to
grant, in accordance with a vesting the Bank. Group executives holding the eligible executives of the Group pursuant
schedule to be determined by the rank or equivalent rank of Assistant to the Plan.
Remuneration Committee on the Manager and above, and any Group
date of grant of the respective options. Executive Director selected by the OCBC Employee Share Purchase Plan
The Committee has adopted the Remuneration Committee, are eligible The OCBC Employee Share Purchase
following vesting schedule: to participate in the Plan. In 2017, Plan ("ESPP") was implemented for all
the participants are executives of employees of the participating companies
Percentage of shares for the Bank, selected overseas locations in the Group, including executive
which an option is exercisable and subsidiaries. Directors, to inculcate in all participants
a stronger and more lasting sense of
On or before the first anniversary Nil
Share awards are granted annually to identification with the Group.
of the date of grant
eligible executives who are paid variable
After the first anniversary but on 33% performance bonuses of S$70,000 or The ESPP is a saving-based share
or before the second anniversary of more. The share awards form 20% to ownership plan to help employees own
the date of grant 40% of their total variable performance ordinary shares in the Bank through their
bonus for the year. Half (50%) of the share monthly contributions via deductions
After the second anniversary but 33%
awards will vest after two years with the from payroll and/or CPF funds. The
on or before the third anniversary
remaining 50% vesting at the end of three employees have the option to convert
of the date of grant
years in accordance with the guidelines the contributions to ordinary shares after
After the third anniversary but 34% established under the Plan. Prior to the one year or to withdraw the contributions
before the date of expiry of the vesting date, the executives will not be at any time. As a further incentive to
exercise period accorded voting rights for the shares. employees to enrol in the ESPP, the Bank
pays interest on the amounts saved at a
These options will lapse immediately Shares granted are allocated from treasury preferential interest rate.
upon termination of employment or shares or acquired from the market in
appointment, except in the event of accordance with guidelines established The duration of the offering period is
retirement, redundancy or death, or under the Plan. The unvested deferred 24 months and the share acquisition
where approved by the Remuneration share grants will be adjusted to take into price is fixed before the offering period
Committee, in which case the Committee account dividends declared by the Bank. based on the average of the last traded
may allow the options to be retained and The additional shares granted in respect prices over the five consecutive trading
exercisable within the relevant option of this adjustment may be acquired from days immediately preceding the price

fixing date. Shares granted upon number of new ordinary shares issued PRINCIPLE 9: DISCLOSURE
conversions in accordance with the rules pursuant to the Scheme, cannot exceed ON REMUNERATION
of the ESPP are allocated from treasury 15 per cent of the Bank’s total number of The following disclosures should be read
shares or from new ordinary shares issued ordinary shares. Notwithstanding in conjunction with the remuneration
issued by the Bank. the limits allowed under the relevant policies, practices and share plans as
rules, the Bank had been applying a described under Principles 7 and 8.
The aggregate number of new ordinary lower aggregate limit of five per cent
shares issued by the Bank pursuant to instead of 15 per cent as a matter of
the ESPP, together with the aggregate conservative practice.
Directors’ Remuneration in 2017
Bank
Remuneration
Director Fees (b) Shares (b) (c) Other Benefits (d) Total
S$’000 S$’000 S$’000 S$’000
Ooi Sang Kuang 1,550 81 35 1,666
Chua Kim Chiu (a) 38 23 – 61
Lai Teck Poh 235 81 – 316
Lee Tih Shih 147 81 – 228
Christina Ong 118 81 – 199
Quah Wee Ghee 199 81 – 280
Pramukti Surjaudaja 121 81 – 202
Tan Ngiap Joo 275 81 – 356
Teh Kok Peng (a) 48 40 – 88
Wee Joo Yeow 248 81 – 329
2,979 711 35 3,725
Director & CEO Salary Bonus Share Options (e) Deferred Shares Other Benefits (d) Total
S$’000 S$’000 S$’000 S$’000 S$’000 S$’000
Samuel N. Tsien 1,242 5,031 839 2,515 61 9,688
Notes:
(a)
Mr Chua Kim Chiu appointed to the Board and Audit Committee with effect from 20 September 2017. Dr Teh Kok Peng ceased to be a Board member
and Remuneration Committee member with effect from 1 July 2017.
(b)
Fees and remuneration shares for non-executive Directors are subject to approval by shareholders at the 2018 AGM.
(c)
Value of remuneration shares was estimated based on closing price of ordinary shares on 21 March 2018, i.e. S$13.42.
(d)
Non-cash component such as club and car benefits.
(e)
Option to acquire 409,643 ordinary shares at an acquisition price of S$13.34 each. Exercise period is from 22 March 2019 to 21 March 2028. The
option is valued using the Binomial valuation model.
Subsidiaries
Director Fees
S$’000
Ooi Sang Kuang 227 (f)
Lai Teck Poh 227 (g)
Quah Wee Ghee 212 (h)
Pramukti Surjaudaja 738 (i)
Tan Ngiap Joo 168 ( j)
Wee Joo Yeow 144 (k)
Notes:
(f)
Fees from OCBC Bank (Malaysia), OCBC Al-Amin Bank and OCBC Wing Hang Bank.
(g)
Fees from OCBC Bank (Malaysia), OCBC Al-Amin Bank and PT Bank OCBC NISP.
(h)
Fees from Bank of Singapore, The Great Eastern Life Assurance Co and Great Eastern General Insurance.
(i)
Fees from PT Bank OCBC NISP for being Board President Commissioner, a capacity in Indonesia with critical supervisory responsibilities
over the organisation.
(j)
Fees from OCBC Bank (Malaysia) and OCBC Al-Amin Bank for the full year, as well as fees from Banking Computer Services and BCS Information Systems
for the period that they were subsidiaries of OCBC.
(k)
Fees from Great Eastern Holdings.

Remuneration of Top Five Key business practice to do so, having taken PT Bank OCBC NISP Tbk. Her personal
Management Personnel in 2017 into account the highly competitive remuneration in 2017 exceeds S$50,000
The Code recommends the disclosure of conditions for talent in the industry. but for reasons stated above, her
the individual remuneration of the Bank’s individual remuneration is not disclosed.
top five key management personnel as Remuneration of Directors’ Apart from Ms Parwati Surjaudaja,
well as their aggregate remuneration. The Immediate Family none of the Group’s employees was an
Board considered this matter carefully The Director, Mr Pramukti Surjaudaja, has immediate family member of a Director
and has decided against such a disclosure a sister, Ms Parwati Surjaudaja, who is in 2017.
for the time being as it is not standard chief executive of the Bank’s subsidiary,
Remuneration Disclosure for Senior Management and Material Risk Takers
REMUNERATION AWARDED DURING THE FINANCIAL YEAR
Senior Management Other Material Risk Takers

Fixed remuneration Number of employees 17 274
Total fixed remuneration 28% 49%
of which: cash-based 28% 49%
of which: deferred 0% 0%
of which: shares and other share-linked instruments 0% 0%
of which: other forms of remuneration 0% 0%
Variable remuneration Number of employees 17 264
Total variable remuneration 72% 51%
of which: cash-based 43% 31%
of which: shares and other share-linked instruments 29% 20%
of which: other forms of remuneration 0% 0%
Total remuneration 100% 100%
SPECIAL PAYMENTS
Guaranteed Bonuses Sign-on Awards Severance Payments
Number of Total Number of Total Number of Total
Employees Amount (S$) Employees Amount (S$) Employees Amount (S$)
Senior management 0 0 0 0 0 0
Other material 0 0 3 96,052 0 0
risk-takers

DEFERRED REMUNERATION
of which: total outstanding

deferred and retained Total amendments Total amendments Total deferred
Total outstanding remuneration exposed to during the year due during the year due remuneration
Deferred and deferred ex post explicit and/or to ex post explicit to ex post implicit paid out in the
Retained Remuneration remuneration implicit adjustments adjustments(1) adjustments(2) financial year
Senior management 100% 100% 0% 0% 40%
Cash 0% 0% 0% 0% 0%
Shares 100% 100% 0% 0% 40%
Share-linked 0% 0% 0% 0% 0%
instruments
Other 0% 0% 0% 0% 0%
Other material risk-takers 100% 100% 0% 0% 35%
Cash 0% 0% 0% 0% 1%
Shares 100% 100% 0% 0% 34%
Share-linked 0% 0% 0% 0% 0%
instruments
Other 0% 0% 0% 0% 0%
(1)
Examples of ex post explicit adjustments include malus, clawbacks or similar reversal or downward revaluations of awards.
(2)
Examples of ex post implicit adjustments include fluctuation in the value of shares performance or performance units.
ACCOUNTABILITY PRINCIPLE 11: RISK MANAGEMENT shareholders’ interests and the Bank’s
AND INTERNAL CONTROLS assets. The Bank has in place self-
AND AUDIT The Board is responsible for the assessment processes for all business
governance of risk. It sets the tone for units to assess and manage the
PRINCIPLE 10: ACCOUNTABILITY the Bank’s risk culture and oversees, adequacy and effectiveness of their
The Board is responsible for the through the Risk Management Committee, internal controls, and their level of
provision of a balanced and the establishment and operation of an compliance with applicable rules and
understandable assessment of the independent risk management system regulations. The results of evaluations
Bank’s performance, position and for managing risks on an enterprise- are reviewed by senior management.
prospects, including interim and other wide basis, the adequacy of the risk The Board has received assurances from
price-sensitive public reports as well management function (including ensuring the CEO and Chief Financial Officer
as reports to regulators. On a regular that it is sufficiently resourced to monitor on the effectiveness of the Bank’s
basis, the Board will require key risk by the various risk categories and risk management and internal control
executives to present and explain that it has appropriate independent systems, and that the financial records
to the Board the performance and reporting lines), and the quality of the have been properly maintained and the
business plans of key business areas risk management processes and systems. financial statements give a true and
and operations of the Bank. The Board also has oversight of the fair view of the Bank’s operations
Bank’s risk appetite and risk activities to and finances.
The Board is kept apprised of material ensure that these are consistent with
changes in legislation and regulatory the Bank’s strategic intent, the operating Based on the internal controls
requirements including requirements environment and effective internal established and maintained by the
under the SGX-ST Listing Rules. The controls, as well as capital sufficiency and Group, work performed by the internal
Board will take necessary steps to regulatory standards. and external auditors, and reviews
ensure that the Bank complies with performed by management and various
these requirements. In compliance Further details on risk management Board Committees, the Board - with
with SGX-ST Listing Rule 720(1) on are described under the section on Risk the concurrence of the Audit and Risk
undertaking with regard to Directors Management Committee on page 65. Management Committees - is of the
or executive officers, the Bank has also opinion that the system of internal
procured undertakings from its Directors The Board is also responsible for controls, including financial, operational,
and key executive officers in the form ensuring that the Bank’s internal compliance and information technology
prescribed by the SGX-ST. controls adequately safeguard controls as well as risk management

systems, were adequate and effective as financial statements through briefings financial year 2017, and the breakdown
at 31 December 2017, to address the risks provided by internal or external subject of total fees paid for audit and non-audit
which the Group considers relevant and matter experts. The Audit Committee also services, are shown in the Notes to the
material to its operations. reviews significant financial reporting Financial Statements.
issues and judgements to ensure the
The system of internal controls provides integrity of the financial statements. The Audit Committee assesses the
reasonable but not absolute assurance The Committee reviews announcements quality of the external auditor before
that the Bank will not be adversely relating to financial performance. its first appointment and at least
affected by any event that could be annually thereafter. The selection
reasonably foreseen as it strives to The Audit Committee is also responsible of the current external auditor was
achieve its business objectives. However, for the review of the Bank’s whistle- made after a tender process based
the Board also notes that no system of blowing policy as well as any concerns, on the established framework for the
internal controls can provide absolute including anonymous complaints, which selection/appointment of OCBC’s
assurance in this regard, or absolute staff may in confidence raise about external auditor. This framework lists
assurance against the occurrence of possible improprieties in matters of the considerations and criteria for the
material errors, poor judgement in financial reporting or other matters. The external auditor and provides a robust
decision-making, human error, losses, Committee will ensure such concerns are tender process. Considerations include
fraud or other irregularities. independently investigated and followed having global reach as well as technical
up on. If it is found that there has been and industry expertise, skills, resources
PRINCIPLE 12: AUDIT COMMITTEE fraud, appropriate remedial action will be and reputation, and quality of
The composition and summary terms taken and the Audit Committee updated service delivery.
of reference of the Audit Committee regularly on its status. The whistle-
are provided under the caption blower’s interests will be safeguarded at Exercising oversight over the
“Audit Committee” on page 64 and all times, including a right to appeal to external audit function, the Audit
the Committee’s summary activities the Audit Committee if reprisals are taken Committee is responsible for making
are also provided in the Directors’ against him. recommendations to the Board in
Statement on page 153. relation to the appointment, re-
The Audit Committee meets at least once appointment and removal of the
In addition to the review of the Group a year with the external auditors and external auditor. The Audit Committee
Financial Statements, the Audit internal auditors in separate sessions and also considers the annual fee proposals
Committee reviews and evaluates, without the presence of management, presented by the external auditor and
with the external auditors and to consider any matters which may be reviews the scope of the audit plan, the
internal auditors, the adequacy and raised privately. In addition, the Chairman level of materiality, areas of focus and
effectiveness of the system of internal of the Audit Committee meets the head significant risks to be addressed.
controls including financial, operational, of internal audit on a regular basis to
compliance and information technology discuss the work undertaken, key findings In its recommendation on the re-
controls, and risk management policies and any other significant matters arising appointment of the external auditor, the
and systems. It reviews the scope from the Group’s operations. Formal Audit Committee considers the length
and results of the audits, the cost- reports are sent to the Audit Committee of the external auditor’s tenure and the
effectiveness of the audits and the on a regular basis. The Board is updated risk that may pose to objectivity and
independence and objectivity of the regarding these reports. independence. The Audit Committee
external auditors and internal auditors. also takes into consideration the external
When the external auditors provide The Audit Committee has received auditor’s compliance with SGX-ST Listing
non-audit services to the Bank, the the requisite disclosures from the Rules which require the lead engagement
Committee keeps the nature, extent external auditors evidencing their partner to be rotated every five years.
and costs of such services under review. independence. It is satisfied that the
This is to balance the objectivity of the financial, professional and business The Audit Committee is responsible for
external auditors against their ability to relationships between the Group and monitoring the performance, objectivity
provide value-for-money services. The the external auditors will not prejudice and independence of the external auditor.
Audit Committee members keep abreast the independence and objectivity of the In its evaluation process, the Audit
of changes to accounting standards and external auditors. The aggregate amount Committee takes into consideration
issues which have a direct impact on of fees paid to the external auditors for the following:

• the experience and expertise To reinforce the Audit Committee’s Valuation of financial instruments
of senior members of the effectiveness and enhance the quality of held at fair value
engagement team; the audit, the Audit Committee meets The Audit Committee reviewed
• the audit plan agreed with the regularly with the external auditor. management’s valuation of financial
external auditor, the areas of audit The external auditor discusses its audit instruments framework and their
focus and the external auditor’s plan with the Audit Committee and control, monitoring and issue escalation
approach to materiality; presents its engagement teams and processes. In addition, the Committee
• the quality of reports and findings its audit fee proposals. It reports to the reviewed both Group Audit’s and the
presented by the external auditor; Audit Committee on audit focus areas, external auditor‘s assessment of the
• the external auditor’s presentation the support rendered by management, controls over valuation which included
of its Audit Quality Framework and key audit findings, quantitative and independent verification of price and
its confirmation of independence qualitative aspects of financial statement validation of valuation models.
pursuant to its policies and processes disclosures, any unadjusted audit
for maintaining independence differences (or review differences in Valuation of insurance contract liabilities
and objectivity; the case of a half-yearly or a quarterly The Audit Committee reviewed the
• the external auditor’s report to the review) and any other matters relevant approach and methodology applied
Audit Committee on main findings to its engagement. Discussions may be to the valuation of insurance contract
on audit quality reviews of the held privately without the presence of liabilities of Great Eastern Holdings Ltd in
Bank’s audit; their review of Great Eastern’s financial
management. The external auditor also
• the key highlights or findings on results together with the Group’s
discusses with the Audit Committee key
financial performance. In considering
the external auditor’s quality changes to regulatory requirements and
the valuation of insurance contract
control systems by audit oversight reporting as well as developments in
liabilities, the Committee considered
bodies and, where relevant, the accounting standards.
the external auditor’s independent
appropriate steps taken by the
assessment of the valuation methodology
external auditor; and In the review of the 2017 financial
and assumptions adopted by Great
• feedback through an annual statements, the Audit Committee
Eastern and its subsidiaries.
evaluation exercise from senior discussed with management the
management across geographical accounting principles applied and
Impairment of goodwill
regions to gather internal perceptions significant judgements affecting the
The Audit Committee reviewed
as to the knowledge, competence, financial statements. Matters raised by management’s goodwill impairment
independence, efficiency Group Audit and the external auditor in testing methodology and results,
and effectiveness - as well as respect of risk management, accounting including the appropriateness of the
communications by and with - and internal controls over financial cash flow forecasts and discount rates
the external auditor. reporting were also reviewed. The used. The Committee also considered
following key audit matters highlighted the external auditor’s assessment of the
As part of its assurance process on the in the Independent Auditors’ Report on methodology and testing results.
objectivity and independence of the pages 154 to 156 of the Annual Report
external auditor, the Audit Committee were discussed with management and The Audit Committee believes that the
has in place a policy that lists the non- the external auditor: financial statements are fairly presented
audit services which may not be provided in conformity with the relevant Singapore
by external auditors and sets out the Impairment of loans and bills receivable Financial Reporting Standards in all
circumstances in which the external The Audit Committee reviewed material aspects, based on its review and
auditor may be permitted to undertake management’s computation and discussions with management and the
non-audit services. Permitted non-audit justification of portfolio allowances in external auditors.
services exceeding S$250,000 require accordance with approved methodology
the approval of the Audit Committee and guiding principles. The Committee Where appropriate, the Audit Committee
before the auditor can be engaged. In also considered management’s has adopted relevant best practices
addition, the Audit Committee reviews assessment of specific allowances. set out in the Guidebook for Audit
reports on non-audit services undertaken The adequacy of specific allowances Committees in Singapore.
by the external auditor to satisfy itself set aside for key loan accounts was also
as to the nature of non-audit services discussed with the external auditor. PRINCIPLE 13: INTERNAL AUDIT
being provided and the fees incurred. Additionally, the Audit Committee also The Audit Committee approves the
The nature of the non-audit services considered the input from Group Audit’s terms of reference of internal audit
provided during the financial year ended independent assessment of the Group’s (Group Audit) and reviews the adequacy
31 December 2017 is shown in the Notes credit portfolio quality and credit risk and effectiveness of the internal audit
to the Financial Statements. management process. function, at least annually. In line with

leading practice, Group Audit’s mission in a timely manner and for outstanding appointed as proxies to participate at
statement and charter requires it to exceptions or recommendations to general meetings.
provide independent and reasonable, but be closely monitored. Group Audit
not absolute, assurance that the Banking is staffed with individuals with the PRINCIPLE 15: COMMUNICATION
Group’s governance, risk management relevant qualifications and experience. WITH SHAREHOLDERS
and internal control processes – as It reports functionally to the Audit The Bank has an investor relations
designed and implemented by senior Committee and administratively to policy approved by the Board. OCBC
management – are adequate and the CEO, has unfettered access to the Bank recognises the importance of
effective. Group Audit reports on the Audit Committee, Board and senior communicating regularly and effectively
adequacy of the system of internal management, and has the right to seek with its shareholders so that they
controls to the Audit Committee and information and explanations. Currently, can better understand its operations,
management, but does not form any part the number of internal audit staff in the strategies and directions. One of the
of the system of internal controls. Group Group is 299. The division is organised key roles of the Group’s Corporate
Audit meets or exceeds the International into departments that are aligned with Communications and Investor Relations
Standards for the Professional Practice the structure of the Group. The Audit units is to keep the market and investors
of Internal Auditing of The Institute of Committee approves the appointment, apprised of the Group’s major corporate
Internal Auditors. resignation, removal and remuneration developments and financial performance
of the Head of Group Audit. through regular media releases, briefings
Group Audit adopts a risk-based approach and meetings with the media, analysts
where audit work is prioritised and scoped and fund managers. Live webcasts of the
according to an assessment of current
SHAREHOLDER RIGHTS Bank’s half-year and full-year financial
and emerging risks, including financial, AND RESPONSIBILITIES results presentation are available for
operational, technology, compliance and viewing on the Bank’s corporate website.
strategic risks. The work undertaken by PRINCIPLE 14: SHAREHOLDER RIGHTS In 2017, OCBC Bank hosted close to 500
Group Audit involves the assessment of At the AGM, the Group’s financial meetings and conference calls with the
the adequacy and effectiveness of the performance for the preceding year is investment community. In addition,
Group’s governance, risk management and presented to shareholders. shareholders and the public can access
internal control processes in meeting its the Group’s media releases, financial
strategic objectives and operating within Shareholders are given the opportunity results, presentation materials used at
the risk appetite established. In addition, to participate effectively at the general briefings and other corporate information
Group Audit provides an independent meetings of OCBC Bank, where they can via the Bank’s website. Material
assessment of the Group’s credit portfolio ask questions and communicate their information is also announced through
quality and credit risk management views. They are allowed to vote in person the stock exchange.
process. Without assuming management or by proxy. The Bank’s Constitution
responsibility, Group Audit may provide currently allows a shareholder to appoint Investors can submit feedback and
consultative services to line management up to two proxies to attend, speak and queries to the Bank’s Investor Relations
on certain business initiatives as well as vote in his place at general meetings. Unit through the contact details provided
system developments and enhancements Under the new multiple proxies regime on the corporate website.
where the objective is to add value and introduced pursuant to the Companies
improve governance, risk management (Amendment) Act 2014, “relevant PRINCIPLE 16: CONDUCT OF
and controls. intermediaries” such as banks, capital SHAREHOLDER MEETINGS
markets services licence holders which The Directors, external auditors and senior
The Audit Committee is responsible provide custodial services for securities management are present at the AGM to
for the adequacy of the internal audit and the Central Provident Fund (“CPF”) address any relevant queries raised by
function, its resources and its standing. Board are allowed to appoint more than shareholders. Independent scrutineers
The Committee ensures that processes two proxies to attend, speak and vote at are also present at the AGM to review the
are in place for recommendations raised general meetings. This will enable indirect voting process and address shareholders’
in internal audit reports to be dealt with investors, including CPF investors, to be queries on the voting procedures.

To ensure authenticity of shareholder ETHICAL STANDARDS The Bank has a suite of policies in
identity and due to other related security place for proper governance and
issues, the Bank currently does not allow management that staff have to comply
The Bank has adopted the SGX-ST
voting in absentia by mail, email or fax. with. All policies, including those
Listing Manual’s guidelines on dealings
The Bank conducts voting by poll for related to vendor management and
in securities and has a policy against
all resolutions proposed at the general procurement, are subject to the Bank’s
insider trading. Directors and officers are
meetings, for greater transparency in the risk management and internal control
prohibited from dealing in the securities
voting process. Following the meetings, systems and processes, including
of the Bank and its listed subsidiary,
it announces the detailed results of the management self-assessment and
Great Eastern Holdings Limited (“GEH”)
votes, showing the number of votes cast independent audits.
during the period commencing two
for and against each resolution and the
weeks before the announcement of the
respective percentages. The Bank also has a policy to manage
Bank’s and GEH’s quarterly or half-yearly
or eliminate any actual or potential
financial results, and one month before
The Bank provides for separate resolutions conflicts of interest which may impact
the announcement of year-end results
at general meetings on each substantially the impartiality of research analyses
(the “black-out” period) and any time they
separate issue. It does not “bundle” or research reports issued by research
are in possession of unpublished material
resolutions, unless the resolutions are analysts in OCBC Bank or its financial
price-sensitive information. The Bank will
interdependent and linked so as to form subsidiaries. These include prohibitions
one significant proposal. notify Directors and employees of the
on business units attempting to
commencement date for each black-
influence research analyses or
The Company Secretary prepares out period. The policy also states that
recommendations by research analysts,
minutes of general meetings, which employees are not to deal in the Bank’s
as well as on securities trading by staff
reflect responses from the Board and securities on short-term considerations.
who receive information on research
management to queries and comments In addition, employees are instructed analyses or recommendations in
from shareholders. The minutes are made to conduct all their personal securities unissued research reports.
available on the Bank’s website. transactions through the Group’s
stockbroking subsidiary.
PRINCIPLE 17: RELATED
PARTY TRANSACTIONS The Bank’s insider trading policy also
OCBC Bank has established policies includes instructions pertaining to
and procedures on related party dealings in the listed securities of
transactions. These include definitions customers of the Group.
of relatedness, limits applied, terms
of transactions, and the authorities The Bank has a code of conduct
governing and procedures for approving that applies to all employees and
and monitoring the transactions. The reinforces the core values expected of
Audit Committee reviews material employees. The code covers all aspects
related party and interested person of the business operations of the
transactions and keeps the Board Bank and sets out principles to guide
informed of such transactions, if any. employees in carrying out their duties
Measures are taken to ensure that terms and responsibilities while adhering
and conditions for related party lendings to the highest standards of personal
are not more favourable than those and corporate integrity. Employees are
granted to non-related obligors under required to observe and comply with
similar circumstances. The Bank also laws and regulations as well as company
complies with the SGX-ST Listing Manual policies, along with the ABS Code of
on interested person transactions. Conduct for Banks and Bank Staff.

SUMMARY OF DISCLOSURES
Express disclosure requirements in the Guidelines on Corporate Governance for Financial Holding Companies, Banks,
Direct Insurers, Reinsurers and Captive Insurers which are incorporated in Singapore (which comprises the Code of
Corporate Governance 2012), and the applicable disclosures pursuant to the Corporate Governance Disclosure Guide
issued by the Singapore Exchange on 29 January 2015.
PAGE REFERENCE IN
PRINCIPLE AND GUIDELINES OCBC ANNUAL REPORT 2017
Guideline 1.3
Delegation of authority, by the Board to any Board committee, to make decisions on Pages 63 to 65
certain Board matters.
Guideline 1.4
The number of meetings of the Board and Board committees held in the year, as well as Page 65
the attendance of every Board member at these meetings.
Guideline 1.5
Pages 63 and 64
The type of material transactions that require Board approval under guidelines.
Guideline 1.6
Page 66
The induction, orientation and training provided to new and existing directors.
Guideline 1.16
An assessment of how these programmes meet the requirements as set out by the Nominating
Page 66
Committee to equip the Board and the respective Board committees with relevant knowledge
and skills in order to perform their roles effectively.
Guideline 2.1
Page 66
Compliance with the guideline on proportion of independent directors on the Board.
Guideline 2.3
The Board should identify in the Company’s Annual Report each director it considers to be
independent. Where the Board considers a director to be independent in spite of the existence of
Page 66
a relationship as stated in the Code that would otherwise deem a director not to be independent,
the nature of the director’s relationship and the reasons for considering him/her as independent
should be disclosed.
Guideline 2.4
Where the Board considers an independent director, who has served on the Board for more
Not Applicable
than nine years from the date of his/her first appointment, to be independent, the reasons for
considering him/her as independent should be disclosed.
Guideline 2.6
(a) The Board’s policy with regard to diversity in identifying director nominees
(b) Whether current composition of the Board provides diversity on skills, experience, gender
Pages 66 and 67
and knowledge of the Company, and elaborate with numerical data where appropriate
(c) Steps that the Board has taken to achieve the balance and diversity necessary to maximise
its effectiveness.
Guideline 2.13
Names of the members of the Executive Committee and the key terms of reference of the Page 64
Executive Committee, explaining its role and the authority delegated to it by the Board.
Guideline 3.1
Not Applicable
Relationship between the Chairman and the CEO where they are immediate family members.
Guideline 4.1
Names of the members of the Nominating Committee and the key terms of reference of the Pages 64 and 67
Nominating Committee, explaining its role and the authority delegated to it by the Board.

PAGE REFERENCE IN
Guideline 4.4
(a) The maximum number of listed company Board representations which directors may
Page 67
hold should be disclosed
(b) Specific considerations in deciding on the capacity of directors.
Guideline 4.6
Process for the selection, appointment and re-appointment of new directors to the Board, Page 67
including the search and nomination process.
Guideline 4.7
Key information regarding directors, including which directors are executive, non-executive or Pages 14 to 17, and 66
considered by the Nominating Committee to be independent.
Guideline 4.13
Page 67
Resignation of key appointment holders.
Guideline 4.14
Deviation and explanation for the deviation from the internal guidelines on time commitment Not Applicable
referred to in Guidelines 4.4 and 4.10.
Guideline 5.1
The Board should state in the Company’s Annual Report how assessment of the Board, its Board
committees and each director has been conducted. If an external facilitator has been used, the
Page 67
Board should disclose in the Company’s Annual Report whether the external facilitator has any
other connection with the Company or any of its directors. This assessment process should be
disclosed in the Company’s Annual Report.
Guideline 6.1
Types of information which the Company provides to independent directors to enable them to
Pages 67, 68, and 73 to 76
understand its business, the business and financial environment as well as the risks faced by the
Company, and how frequent is such information provided.
Guideline 7.1
Names of the members of the Remuneration Committee and the key terms of reference of the Pages 64 and 65
Remuneration Committee, explaining its role and the authority delegated to it by the Board.
Guideline 7.3
Names and firms of the remuneration consultants (if any) should be disclosed in the annual
Not Applicable
remuneration report, including a statement on whether the remuneration consultants have any
relationships with the Company.
Principle 9
Clear disclosure of remuneration policies, level and mix of remuneration, and procedure for Pages 68, 69, 72 and 73
setting remuneration.
Guideline 9.1 For CEO and Management:
Remuneration of directors, the CEO and at least the top five key management personnel (who are Pages 68, 69, 71 to 73
not also directors or the CEO) of the Company. The annual remuneration report should include
the aggregate amount of any termination, retirement and post-employment benefits that may be For the Company’s
granted to directors, the CEO and the top five key management personnel (who are not directors other directors:
or the CEO). Pages 68 and 71
Guideline 9.2
Fully disclose the remuneration of each individual director and the CEO on a named basis. There
will be a breakdown (in percentage or dollar terms) of each director’s and the CEO’s remuneration Page 71
earned through base/fixed salary, variable or performance-related income/bonuses, benefits in
kind, stock options granted, share-based incentives and awards, and other long-term incentives.
Guideline 9.3
Name and disclose the remuneration of at least the top five key management personnel
(who are not directors or the CEO) in bands of S$250,000. There will be a breakdown
(in percentage or dollar terms) of each key management personnel’s remuneration earned
through base/fixed salary, variable or performance-related income/bonus, benefits in kind,
Page 72
stock options granted, share-based incentives and awards, and the other long-term incentives.
In addition, the Company should disclose in aggregate the total remuneration paid to the
top five key management personnel (who are not directors or the CEO). As best practice,
companies are also encouraged to fully disclose the remuneration of the said top five key
management personnel.

PAGE REFERENCE IN
Guideline 9.4
Details of the remuneration of employees who are immediate family members of a director
or the CEO, and whose remuneration exceeds S$50,000 during the year. This will be done on Page 72
a named basis with clear indication of the employee’s relationship with the relevant director
or the CEO. Disclosure of remuneration should be in incremental bands of S$50,000.
Guideline 9.5
Pages 69 to 71
Details and important terms of employee share schemes.
Guideline 9.6
For greater transparency, companies should disclose more information on the link between
remuneration paid to the executive directors and key management personnel, and performance.
The annual remuneration report should set out a description of performance conditions to Pages 68, 69, 72 and 73
which entitlement to short-term and long-term incentive schemes are subject, an explanation on
why such performance conditions were chosen, and a statement of whether such performance
conditions are met.
Guideline 11.3
The Board should comment on the adequacy and effectiveness of the internal controls, including
financial, operational, compliance and information technology controls, and risk management
systems. The commentary should include information needed by stakeholders to make an
informed assessment of the Company’s internal control and risk management systems. The Board Pages 73 and 74
should also comment on whether it has received assurance from the CEO and the CFO: (a) that
the financial records have been properly maintained and the financial statements give true and
fair view of the Company’s operations and finances; and (b) regarding the effectiveness of the
Company’s risk management and internal control systems.
Guideline 11.14
Names of the members of the Risk Management Committee and the key terms of reference
Page 65
of the Risk Management Committee, explaining its role and the authority delegated to it by
the Board.
Guideline 12.1
Names of the members of the Audit Committee and the key terms of reference of the Pages 64, 74 and 75
Audit Committee, explaining its role and the authority delegated to it by the Board.
Guideline 12.6
Aggregate amount of fees paid to the external auditor for that financial year, and
Pages 75 and 181
breakdown of fees paid in total for audit and non-audit services respectively, or an
appropriate negative statement.
Guideline 12.7
Page 74
The existence of a whistle-blowing policy should be disclosed in the Company’s Annual Report.
Guideline 12.8
Summary of the Audit Committee’s activities and measures taken to keep abreast of changes Pages 74 and 75
to accounting standards and issues which have a direct impact on financial statements.
Guideline 13.1
Pages 75 and 76
Whether the Company has an internal audit function.
Guideline 15.4
The steps the Board has taken to solicit and understand the views of the shareholders, Page 76
e.g. through analysts briefings, investor roadshows or Investors’ Day briefings.
Guideline 15.5
Not Applicable
Where dividends are not paid, companies should disclose their reasons.
Guideline 17.4
Page 77
Material related party transactions.

ADDITIONAL INFORMATION REQUIRED
UNDER THE SGX-ST LISTING MANUAL
1. INTERESTED PERSON TRANSACTIONS
Interested person transactions carried out during the financial year under review:
Aggregate value of all interested Aggregate value of all interested

person transactions during the person transactions conducted
financial year under review during the financial year
(excluding transactions less than under review under shareholders’
S$100,000 and transactions mandate pursuant to Rule 920
conducted under shareholders’ (excluding transactions less
mandate pursuant to Rule 920) than S$100,000)
2017 2017
Name of interested person S$’000 S$’000
Dasar Sentral (M) Sdn Bhd, a company wholly-owned by 5,125 –

Lee Rubber Company (Pte) Limited, an associate of
Dr Lee Tih Shih, director of OCBC Bank
- Lease of premises at Wisma Lee Rubber,
Kuala Lumpur to subsidiaries of OCBC Bank
Lee Rubber Company (Pte) Limited 6,709 –

- Lease of premises at OCBC Centre, Singapore
from a subsidiary of OCBC Bank
2. MATERIAL CONTRACTS
Since the end of the previous financial year, no material contract involving the interest of any Director or controlling shareholder
of the Bank has been entered into by the Bank or any of its subsidiary companies, and no such contract subsisted as at
31 December 2017.
3. APPOINTMENT OF AUDITORS
The Group has complied with Rules 712, 715 and 716 of the Listing Manual issued by Singapore Exchange Securities Trading
Limited in relation to its auditors.

CAPITAL MANAGEMENT
(This section forms an integral part of OCBC’s audited financial statements)
CAPITAL POLICY easy deployment across the Group. required to meet minimum Common
Whilst the transfer of capital resources Equity Tier 1 (“CET1”), Tier 1, and total
The key objective of the Group’s within the Group is generally subject to capital adequacy ratios of 6.5%, 8.0%,
capital management policy is to regulations in local jurisdictions, where and 10.0%, respectively, in 2017.
maintain a strong capital position to applicable, OCBC has not faced significant
support business growth and strategic impediments on the flow of capital To ensure that banks build up adequate
investments, and to sustain investor, within the Group. capital buffer outside periods of stress,
depositor, customer and market a Capital Conservation Buffer (“CCB”) of
2.5 percentage points above the
confidence. In line with this, OCBC DIVIDEND minimum capital adequacy requirements
targets a minimum credit rating of
“A” and ensures that its capital ratios was introduced. The CCB is to be
Our dividend policy aims to provide
are comfortably above the regulatory maintained in the form of CET1 capital,
shareholders with a predictable and
minima, while balancing shareholders’ and will begin at 0.625% on 1 January
sustainable dividend return, payable on at
desire for sustainable returns and high 2016, and increase by 0.625 percentage
least a half-yearly basis. For the financial
standards of prudence. OCBC actively point on 1 January each year, to reach
year ended 31 December 2017, the Board
manages its capital composition to of Directors has recommended a final 2.5% on 1 January 2019. Including the
achieve an efficient mix of different dividend of 19 cents per share. This brings CCB, Singapore-incorporated banks will
capital instruments in order to optimise the full year 2017 dividend to 37 cents be required to meet CET1 CAR, Tier 1 CAR
its overall cost of capital. per share, or an estimated total dividend and total CAR of 9.0%, 10.5% and 12.5%,
payout of S$1,550 million, representing respectively, from 1 January 2019.
CAPITAL MONITORING 37% of the Group’s core net profit of

In addition, OCBC will be subject to a
S$4,146 million (2016: total dividend
AND PLANNING payout of S$1,507 million, representing Countercyclical Buffer requirement if
43% of the Group’s core net profit of this buffer is applied by regulators in
OCBC Group’s capital is closely monitored S$3,473 million). countries which the Group has credit
and actively managed to ensure that exposures to. Generally in the range of
there is sufficient capital to support 0% to 2.5% of risk-weighted assets, the
business growth, and to pursue SHARE BUYBACK AND Countercyclical Buffer is not an ongoing
strategic business and investment TREASURY SHARES requirement but it may be applied by
opportunities that will create value regulators to limit excessive credit growth
for our stakeholders, while taking into Shares purchased under the share in their economy.
consideration the Group’s risk appetite. buyback programme are held as treasury
OCBC Group’s internal capital adequacy shares. These are recorded as a deduction The table below shows the composition
assessment process (“ICAAP”) involves a against share capital, and may be of the Group’s regulatory capital
comprehensive assessment of all material subsequently cancelled, sold or used to and its capital adequacy ratios as of
risks that the Group is exposed to and meet delivery obligations under employee 31 December 2017 based on MAS’
an evaluation of the adequacy of the share schemes. During the financial transitional Basel III rules for 2017. The
Group’s capital in relation to those risks. year ended 31 December 2017, the Bank capital adequacy ratios were determined
This includes an annual capital planning purchased 20.6 million ordinary shares for in accordance with the requirements
exercise to forecast capital demands S$224 million as part of its share buyback of MAS Notice 637, which included
and assess the Group’s capital adequacy programme, while 24.5 million treasury the definitions for CET1, Tier 1 and
over a 3-year period. This process takes shares were delivered to meet obligations Tier 2 capital, the required regulatory
into consideration OCBC’s business under its employee share schemes. adjustments against capital (including
strategy, operating environment, goodwill, intangible assets, deferred tax
target capital ratios and composition, assets and investments in unconsolidated
as well as expectations of its various
CAPITAL financial institutions in which the
stakeholders. In addition, capital stress ADEQUACY RATIOS Bank holds a major stake), and the
tests are conducted to understand the methodologies available for computing
sensitivity of the key assumptions in the On 14 September 2012, the Monetary risk-weighted assets. Some of OCBC’s
capital plan to the effects of plausible Authority of Singapore (“MAS”) revised existing Additional Tier 1 and Tier 2
stress scenarios, and to evaluate how the the MAS Notice 637 to implement the capital instruments were issued under
Group can continue to maintain adequate Basel III capital adequacy framework for the Basel II capital adequacy framework.
capital under such scenarios. Singapore. The Basel III capital standards These capital instruments did not
came into effect on 1 January 2013 contain provisions to require them to be
Within OCBC Group, excess capital will and are being progressively phased in written off or converted into ordinary
be centralised as far as possible at the on 1 January each year, from 2013 to shares if the Bank was determined by the
parent (i.e. OCBC Bank) level to ensure 2019. Singapore-incorporated banks are Monetary Authority of Singapore (“MAS”)

to be non-viable, and will be gradually phased out under MAS’ Basel III transitional rules. As per the requirements of MAS Notice 637,
OCBC’s insurance subsidiaries were not consolidated for the computation of the capital adequacy ratios, i.e. capital investments in
these insurance subsidiaries were deducted from OCBC’s capital and their assets were excluded from the computation of OCBC’s
risk-weighted assets.
A description of the key terms and conditions of the regulatory capital instruments can be found in Notes 13, 16 and 21 of the
financial statements, and the approaches adopted by OCBC for the computation of risk-weighted assets can be found in the
“Pillar 3 Disclosures” chapter.
Basel III Basel III

$ million 2017 2016
Tier 1 Capital
Ordinary shares 14,136 14,107
Disclosed reserves/others 18,130 21,586
Regulatory adjustments (5,359) (6,550)
Common Equity Tier 1 Capital 26,907 29,143
Additional Tier 1 capital 2,985 3,109

Regulatory adjustments (932) (2,284)
Tier 1 Capital 28,960 29,968
Tier 2 capital 4,673 6,087

Regulatory adjustments (408) (2,080)
Total Eligible Capital 33,225 33,975
Credit 163,361 164,320

Market 16,130 20,186
Operational 13,591 13,257
Risk Weighted Assets 193,082 197,763
Capital Adequacy Ratios

Common Equity Tier 1 13.9% 14.7%
Tier 1 14.9% 15.1%
Total 17.2% 17.1%
The Group’s fully phased-in CET1 CAR as of 31 December 2017 based on MAS Notice 637 rules effective 31 December 2017 was 13.1%.
OCBC’s banking and insurance subsidiaries are subject to capital adequacy requirements of the jurisdiction in which they operate.
As of 31 December 2017, the capital adequacy ratios of these subsidiaries were above their respective local requirements.
DISCLOSURES REQUIRED UNDER PART XIA OF MAS NOTICE 637 ‘NOTICE OF RISK BASED
CAPITAL ADEQUACY REQUIREMENTS FOR BANKS INCORPORATED IN SINGAPORE’
(This section does not form part of OCBC’s audited financial statements)
The Basel Committee has developed an indicator-based measurement approach to identify Global Systemically Important Bank
(“G-SIB”) and determine the higher loss absorbency requirements for banks classified as G-SIBs. While OCBC is not a G-SIB, it is required
under MAS Notice 637 to disclose the indicators which can be found on the Bank’s Investor Relations website (http://www.ocbc.com/
group/investors/Cap_and_Reg_Disclosures.html).

RISK MANAGEMENT
KEY HIGHLIGHTS IN 2017 corporate and institutional borrowers on • Enhanced our policy to strengthen
group-wide basis in 2017. Transactions the management of cyber risks and
In 2017, global and regional activity with high ESG or reputational risk are improve cyber resilience.
gathered strength and growth became escalated to the Reputational Risk Review • Participated in the industry-wide
more broad-based. The threat of trade Group for clearance. exercise conducted by the Association
protectionism faded while geopolitical of Banks in Singapore (“ABS”) where
posturing in Asia was well managed. During the year, among the initiatives the Bank exercised its emergency and
Consequently, demand for financial undertaken to enhance risk management recovery responses to terrorism and
services in our key markets of Singapore, capabilities and/or to meet regulatory cyber-attacks.
Malaysia, Indonesia and Greater China requirements, the key ones are: • Made improvements in our physical
• Established a new Group Data security infrastructure and controls at
picked up. While we responded proactively
Management Office reporting key office buildings.
to the opportunities arising from more
rapid trade expansion and the revival of into Group Risk Management
Division (“GRM”). This is part of our In recognition of our achievements
investor and consumer confidence, we
effort to enhance group-wide risk in capability building and operational
stayed disciplined in our risk management
data aggregation and reporting risk management, we received the
as we supported our three core business
capabilities to comply with the “Achievement in Operational Risk
pillars – Banking, Wealth Management
requirements stated in the Basel Management Award” in The Asian Banker
and Insurance. We remained vigilant
Committee on Banking Supervision Risk Management Awards 2017; this is our
to ensure that our asset quality and
Regulation No. 239 (“BCBS 239”). third consecutive award since 2015.
coverage ratios were maintained at
acceptable levels. • Completed the development of
reporting capabilities in overseas Recognising the dynamic and complex
locations through enhancements of evolution of money laundering tactics,
The momentum of growth in the global
our Asset and Liability Management we are among the first Singapore banks
and regional economies is expected to be
(“ALM”) risk system. This is to comply to tap artificial intelligence (“AI”) and
carried over into 2018, though at a more
with the regulation on Group Net machine learning to enhance the detection
moderate pace. Financial conditions are
Stable Funding Ratio (“NSFR”) which of suspicious activity. We have successfully
likely to be less benign and with greater
is effective from January 2018. piloted the use of fintech solutions to
uncertainties emerging as financial
supplement and optimise our existing
markets and asset prices adjust to • Started capabilities building for
transaction monitoring system. This is
possible surprises from higher inflation, regulatory reporting of group-wide
expected to significantly increase our
a faster pace of monetary normalisation Interest Rate Risk in the Banking Book
operational efficiency and accuracy in
and rise in interest rates. The threat of (“IRRBB”) which will take effect from
the detection of suspicious transactions.
trade protectionism could re-emerge December 2018.
to undermine global trade and set back • Adopted the Advanced Internal
global growth. We remain watchful of Ratings-Based approach for RISK MANAGEMENT
the possible large swings in liquidity margin lending exposures in IN OCBC GROUP
conditions and prices of financial assets Bank of Singapore.
as well as geopolitical risks. We will • Adopted the Foundation Internal- Effective risk management is critical
remain prudent and focus on our long- Ratings Based approach for sovereign to the long-term sustainability of
term strategic priorities. With our strong exposures in OCBC Group (excluding the Group. To achieve this, we have
funding and capital position, we are Bank OCBC NISP). identified the following key high-level
well placed to serve our customers and risk management fundamentals to forge
capture new opportunities as they arise. In 2017, we saw an increase in security a common approach to managing risk
threats including malicious cyber threats at the enterprise level.
Recognising the importance of promoting across the globe causing disruptions to
long-term sustainable development, businesses and facilities. In response, • Risk Culture – The Board of Directors
the Board has approved material these are several of the key initiatives (“Board”) and top management set
Environmental, Social and Governance undertaken by us: the tone for a strong risk culture,
(“ESG”) factors of which Responsible • Embarked on more extensive supported by a robust internal control
Financing is one. We have integrated ESG cyber risk awareness programmes environment throughout the Group.
considerations into our credit and risk to improve staff vigilance across All customer-facing business units,
evaluation process for all new and existing the Group. product teams, independent

functional risk management units risk and control measures through control oversight function that supports
and other support units such a Management Control Oversight the Group’s business development within
as Operations and Technology Rating (“MCOR”). a prudent, consistent and effective risk
are actively involved in the risk management framework and governance
management process. Our banking subsidiaries are required structure. GRM also establishes relevant
to implement risk management policies risk management frameworks, policies
•
Risk Appetite – The Board sets the that conform to Group risk standards or and procedures, risk measurements and
Group’s risk appetite, which defines to adopt stricter local regulations where methodologies. Various risk reports,
the level and nature of risks that the applicable. The approving authority and including key stress test results and
Group takes. Risk-taking decisions are limit structures of our subsidiaries are action plans, are submitted regularly
aligned with strategic business goals consistent with those of the Group, which to senior management, the BRMC and
and risk-adjusted return expectations. are designed to ensure proper ownership the Board to apprise them of the Group’s
Portfolio risk limits are cascaded and accountability. risk profile.
from the risk appetite and are used
to establish business-operating Great Eastern Holdings and Bank GRM also reviews and monitors the
boundaries. OCBC NISP are listed companies that Group’s risk profiles and portfolio
publish their own annual reports concentrations and highlights any
•
Risk Management Frameworks – which contain information on their significant vulnerabilities and risk issues
The overarching risk management risk management frameworks and to the respective risk management
frameworks are supported by policies, practices (for information on GEH’s committees. Our risk management and
methodologies, tools, processes risk management, refer to Note 39 in reporting systems are designed to ensure
and controls across the various risk the Group’s Financial Statements). that risks are comprehensively identified
types. These are built around robust Their risk management policies and and evaluated to support risk decisions.
governance structures to ensure that practices are aligned with Group risk As part of our ongoing effort to enhance
they are effective, comprehensive standards where appropriate. group-wide risk data aggregation and
and consistent. reporting capabilities and to meet the
requirements stated in BCBS 239, we have
•
Holistic Risk Management –
RISK GOVERNANCE also embarked on initiatives to enhance
Risks are managed holistically, AND ORGANISATION our governance, reporting processes and
taking into account the potential systems, aligning them with the broad
interconnectivity among risk types. The Board establishes the Group’s principles stated in BCBS 239.
Both business and risk-control units risk appetite and risk management
actively participate in regular forums principles. The Board Risk Management The independence of risk management
to identify and assess material Committee (“BRMC”) is the principal from business functions ensures that we
emerging risks and opportunities Board committee that oversees the achieve the necessary balance between
from changes in the business Group’s risk management with the risk-taking and return considerations.
environment. Quantitative stress following key responsibilities: The compensation of risk officers is also
testing and sensitivity analysis • Sets the Group’s overall risk determined independent of business
supplemented with qualitative management philosophy, ensuring units and reviewed by the Remuneration
analysis help senior management it is in line with the overall corporate Committee to ensure it remains
quantify the impact that potential strategy and risk appetite as approved market-competitive.
adverse events pose to our portfolios by the Board.
and Group earnings. The results Senior management actively manages
• Reviews risk disclosure policy and
are considered in business strategy risks through various risk management
risk management principles for
formulation, capital adequacy committees, such as the Credit Risk
the approval of the Board.
assessment and risk limits setting. Management Committee, the Market
• Oversees the Group’s risk management Risk Management Committee, the
• Independent Review – Group Audit systems for identifying, measuring, Asset and Liability Committee and
conducts risk-based internal audits monitoring, controlling and reporting the Operational Risk Management
to provide independent assurance risk and ensuring the adequacy of risk Committee. Both risk-taking and risk-
that our risk management systems management practices. control units are represented in these
as well as control and governance • Approves risk management committees, emphasising shared risk
processes are effective and comply frameworks, major risk policies management responsibilities.
with both regulatory requirements and material risk models.
and internal rules and standards. All new products and services are
Group Audit also evaluates the overall The BRMC is supported by GRM, which governed by a New Product Approval
risk awareness, aptitude and attitude is headed by the Group Chief Risk Officer Process (“NPAP”) managed by GRM and
of the Management in effecting the (“CRO”). GRM is an independent risk and approved by the New Product Approval

RISK MANAGEMENT
Committee (“NPAC”). This process For market risk, we have adopted the credit exposure is quantified by the
provides a platform to ensure that all risks Standardised approach. Risk weights transactions’ current positive mark-to-
associated with new product or market for market risk assets are specified market value plus an appropriate add-on
initiatives are comprehensively identified, according to the instrument category, factor for potential future exposure.
assessed, managed and mitigated before maturity period, credit quality grade
market introduction. as well as other factors and applied to CREDIT RISK MANAGEMENT
the corresponding notional amount OVERSIGHT AND ORGANISATION
as prescribed under MAS Notice 637. The Credit Risk Management Committee
BASEL REQUIREMENTS For operational risk, we have adopted (“CRMC”) is the senior management
the Standardised approach except for group that supports the BRMC and
We have implemented the MAS Notice Bank OCBC NISP and OCBC Wing Hang, Group Chief Executive Officer (“CEO”)
637 on Risk Based Capital Adequacy which have adopted the Basic Indicator in managing credit risk, including the
Requirements for Banks incorporated in approach. Operational risk-weighted reshaping of credit portfolios. It reviews
Singapore (“MAS Notice 637”), including assets are derived by applying specified the credit profile of material portfolios
the enhanced quality of regulatory capital factors or percentages to the annual gross by business segments and geography to
base and expanded risk coverage under income for the prescribed business lines in ensure that credit risk taking is aligned
Basel III. As part of enhanced public accordance with regulatory guidelines. with the relevant business strategy and
disclosures on risk profile and capital consistent with our risk appetite. The
adequacy driven by changes in Part XI of We conduct the Internal Capital Adequacy CRMC also recommends and monitors
MAS Notice 637, the Board approves the Assessment Process (“ICAAP”) at least exposure undertaken against risk limits
risk disclosure policy which - among other annually to evaluate if we are able to and highlights any material risk issues to
requirements - includes establishing and maintain sound capital levels after the BRMC and CEO. In addition, the CRMC
maintaining internal control processes considering business plans and material reviews the enterprise-wide credit risk
over the disclosure. The Board has also risks under both base case and severe philosophy, the credit risk management
appointed the Group Chief Financial stress scenarios. Management actions are framework and major credit risk policies
Officer to attest that the Pillar 3 report proposed where necessary to ensure that for the approval of the BRMC. It also
has been prepared in accordance with the Group remains prudently managed. oversees compliance with the risk
internal control processes approved by management framework and policies
Implementing the Basel framework is and the effectiveness of infrastructure,
the Board. Please refer to the Pillar 3
an integral part of our efforts to refine
Disclosures section for information as methodologies and systems.
and strengthen our risk management.
at 31 December 2017.
We closely follow ongoing industry and
Credit Risk Management (“CRM”)
regulatory developments, including
For credit risk, we have adopted the departments ensure the execution
higher liquidity and capital requirements.
Foundation Internal Ratings-Based of the credit risk management
(“F-IRB”) approach and supervisory framework, policies and procedures.
slotting criteria to calculate credit risk-
CREDIT RISK These departments also independently
weighted assets for major wholesale MANAGEMENT manage credit risk to ensure adequacy
portfolios and the Advanced Internal of risk-returns within our risk appetite,
Ratings-Based (“A-IRB”) approach for Credit risk arises from the risk of loss customer targets, limits and risk
of principal or income on the failure of standards. Dedicated risk functions are
major consumer, small business and
an obligor or counterparty to meet its responsible for portfolio risk monitoring,
margin lending portfolios. Other credit
contractual obligations. As our primary risk measurement methodology, risk
portfolios, including those belonging
business is commercial banking, we are reporting and remedial management.
to OCBC Wing Hang and Bank OCBC
NISP are on the Standardised approach. exposed to credit risks from our lending
activities. Trading and investment Regular risk reports are provided to the
They will be progressively migrated to
banking activities, such as the trading CRMC, CEO, BRMC and the Board in a
the internal ratings-based approaches.
of foreign exchange, derivatives, debt timely, objective and transparent manner
The regulatory capital to be set aside for
securities, commodities, securities for review. These reports include detailed
credit risk-weighted assets depends on
underwriting and the settlement of credit exposures, credit migration,
various factors, including internal risk
transactions, also expose the Group expected losses and risk concentrations
grades, product type, counterparty type
to counterparty and issuer credit risks. by business portfolio and geography.
and maturity. For derivative transactions, the total Regular stress tests and portfolio reviews

are conducted to assess the potential Lending to Consumers and Advance ratios are dependent on the
impact of emerging risk on our credit Small Businesses liquidity, volatility and diversification
exposures, including interactions among Credit risks for consumers and small of the collateralised portfolio under
credit, market and liquidity events where businesses are managed on a portfolio stressed conditions. Credit exposures
appropriate. The results of the stress basis under credit programmes such as that are secured by marketable securities
tests and portfolio reviews are factored mortgages, credit cards, unsecured loans, are subject to daily valuation and
as necessary into the adjustment and auto loans, commercial property loans independent price verification controls.
refinement of risk-taking strategies and business term loans. Credit extended
under these programmes should fall Credit Risk from Investment and
and credit limits to remain within our
within the portfolio and transaction Trading Activities
risk appetite.
limits, defined target markets, stipulated Counterparty credit risks arising from our
lending criteria and acceptable collateral trading, derivatives and debt securities
CREDIT RISK MANAGEMENT APPROACH
as well as advance ratios. Systems and activities are actively managed to protect
Our credit risk management framework
processes such as source identification against potential losses in replacing a
encapsulates the complete cycle of
of credit origination and independent contract if a counterparty fails to meet
credit risk management. It covers the its obligations. Where possible, trading
verification of documentation are used
identification, assessment, measurement, in OTC derivatives is cleared through
to detect fraud. The performance of
monitoring as well as the control and Central Clearing Counterparties (“CCP”).
the portfolios is closely monitored on
mitigation of credit risks. It also articulates In most cases, bilateral transactions will
a monthly basis using management
the importance of proactive credit information system (“MIS”) analytics. be governed under International Swaps
risk management. Application models are also used in the and Derivatives Association (“ISDA”)
credit decision process for most products agreements as well as Credit Support
We seek to undertake credit risks that to enable objective, consistent and fast Annexes (“CSAs”) or an equivalent
meet our target market and risk acceptance decisions. Behavioural models are used to allow for close-out netting if the
criteria, lending parameters and risk-return for early identification of potential counterparty defaults. Credit limits are
expectations for sustainable performance. problem loans. established for each counterparty based
As Fair Dealing underpins our commitment on our assessment of the counterparty’s
to building long-term relationships with Lending to Corporate and creditworthiness, the suitability and
our customers, complex products are sold Institutional Customers appropriateness of the product offered
to them only after clearing suitability and Credit extended to corporate and and alignment with approved trading
appropriateness assessments. In addition institutional customers is individually mandates and investment strategies.
to effective risk management practices, assessed, risk-rated and approved by Credit exposures are independently
the sound judgement of our experienced experienced credit officers. The officers managed through daily limit monitoring,
credit officers is also key to our successful identify and assess the credit risks of excess escalation and approval, and
risk management. these customers, including customer timely risk reporting. We also have an
group’s interdependencies, management established policy and process to manage
quality, ESG practices as well as business, wrong-way risk which can occur when
We have a responsible financing
financial and competitive profiles against the credit exposure to a counterparty
framework that sets out our overall
industry and economic threats. Collaterals is adversely correlated with the credit
approach towards the management of
and other credit support are also used to quality of the counterparty.
ESG risks in our lending activities. This
mitigate credit risks. Credit extensions
framework aims to fully integrate ESG
are guided by pre-defined target market Credit Risk from Securitisation
considerations into our credit and risk
and risk acceptance criteria. To ensure We have limited exposure to asset-
evaluation process in a more structured
objectivity in credit extensions, co-grantor backed securities and collateralised
and systematic manner. It is supported approvals and shared risk ownership are debt obligations and are not active in
by our responsible financing policy and required from both business and credit securitisation activities.
relevant sectorial policies that outline risk units.
the criteria and guidelines for the ESG INTERNAL CREDIT RATING MODELS
assessment of clients and transactions. Lending to Private Banking Customers Internal credit rating models are
Transactions with high ESG or reputational Credit extended to our wealth an integral part of our credit risk
risk are escalated to the Reputational Risk management clients with the Bank of management, credit decision-making
Review Group for clearance. Periodic ESG- Singapore is subject to comprehensive process and capital assessment. These
related reporting is made to the BRMC and credit assessments, the availability of internal rating models and the parameters
CEO on the progress of our responsible acceptable collateral and compliance – probability of default (“PD”), loss given
financing implementation. Please refer to with loan advance ratios and margin default (“LGD”) and exposure at default
our Sustainability Report in the Annual requirements. Joint approvals from both (“EAD”) – are factors used in limit setting,
Report for more information on our business and credit risk units ensure credit approval, portfolio monitoring and
progress on responsible financing. objectivity in the credit extensions. reporting, remedial management, stress

RISK MANAGEMENT
testing, internal assessment of the capital models, developed from internal data, Standardised Approach for
adequacy and impairment allowances. are used to estimate PD, LGD, and EAD Other Portfolios
parameters for each of these portfolios. Credit portfolios in OCBC Wing Hang
Model risk is managed under our model Application and Behaviour scores of and Bank OCBC NISP are under the
risk management framework and credit obligors are key inputs to the PD models. Standardised approach. These portfolios
rating model framework to govern the Product, collateral and geographical will be progressively migrated to the
development, validation, application characteristics are major factors used in internal ratings-based approaches for
and performance monitoring of rating the LGD and EAD models. The PD models which implementation initiatives are in
models. Approval for adoption and are calibrated to the expected long-term progress for OCBC Wing Hang. Regulatory
continued use of material models average one-year default rate over an prescribed risk weights based on asset
rests with the BRMC. The models are economic cycle, while the LGD models are class and external ratings from approved
developed with the active participation calibrated to reflect the economic loss credit rating agencies, where available,
of credit experts from risk-taking and risk- under downturn conditions. are used to determine regulatory capital.
control units and subject to independent Approved external credit rating agencies
validation before implementation to are Standard and Poor’s, Moody’s and
F-IRB for Major Wholesale Portfolios
ensure that all aspects of the model Fitch Ratings.
Our major wholesale portfolios, namely
development process have met the sovereign, bank, non-bank financial
internal standards. CREDIT RISK CONTROL
institution, corporate real estate
Credit Risk Mitigation
(including income-producing real
The models are subject to annual Credit risk assessments are based on
estate specialised lending) and general
review (or more frequently, where the credit worthiness of the borrower,
corporate, are on the F-IRB approach.
necessary) and independent validation source of repayment and debt servicing
Under this approach, internal models
to ensure that they are performing as ability. To mitigate credit risk, we accept
are used to estimate the PD for each
expected and that the assumptions collaterals and credit protection such as
obligor, while LGD and EAD parameters
used in model development remain cash, real estate, marketable securities,
are prescribed in MAS Notice 637. These
appropriate. In addition, Group Audit inventories and trade receivables and
PD models are statistical based or
conducts an annual independent review standby letters of credit. We have policies
expert judgement models that use both
of the ratings assignment process, that set out the criteria for collateral to
quantitative and qualitative factors to
the effectiveness of the independent be recognised as eligible credit risk
assess an obligor’s repayment capacity mitigants including legal certainty,
validation and the accuracy of the rating
and are calibrated to the expected long- priority, correlation, marketability,
system operation. All rating models are
term average one-year default rate over liquidity and counterparty risk of
assessed against internal and regulatory
an economic cycle. Expert judgement the protection provider. The value of
requirements and approved by regulators
models are typically used for portfolios collaterals is prudently assessed on
for use in capital assessment.
with low defaults following inputs from a regular basis, and valuations are
internal credit experts. The models also performed by independent qualified
Our internal risk grades are not explicitly
comply with the regulatory criteria for appraisers. Appropriate haircuts are
mapped to external credit ratings.
parameterisation. For other specialised applied to the market value of the
Nevertheless, our internal risk grades may
lending portfolios, namely Project Finance, collaterals, reflecting the underlying
correlate with the external credit ratings
Object Finance and Commodities Finance, nature, quality, liquidity and volatility of
in terms of the probability of default
risk grades derived from internal models the collateral. We also accept guarantees
ranges as factors used to rate obligors
would be similar; an obligor rated poorly are mapped to the five supervisory slotting from individuals, corporates and
by an external credit rating agency is categories prescribed in MAS Notice 637. institutions as a form of support.
likely to have a weaker internal risk rating. The risk weights prescribed for these
slotting categories are used to determine To manage counterparty credit risk,
A-IRB for Major Consumer, Small the regulatory capital requirements. eligible financial collaterals may be taken
Business and Margin Lending Portfolios to partially or fully cover mark-to-market
We have adopted the A-IRB approach IRB Approach for Securitisation Exposures exposures on outstanding positions,
for major consumer portfolios, including The credit risk-weighted assets for with a haircut to cover potential
residential mortgages, credit cards and securitisation exposures are computed adverse market volatility. Collateral
auto loans as well as small business using the ratings-based method arrangements, typically covered under
and margin lending. Internal rating prescribed by MAS Notice 637. market standard documentation such

as ISDA, include a minimum threshold and retention in such instances, even allowance for all performing loans to cover
amount where additional collateral is to as we enforce strict discipline and place expected losses that are not yet evident.
be posted by either party if the mark- a priority on remedial management to
to-market exposures exceed the agreed minimise credit loss. Specific allowances for credit losses
threshold. The credit risk associated with are evaluated either individually or
contractual obligations is reduced by the We classify our credit exposures collectively for a portfolio. The amount
netting agreements to the extent that if according to the borrowers’ ability to of specific allowance for an individual
an event of default occurs, all amounts repay their financial obligations on time credit exposure is determined by
with the counterparty are settled on a and in full from their normal sources of ascertaining the difference between
net basis. Agreements may also contain income. Credit exposures are categorised the present value of future recoverable
rating triggers where additional collateral as “Pass” or “Special Mention”, while non- cash flows of the impaired loan and
posting is required in the event of a performing loans (“NPLs”) are categorised the carrying value of the loan. For
rating downgrade. However, given our as “Substandard”, “Doubtful”, or “Loss” homogenous unsecured retail loans
investment grade rating, there is minimal in accordance with MAS Notice 612 on such as credit card receivables, specific
increase in collateral posting under a one- Credit Files, Grading and Provisioning allowances are determined collectively as
notch rating downgrade occurrence. We (“MAS Notice 612”). Upgrading of NPL a portfolio, taking into account historical
also use CCP to reduce counterparty risk to performing status can only be done loss experience of such loans. NPLs are
for Over-the-Counter (“OTC”) derivatives. when there is an established trend of written off against specific allowances
credit improvement. The upgrade needs when all feasible recovery actions have
Managing Credit Risk Concentrations to be supported by an assessment of the been exhausted or when the recovery
Credit risk concentrations may arise borrower’s repayment capability, cash prospects are considered poor.
from lending to a single borrower, a flows, and financial position.
group of connected borrowers, or diverse Portfolio allowances are set aside based
groups of borrowers affected by similar Credit exposures are classified as on our credit experiences and judgement
economic or market conditions. Where restructured assets when we have for estimated inherent losses that may
appropriate, limits are set and monitored granted concessions in restructured exist but have not been identified
to control concentrations by borrower, repayment terms to borrowers who are for any specific financial asset. Credit
group of connected borrowers, product, facing difficulties in meeting the original experiences are based on historical loss
industry and country. These limits are repayment schedules. A restructured rates that take into account geographic
aligned with our risk appetite, business credit exposure is classified into the and industry factors. Under the current
strategy, capacity and expertise. Impact appropriate non-performing grades based Financial Reporting Standard 39 (“FRS 39”)
on earnings and capital is also considered on the assessment of the borrower’s as modified by MAS Notice 612,
in limit setting. financial condition and ability to repay a minimum of 1% portfolio allowance
under the restructured terms. Such a on uncollateralised exposures is set
We continue to diversify our country credit exposure must comply fully with aside as portfolio allowances.
exposure with our expanded presence the restructured terms before it can be
and activities in Greater China, Malaysia restored to performing loan status in Impairment allowances will be guided by
and Indonesia. As a key player at home, accordance with MAS Notice 612. Singapore Financial Reporting Standard
we have significant exposure to the real (International) 9: Financial Instruments
estate market in Singapore. Dedicated We have dedicated remedial management (“SFRS(I) 9”) with effect from 1 January
specialist real estate units manage this units to manage the restructuring, work- 2018. SFRS(I) 9 replaces the FRS 39 loan
risk by focusing on client selection, out and recovery of non-performing impairment allowance requirements
collateral quality, project viability and real assets for wholesale portfolios. For as modified by MAS Notice 612 with
estate cycle trends. Regular stress tests retail portfolios, appropriate risk-based a forward-looking expected credit
are also conducted to identify potential and time-based collections strategies loss (“ECL”) model (for information on
vulnerabilities in the real estate portfolio. are developed to maximise recoveries. impairment allowance, refer to Note 50
We also use analytical data such as in the Financial Statements).
REMEDIAL MANAGEMENT delinquency buckets and adverse status
We have an established process to tags for delinquent consumer loans to
constantly assess our portfolios to constantly fine-tune and prioritise our
MARKET RISK
detect potential problem credits at collection efforts. MANAGEMENT
an early stage. As we value long-term
customer relationships, we understand Impairment Allowances for Loans Market risk is the risk of loss of income
that some customers may be facing We maintain impairment allowances or market value due to fluctuations in
temporary financial distress and prefer that are sufficient to absorb credit losses factors such as interest rates, foreign
to work closely with them at the onset inherent in our loan portfolios. Total loan exchange rates, credit spreads, equity and
of their difficulties. We recognise the impairment allowances comprise specific commodity prices or changes in volatility
opportunity to promote customer loyalty allowances against NPLs and a portfolio or correlations of such factors. At OCBC

RISK MANAGEMENT
Group, we are exposed to market risks within their approved trading strategies Other Risk Measures
from our trading, client servicing and and investment mandates, while MRM As the Group’s main market risk is interest
balance sheet management activities. acts as the independent monitoring unit rate fluctuations, Present Value of a
to ensure sound governance. The key risk Basis Point (“PV01”), which measures
Our market risk management strategy management activities of identification, the change in value of interest rate-
and market risk limits are established measurement, monitoring, control and sensitive exposures resulting from a one
within the Group’s risk appetite and reporting are regularly reviewed by basis point increase across the entire
business strategies, taking into MRM and the MRMC to ensure effective yield curve, is an important measure
account macroeconomic and market risk management under prevailing monitored on a daily basis. Other than
conditions. Market risk limits are market conditions. VaR and PV01, other risk measurements
subject to regular review. used include notional positions, Profit
MARKET RISK IDENTIFICATION & Loss (“P&L”) for One Basis Point Move
MARKET RISK MANAGEMENT Risk identification is addressed via our in Credit Spreads (“CS01”) and derivative
OVERSIGHT AND ORGANISATION internal NPAP at product inception. greeks for specific exposure types.
The Market Risk Management Committee Market risks are also identified by our
(“MRMC”) is the senior management risk managers from their ongoing Stress Testing and Scenario Analysis
group that supports the BRMC and interactions with the business units. We perform stress testing and scenario
CEO in managing market risk. The analysis to better quantify and assess
MRMC oversees the market risk MARKET RISK MEASUREMENTS potential losses arising from low
management objectives, framework Value-At-Risk probability but plausible extreme market
and policies governing prudent market Value-at-risk (“VaR”), as a key market risk conditions. The stress scenarios are
risk taking, which are backed by risk measure for the Group’s trading activities, regularly reviewed and fine-tuned to
methodologies, measurement systems is a component of aggregate market risk ensure that they remain relevant to the
and internal controls. appetite. VaR is measured and monitored Group’s trading activities and risk profile
by its individual market risk components, as well as prevailing and forecasted
The MRMC is chaired by CRO and namely interest rate risk, foreign exchange economic conditions. These analyses
supported by the Market Risk risk, equity risk and credit spread risk as determine if potential losses from such
Management (“MRM”) department. well as at the consolidated level. Our VaR extreme market conditions are within
MRM is the independent risk-control model is based on a historical simulation the Group’s risk tolerance.
unit responsible for operationalising the at a 99% confidence level, and over a one-
market risk management framework to day holding period. As VaR is a statistical The table below provides a summary
support business growth while ensuring measure based on historical market of the Group’s trading VaR profile by
adequate risk control and oversight. fluctuations, past changes in market risk risk types as at 31 December 2017 and
factors may not accurately predict forward- 31 December 2016.
MARKET RISK MANAGEMENT APPROACH looking market conditions all the time.
Market risk management is a shared Under the defined confidence threshold,
responsibility. Business units are losses on a single trading day may exceed
responsible for proactively managing risk VaR, on average, once every 100 days.
VaR BY RISK TYPE – Trading Portfolio
2017 2016
End of End of
SGD Millions the period Average Minimum Maximum the period Average Minimum Maximum
Interest Rate VaR 5.44 5.48 2.63 9.06 3.64 3.86 2.45 6.73
Foreign Exchange VaR 2.13 4.97 1.81 13.77 7.69 7.1 2.34 13.53
Equity VaR 0.55 0.79 0.39 2.04 0.51 0.84 0.21 2.31
Credit Spread VaR 1.38 1.87 1.16 5.49 4.63 4.09 1.96 9.95
Diversification Effect (1) -4.40 -4.88 NM(2) NM(2) -8.52 -7.38 NM(2) NM(2)
Aggregate VaR 5.10 8.24 4.44 15.85 7.95 8.51 4.48 14.10
(1)
Diversification effect is computed as the difference between Aggregate VaR and sum of asset class VaRs.
(2)
Not meaningful as the minimum and maximum VaR may have occurred on different days for different asset classes.

RISK MONITORING AND CONTROL Frequency distribution of Group
Group Trading
TradingBook
BookDaily
DailyTotal
TotalVaR
VaR
Limits (One Day Holding Period) for 2017
Only authorised trading activities for
approved products may be undertaken by Number of Trading Days
the various trading units. All trading risk 120
positions are monitored on a daily basis

against approved and allocated limits
100
by independent support units. Trading
activities are conducted within approved
mandates and dynamically hedged to
80
remain within limits. Hedge effectiveness
is implicit in ensuring compliance with
market risk limits and enforced through
60
independent limits monitoring. Limits
are approved to reflect available and
anticipated trading opportunities, with
40
clearly defined exception escalation
procedures. Exceptions, including any
temporary breaches, are promptly
20
reported and escalated to senior
management for resolution. Multiple
risk limits (VaR and risk sensitivities), 0
P&L stop loss and other measures
0-2
2-4
4-6
6-8
8-10
10-12
12-14
14-16
16-18
18-20
are also used to manage market risk
exposures holistically. (S$ million)
Model Validation 120 Frequency distribution of Group Trading Daily P&L for FY 2017
Model validation is also an integral part Frequency distribution of Group Trading Daily P&L for FY 2017
of our risk control process. Financial
models are used to price financial Number of Trading Days
instruments and to calculate VaR. We 100
ensure that the models used are fit for

their intended purposes through internal
validation and assessment. Market rates 80
used for risk measurement and valuation
are sourced independently, thereby
enhancing the integrity of the trading
P&L and risk measures generated by 60
the financial models used in managing

market risk exposures.
40
Back-testing
To ensure the continued integrity of the
VaR model, we regularly back-test the VaR
estimates against actual daily trading 20
P&Ls and theoretical P&Ls to confirm that

the VaR model does not underestimate
market risk exposures. 0
(12)-(10)
(10)-(8)
(8)-(6)
(6)-(4)
(4)-(2)
(2)-0
0-2
2-4
4-6
6-8
8-10
10-12
(S$ million)
100

RISK MANAGEMENT
System and Infrastructure management, interest rate risk implementing the regulatory reporting
Robust internal control processes management and structural foreign of group-wide NSFR from January 2018
and automated systems have been exchange risk management. and will incorporate OCBC Yangon later
designed and implemented to support in 2018.
our market risk management approach. Liquidity Risk
This includes automated stress tests The objective of liquidity risk management Interest Rate Risk
with analytical capability, enhanced is to ensure that there are sufficient funds The primary goal of interest rate risk
accuracy, granularity and coverage of VaR to meet contractual and regulatory management, including IRRBB is to ensure
elements. These process and systems are financial obligations and to undertake that interest rate risk exposures are
also reviewed regularly to assess their new transactions. maintained within defined risk tolerances
continual effectiveness. and are consistent with our risk appetite.
Our liquidity management process
involves establishing liquidity Interest rate risk is the risk to earnings
ASSET LIABILITY management policies and limits, and and capital arising from exposure to
MANAGEMENT regular monitoring against them. adverse movements in interest rates.
We also perform short-term liquidity The material sources of interest rate
Asset liability management is the stress tests based on institution risk are repricing risk, yield curve risk,
strategic management of the Group’s specific and market-wide liquidity basis risk and optionality risk. A range of
balance sheet structure and liquidity stress scenarios. The results of the techniques are used to measure these
requirements, covering liquidity stress tests are used to adjust liquidity risks from an earnings and economic
sourcing and diversification as well risk management strategies, policies value perspective. One method involves
as interest rate and structural foreign and positions and to develop effective the simulation of the impact of various
exchange management. contingency funding plans. interest rate scenarios on the Group’s net
interest income and economic value of
ASSET LIABILITY MANAGEMENT Liquidity monitoring is performed daily equity (“EVE”). Other measures include
OVERSIGHT AND ORGANISATION within a framework for projecting cash interest rate sensitivity measures such
The Asset Liability Management flows on a contractual and behavioural as PV01 as well as repricing gap profile
Committee (“ALCO”) is the senior basis. Simulations of liquidity exposures analysis. Triggers are set based on our
management group that is responsible for under stressed market scenarios are risk appetite on earnings and capital.
the management of the Group’s balance performed, and the results are taken The results are used to adjust interest
sheet and liquidity risks. The ALCO is into account in the risk management rate risk management strategies, policies
chaired by the CEO and includes senior processes. Indicators such as liquidity and positions.
management from the business, risk and and deposit concentration ratios are used
support units. to establish the level of optimal funding Limits are established to manage
mix and asset composition. Funding interest rate exposures and reviewed
The ALCO is supported by the Corporate strategies are established to provide regularly to ensure they remain relevant
Treasury department within the Group effective diversification and stability in in the context of the prevailing external
Finance Division. The Asset Liability funding sources across tenors, products environment. Control systems are in place
Management (“ALM”) department and geographies. In addition, we maintain to monitor the risk profile against the
within GRM monitors the banking liquid assets in excess of regulatory approved risk thresholds.
book interest rate, structural foreign requirements to strengthen our ability to
exchange and liquidity risk profiles for meet liquidity needs during a crisis. These We are in the process of implementing
the Group under both business-as-usual liquid assets comprise statutory reserve the regulatory reporting of group-wide
and stressed scenarios. These are based eligible securities as well as marketable IRRBB, which will take effect from
on the standards established in the ALM shares and debt securities. December 2018.
framework, policies and procedures
which are subject to regular reviews In 2017, we continued our daily regulatory Structural Foreign Exchange Risk
to ensure that they remain relevant in reporting of our group-wide Liquidity Structural foreign exchange exposure
the context of the prevailing market Coverage Ratio (“LCR”), excluding OCBC arises primarily from our net investment
conditions and practices. Wing Hang Hong Kong, OCBC Wing Hang and retained earnings in overseas
Macao and OCBC Yangon. We will be branches, subsidiaries as well as other
ASSET LIABILITY including OCBC Wing Hang Hong Kong strategic and property assets. We manage
MANAGEMENT APPROACH and OCBC Wing Hang Macao in our structural foreign exchange risk through
The asset liability management reporting from January 2018 and OCBC hedges and matched funding for foreign
framework comprises liquidity risk Yangon later in 2018. We will also be currency investments where appropriate.

Other Risks ORM framework, supporting policies In addition, the subject specific key risks
Non-structural foreign exchange and procedures. It also independently that the Group focuses on include but are
exposures in banking book are largely oversees operational risk monitoring not limited to:
transferred to trading book for foreign and controls that reside within business,
exchange risk management. High quality products and process owners. The ORM Outsourcing Risk Management
liquid assets (“HQLA”) held in banking programmes are actively implemented We recognise the risks associated with
book to comply with LCR expose the through the respective Operational outsourcing arrangements. As part
Group to credit spread risk. While HQLA Risk Partners (“ORP”) or managers in of our outsourcing risk management
are of low default risk, their value could the business units and subsidiaries. To programme, we have a multi-disciplinary
be sensitive to changes in credit spread. raise competency levels in managing outsourcing management group to
This risk is monitored against approved operational risk, all ORPs or managers manage outsourcing risks in a structured,
CS01 limits on a daily basis and subject are certified by an industry recognised systematic and consistent manner. In
to historical and anticipatory stress tests. accreditation programme. addition, as an active member of the
The other risk residing in the banking ABS Outsourcing Advisory Committee,
book is non-strategic equity price risk OPERATIONAL RISK we share outsourcing practices and keep
arising from our equity investment MANAGEMENT APPROACH abreast of developments in the industry.
in listed and non-listed companies. We adopt an operational risk
management framework that ensures Physical and People Security
Such non-strategic equity forms an
Risk Management
insignificant portion of our overall operational risks are properly identified,
We have a programme to ensure that
securities portfolio, excluding GEH. managed, monitored, mitigated and
physical and security risk to people and
reported in a structured and consistent
assets is adequately addressed. This
manner. The framework is underpinned
OPERATIONAL by a strong risk management and
includes having a unit to actively monitor
and scan global events that may pose
RISK MANAGEMENT control culture.
a risk to OCBC locations, people and
assets. This unit provides advisories and
Operational risk is the risk of loss Each business unit undertakes self-
response procedures to better prepare
resulting from inadequate or failed assessments on a regular basis by
the Bank and its employees against risk
internal processes, people, systems and assessing the robustness of its risk and
events. To mitigate physical security
management or from external events. control environment, including compliance
risks, we are enhancing the access
Operational risk management enables with all legal and regulatory requirements.
control management of our buildings.
us to fulfil our fiduciary duties, comply Self-assessment declarations are subject
with legal and regulatory requirements to risk-based independent reviews. Business Continuity Risk Management
and mitigate other risk factors. This Performance metrics are also used to We have a comprehensive and robust
will also help manage any reputational detect early warning signals and to business continuity management
risks impact. drive appropriate management actions programme that aims to minimise
before the risks result in material losses. the interruption to essential business
The Group’s operational risk management To enhance controls over trading activities activities and services during a crisis. This
aims to manage both expected and and data loss prevention, we have specific is achieved through the implementation
unexpected losses, including those risk units to perform surveillance over of robust recovery strategies and business
caused by catastrophic events. These these areas. recovery plans which are reviewed and
twin objectives act as parameters to
tested annually. Senior management also
manage our risk as we pursue new Senior management attests annually provides an annual attestation to the
business opportunities. to the Audit Committee, BRMC and BRMC which includes a measurement
CEO regarding the adequacy and of the programme’s maturity across the
OPERATIONAL RISK MANAGEMENT effectiveness of the internal controls and Group and the extent of alignment to
OVERSIGHT AND ORGANISATION risk management systems as well as key MAS guidelines, as well as a declaration
The Operational Risk Management control deficiencies and accompanying of acceptable residual risk.
Committee (“ORC”) is the senior remedial plans. Operational risk data
management group that supports the (e.g. operational risk events and self- Fraud Risk Management
BRMC and CEO in managing operational assessments) are analysed and reported Our fraud risk management and whistle-
risk. It supports the Group’s business regularly to senior management. blowing programmes aim to prevent
strategy by ensuring that the operational and detect fraud or misconduct. Fraud
risk is within acceptable tolerance levels To mitigate against operational losses, incident reports – including root cause
and approved risk appetite. ORC also insurance programmes are in place to analysis, extent of damage, remedial
ensures that the Group’s operational protect the Bank and its employees actions and recovery steps for major
risk management programmes are against adverse events. These incidents – are regularly reported to
appropriate and effective. programmes cover losses relating to the ORC and BRMC. We have a Fraud
crime, cyber risks, professional indemnity, Surveillance System to detect suspicious
The Operational Risk Management directors’ and officers’ liability, property transactions. This system uses machine
(“ORM”) department establishes the damage and public liability. learning through continuous assessment

RISK MANAGEMENT
of individual customers’ transaction mitigated and reported. Appropriate external audits as well as regulatory
patterns, and the setting of standard controls are in place to ensure the inspections. The senior management
deviations for monitored transactions. confidentiality, integrity and availability and the Board have oversight of the
Group Audit independently reviews all of our information assets. programme, which is reviewed regularly to
fraud and whistle-blowing cases and reports ensure that it remains robust and relevant
their findings to the Audit Committee. We raise our staff awareness on cyber in the context of the evolving regulatory
information and vigilance against cyber risk landscape and operating environment. They
Reputational Risk Management through regular email reminders, training are kept apprised on enhancements to the
Reputational risk is the current and and campaigns that include the use of test programme as well as significant regulatory
prospective risk to earnings and capital emails. We participate in industry-level changes in the various host countries where
arising from adverse perceptions of exercises and collaborate with industry we have business operations.
the Group’s image among customers, participants and government agencies to
counterparties, shareholders, investors share intelligence and counter measures We regularly invest in the group-wide
and regulators. We have a reputational against new forms of cyber-attacks. systems, upgrading or replacing them
risk management policy which focuses from time to time to strengthen our
on understanding and managing our Anti-Money Laundering/Countering the capabilities in customer risk management
responsibilities towards our different Financing of Terrorism Risk Management and transaction monitoring. Given the
stakeholders as well as protecting We have a structured framework and dynamic and complex evolution of money
our reputation. A key emphasis of the programme for combating money laundering tactics, we have identified and
programme is effective information sharing laundering and countering the financing leveraged on new fintech solutions using
and engagement with stakeholders. of terrorism that is implemented machine learning and artificial intelligence
across the Group. This incorporates to supplement and optimise our existing
Fiduciary Risk Management the MAS Notice 626 on Prevention of customer transaction monitoring system.
We have a fiduciary risk management Money Laundering and Countering the These solutions will enable the Bank
programme to manage risks associated Financing of Terrorism and is in line to more accurately detect suspicious
with fiduciary relationships from managing with the principles or guidelines set by transactions and reduce the high rate
funds or providing other agency services. international organisations, such as the of false positive alerts often generated
The programme provides guidelines Basel Committee and Wolfsberg Group. by rule-based monitoring systems.
on regular identification, assessment,
monitoring and mitigation of fiduciary risk Our programme is aimed at managing and We recognise that our employees
exposures, to ensure our compliance with mitigating potential exposure to existing and play an integral role in our AML/CFT
applicable corporate standards. emerging money laundering and terrorism efforts and have emphasised the
financing (“ML/TF”) risks emanating from importance of staying vigilant against
Legal and Regulatory Risk Management
the various customer segments, products ML/TF and sanctions risks to our
We hold ourselves to high standards
and services, delivery channels as well business and network. To ensure that
when conducting our business and at all
as the range of host countries where our employees understand these risks,
times observe and comply with applicable
we have business operations. It includes they must undergo basic training
laws, rules and standards. We have an
observance of sanctions required by the when they join the bank and regular
established compliance risk programme
MAS and the respective regulators of refresher training thereafter. We also
which defines the required environment
countries where our international offices provide specific training to enable
and organisational components for
and subsidiaries operate. In this regard, we relevant employees to carry out their
managing the risk in a structured,
have implemented appropriate policies respective roles and to keep abreast of
systematic and consistent manner. Each
and procedures to conduct customer due developments in the financial industry.
business unit is responsible for having
diligence to know our customers as well as The respective Board and management
adequate and effective controls to
manage both legal and regulatory risks. transaction monitoring capabilities to detect committees of the entities in the Group
Senior management provides the BRMC unusual or suspicious transactions. Where are trained regularly to enable them
and CEO with an annual Regulatory required, our international offices and to oversee our AML/CFT programme.
Compliance Certification regarding the subsidiaries customise the programme to The training encompasses AML/CFT
state of regulatory compliance. ensure that they are fit for the host country and sanctions regulations, case studies
where they operate in, provided the depicting local or transnational criminal
Technology, Information and higher standard is adopted. activities and new or developing typologies.
Cyber Risk Management
We adopt a holistic approach to ensure Our anti-money laundering and countering
that technology, information and cyber the financing of terrorism (“AML/CFT”)
risks are properly assessed, monitored, programme is subject to internal and

PILLAR 3 DISCLOSURES
(OCBC Group – As at 31 December 2017)
1. INTRODUCTION are in accordance with MAS Notice 637 paragraphs 6.1.3(p),

6.2.3(e) and 6.3.3(e).
This document presents the information in accordance with
Pillar 3 (“P3”) disclosure requirements under Monetary Authority • As at 31 December 2017, the total equity of these
of Singapore (“MAS”) Notice 637 on Risk Based Capital Adequacy insurance subsidiaries was S$8 billion and total assets
Requirements for banks incorporated in Singapore. The P3 were S$84 billion.
requirements specify reporting templates for most of the
quantitative disclosures to enable market participants to better Disclosures on the Group’s reconciliation of regulatory capital
compare the capital adequacy and risk profile across banks via and regulatory capital position can be found in Section 4 of
improved consistency in public disclosure. this document.
For purpose of the year-end disclosure for OCBC Group 3. CAPITAL ADEQUACY
(“Group”) as at 31 December 2017, explanations of the drivers
behind significant differences between reporting periods for 3.1 CAPITAL ADEQUACY AND G-SIB INFORMATION
the respective sections are provided where appropriate. The
disclosure on the RWA flow statements for the following are Disclosures on the Group’s capital adequacy ratios and the
omitted as there is no exposure treated under these approaches: capital positions for the Group’s significant banking subsidiaries
– Counterparty Credit Risk (“CCR”) under the Internal as at 31 December 2017 are presented in the Capital Adequacy
Models Method (“IMM”) Ratios section of the Financial Year 2017 Financial Results
– Market Risk exposures under the Internal Models (http://www.ocbc.com/group/investors/index.html).
Approach (“IMA”)
The Basel Committee has developed an indicator-based
As part of enhanced public disclosures on risk profile and measurement approach to identify Global Systemically
capital adequacy driven by changes in Part XI of MAS Notice Important Bank (“G-SIB”) and determine the higher loss
637, the Group’s disclosure policy, which outlines the Group’s absorbency requirements for banks classified as G-SIBs.
approach and internal controls on the preparation of the required While OCBC is not a G-SIB, it is required under MAS Notice 637
information for public disclosures to ensure their accuracy to disclose the indicators which can be found on the Bank’s
and completeness, has been reviewed and updated. Investor Relations website (http://www.ocbc.com/group/
investors/Cap_and_Reg_Disclosures.html).
For qualitative description of the Group’s disclosures, please refer
to Section 16 of this document. 3.2 GEOGRAPHICAL DISTRIBUTION OF CREDIT EXPOSURES
USED IN THE COUNTERCYCLICAL CAPITAL BUFFER
2. ACCOUNTING AND
The following table provides an overview of the Group’s
REGULATORY CONSOLIDATION geographical distribution of private sector credit exposures for
the calculation of countercyclical buffer.
The consolidation basis used for regulatory capital
computation is similar to that used for financial reporting The geographical distribution is based on the country where the
except for the following: physical collateral resides in, residence of the guarantor, or in the
absence of such mitigant, the country of obligor (i.e. the country
• Great Eastern Holdings Limited and its insurance subsidiaries where the majority of the obligor’s operating assets is situated)
are excluded from regulatory consolidation and are treated in accordance with MAS Notice 637 requirements.
as investments in unconsolidated major stake companies
that are financial institutions in accordance with MAS Higher RWA in Hong Kong during the second half of 2017 was
Notice 637 amended definition of insurance subsidiary. mainly driven by increase in loans that was partially offset by the
The regulatory adjustments applied to these investments adoption of IRB Approach of Margin Lending portfolio.
(a) (b) (c) (d)

Country-Specific countercyclical RWA for private sector Bank-specific countercyclical Countercyclical
buffer requirement credit exposures buffer requirement (1) buffer amount
% S$ million % S$ million
Geographical breakdown
Hong Kong 1.25% 18,763
Sweden 1.25% 2
Sub-total 18,765
Total 138,041 0.17% 328
(1)
he Bank-specific countercyclical buffer is the additional capital which needs to be maintained above the Regulatory minimum and Capital
T
Conservation buffer requirement

4. COMPOSITION OF CAPITAL
4.1 RECONCILIATION OF REGULATORY CAPITAL
S$’m
BALANCE SHEET UNDER REGULATORY
AS PER PUBLISHED SCOPE OF CROSS REFERENCE
FINANCIAL STATEMENTS CONSOLIDATION TO SECTION 4.2
EQUITY
Share capital 15,136
of which: Paid-up ordinary shares 14,136 a
of which: Transitional: Ineligible AT1 capital instruments 1,448 b
Other equity instruments 499 499 c
Reserves:
Capital reserves 361
Fair value reserves 120
Revenue reserves 22,892
Total reserves 23,373
of which: Retained earnings 17,556 d
of which: Accumulated other comprehensive income
and other disclosed reserves 365 e
Non-controlling interests 2,768
of which: Transitional: Ineligible AT1 capital instruments 949 f
of which: Minority interest that meets criteria
for inclusion in CET1 Capital 209 g
of which: Minority interest that meets criteria
for inclusion in AT1 Capital 30 h
Valuation adjustments – 0
Total equity 41,776
LIABILITIES
Deposits of non-bank customers 283,642
Deposits and balances of banks 7,485
Due to associates 220
Trading portfolio liabilities 622
Derivative payables 6,454
Other liabilities 6,065
Current tax 1,102
Deferred tax 1,582
of which: Associated with intangible assets 59 i
Debt issued 32,235
of which: AT1 capital instruments issued by fully-consolidated
subsidiaries that meet criteria for inclusion 59 j
of which: T2 capital instruments 2,688 k
of which: Transitional: Ineligible T2 capital instruments 1,337 l
of which: T2 capital instruments issued by fully-consolidated
subsidiaries that meet criteria for inclusion 18 m
Life assurance fund liabilities 73,755
Total liabilities 413,162
Total equity and liabilities 454,938

4.1 RECONCILIATION OF REGULATORY CAPITAL (Continued)
S$’m
BALANCE SHEET UNDER REGULATORY
AS PER PUBLISHED SCOPE OF CROSS REFERENCE
FINANCIAL STATEMENTS CONSOLIDATION TO SECTION 4.2
ASSETS
Cash and placements with central banks 19,594
Singapore government treasury bills and securities 9,840
Other government treasury bills and securities 17,631
Placements with and loans to banks 49,377
Loans and bills receivable 234,141
of which: Eligible provision for inclusion in T2 Capital subject to cap
in respect of exposures under SA and IRBA 630 n
Debt and equity securities 25,329
of which: Indirect investments in own Tier 2 instruments 0 o
of which: Investments in unconsolidated major stake
financial institutions 759 p
of which: Investments in unconsolidated non major stake
financial institutions 585 q
Investments in insurance subsidiaries 1,953 r
Derivative and forward securities in unconsolidated non major
stake financial institutions 17 s
Assets pledged 1,056
Assets held for sale 39
financial institutions 33 t
Derivative receivables 6,386
Other assets 5,651
Deferred tax 174
of which: Deferred tax assets before netting 331 u
Associates and joint ventures 2,352
financial institutions 2,149 v
Property, plant and equipment 3,332
Investment properties 949
Goodwill and intangible assets 5,160
of which: Goodwill 3,992 w
of which: Intangible assets 396 x
Life assurance fund investment assets 73,927
Total assets 454,938
There were no significant changes over the semi-annual reporting period except for the adoption of the amended definition of
insurance subsidiary in accordance with MAS Notice 637 with effect from December 2017.
Great Eastern Holdings and its insurance subsidiaries were excluded from regulatory consolidation and such investments were
accounted for at cost.

4.2 REGULATORY CAPITAL POSITION

S$’m
AMOUNT SUBJECT TO CROSS REFERENCE
AMOUNT PRE-BASEL III TREATMENT TO SECTION 4.1
Common Equity Tier 1 capital: instruments and reserves
1 Paid-up ordinary shares and share premium (if applicable) 14,136 a
2 Retained earnings 17,556 d
3 Accumulated other comprehensive income and other
disclosed reserves 365 e
4 Directly issued capital subject to phase out from CET1
(only applicable to non-joint stock companies)
5 Minority interest that meets criteria for inclusion 209 (27) g
6 Common Equity Tier 1 capital before regulatory adjustments 32,267
Common Equity Tier 1 capital: regulatory adjustments
7 Valuation adjustment pursuant to Part VIII of MAS Notice 637 0
8 Goodwill, net of associated deferred tax liability 3,194 798 w
9 Intangible assets, net of associated deferred tax liability 269 67 x-i
10 Deferred tax assets that rely on future profitability 265 66 u
11 Cash flow hedge reserve (0) (0)
12 Shortfall of TEP relative to EL under IRBA – –
13 Increase in equity capital resulting from securitisation transactions – –
14 Unrealised fair value gains/losses on financial liabilities and derivative
liabilities arising from changes in own credit risk – –
15 Defined benefit pension fund assets, net of associated
deferred tax liability –
16 Investments in own shares –
17 Reciprocal cross-holdings in ordinary shares of financial institutions –
18 Investments in ordinary shares of unconsolidated financial institutions
in which the Reporting Bank does not hold a major stake –
in which the Reporting Bank holds a major stake (including
insurance subsidiaries) (amount above 10% threshold) 1,632 408 (p+r+t+v) - 2,8541
20 Mortgage servicing rights (amount above 10% threshold)
21 Deferred tax assets arising from temporary differences
(amount above 10% threshold, net of related tax liability)
22 Amount exceeding the 15% threshold –
23 of which: investments in ordinary shares of unconsolidated financial
institutions in which the Reporting Bank holds a major stake
(including insurance subsidiaries) –
24 of which: mortgage servicing rights
25 of which: deferred tax assets arising from temporary differences
26 National specific regulatory adjustments –
26A PE/VC investments held beyond the relevant holding periods set out
in MAS Notice 630 – –
26B Capital deficits in subsidiaries and associates that are regulated
financial institutions – –
26C Any other items which the Authority may specify – –
27 Regulatory adjustments applied in calculation of CET1 Capital due to
insufficient AT1 Capital to satisfy required deductions –
28 Total regulatory adjustments to CET1 Capital 5,360
29 Common Equity Tier 1 capital (“CET1”) 26,907

4.2 REGULATORY CAPITAL POSITION (Continued)
S$’m
Additional Tier 1 capital: instruments
30 AT1 capital instruments and share premium (if applicable) 499 c
31 of which: classified as equity under the Accounting Standards 499
32 of which: classified as liabilities under the Accounting Standards –
33 Transitional: Ineligible capital instruments (pursuant to
paragraphs 6.5.3 and 6.5.4) 2,397 (b+f) 2
34 AT1 capital instruments issued by fully-consolidated subsidiaries that
meet criteria for inclusion 89 h+j
35 of which: instruments issued by subsidiaries subject to phase out 59 j
36 Additional Tier 1 capital before regulatory adjustments 2,985
Additional Tier 1 capital: regulatory adjustments
37 Investments in own AT1 capital instruments –
38 Reciprocal cross-holdings in AT1 capital instruments of
financial institutions –
39 Investments in AT1 capital instruments of unconsolidated
financial institutions in which the Reporting Bank
does not hold a major stake –
40 Investments in AT1 capital instruments of unconsolidated financial
(including insurance subsidiaries) – –
41 National specific regulatory adjustments 932
41A Regulatory adjustments applied to AT1 Capital in respect of amounts
subject to pre- Basel III treatment 932
of which: Goodwill, net of associated deferred tax liability 798
of which: Intangible assets, net of associated deferred tax liability 67
of which: Deferred tax assets that rely on future profitability 66
of which: Cash flow hedge reserve (0)
of which: Increase in equity capital resulting from
securitisation transactions –
of which: Unrealised fair value gains/losses on financial liabilities and
derivative liabilities arising from changes in own credit risk –
of which: Shortfall of TEP relative to EL under IRBA –
of which: PE/VC investments held beyond the relevant holding periods
set out in MAS Notice 630 –
of which: Capital deficits in subsidiaries and associates that are
regulated financial institutions –
of which: Investments in ordinary shares of unconsolidated financial
(incl insurance subsidiaries) –
of which: Investments in Tier 2 capital instruments of unconsolidated
financial institutions in which the Reporting Bank holds a major
stake (incl insurance subsidiaries) –
41B Any other items which the Authority may specify –
42 Regulatory adjustments applied in calculation of AT1 Capital due to
insufficient Tier 2 Capital to satisfy required deductions –
43 Total regulatory adjustments to Additional Tier 1 capital 932
44 Additional Tier 1 capital (“AT1”) 2,053
45 Tier 1 capital (T1 = CET1 + AT1) 28,960


S$’m
Tier 2 capital: instruments and provisions
46 Tier 2 capital instruments and share premium (if applicable) 2,688 k
47 Transitional: Ineligible capital instruments (pursuant to
paragraphs 6.5.3 and 6.5.4) 1,337 l2
48 Tier 2 capital instruments issued by fully-consolidated subsidiaries
that meet criteria for inclusion 18 m
49 of which: instruments issued by subsidiaries subject to phase out 0
50 Provisions 630 n
51 Tier 2 capital before regulatory adjustments 4,673
Tier 2 capital: regulatory adjustments
52 Investments in own Tier 2 instruments 0 o
53 Reciprocal cross-holdings in Tier 2 capital instruments of
financial institutions –
54 Investments in Tier 2 capital instruments of unconsolidated
financial institutions in which the Reporting Bank does not
hold a major stake –
55 Investments in Tier 2 capital instruments of unconsolidated financial
institutions inwhich the Reporting Bank holds a major stake
(including insurance subsidiaries) – –
56 National specific regulatory adjustments 408
56A Any other items which the Authority may specify –
56B Regulatory adjustments applied to Tier 2 Capital in respect of
amounts subject to pre-Basel III treatment 408
of which: Shortfall of TEP relative to EL under IRBA –
of which: PE/VC investments held beyond the relevant holding periods
set out in MAS Notice 630 –
of which: Capital deficits in subsidiaries and associates that are
regulated financial institutions –
of which: Investments in ordinary shares of unconsolidated financial
(incl insurance subsidiaries) 408
of which: Investments in AT1 capital instruments of unconsolidated
financial institutions in which the Reporting Bank holds a major
stake (incl insurance subsidiaries) –
57 Total regulatory adjustments to Tier 2 capital 408
58 Tier 2 capital (“T2”) 4,264
59 Total capital (TC = T1 + T2) 33,225
60 Floor–adjusted total risk weighted assets (after incorporating the
floor adjustment set out in Table 11-3A(m)) 193,082

S$’m
Capital ratios (as a percentage of floor-adjusted risk
weighted assets)
61 Common Equity Tier 1 CAR 13.9%
62 Tier 1 CAR 14.9%
63 Total CAR 17.2%
64 Bank-specific buffer requirement 7.9%
65 of which: capital conservation buffer requirement 1.25%
66 of which: bank specific countercyclical buffer requirement 0.2%
67 of which: G-SIB buffer requirement (if applicable) –
68 Common Equity Tier 1 available to meet buffers 7.2%
National minima
69 Minimum CET1 CAR 6.5%
70 Minimum Tier 1 CAR 8.0%
71 Minimum Total CAR 10.0%
Amounts below the thresholds for deduction (before risk weighting)
72 Investments in ordinary shares, AT1 capital and Tier 2 capital of
unconsolidated financial institutions in which the Reporting Bank
does not hold a major stake 602 q+s
in which the Reporting Bank holds a major stake (including
insurance subsidiaries) 2,854 Refer to note1
74 Mortgage servicing rights (net of related tax liability)
75 Deferred tax assets arising from temporary differences
(net of related tax liability)
Applicable caps on the inclusion of provisions in Tier 2
76 Provisions eligible for inclusion in Tier 2 in respect of exposures subject
to standardised approach (prior to application of cap) 378
77 Cap on inclusion of provisions in Tier 2 under
standardised approach 513
78 Provisions eligible for inclusion in Tier 2 in respect of exposures subject
to internal ratings-based approach (prior to application of cap) 253
79 Cap for inclusion of provisions in Tier 2 under internal
ratings-based approach 641
Capital instruments subject to phase-out arrangements
(only applicable between 1 Jan 2013 and 1 Jan 2022)
80 Current cap on CET1 instruments subject to phase
out arrangements
81 Amount excluded from CET1 due to cap (excess over cap after
redemptions and maturities)
82 Current cap on AT1 instruments subject to phase out arrangements 2,477
83 Amount excluded from AT1 due to cap (excess over cap after
redemptions and maturities) 155
84 Current cap on T2 instruments subject to phase out arrangements 2,246
85 Amount excluded from T2 due to cap (excess over cap after
redemptions and maturities) –
(1)
The investments in the ordinary shares of unconsolidated major stake companies that are financial institutions which are within the prescribed
threshold amount in accordance with MAS Notice 637 paragraph 6.1.3 (p)(iii)
(2)
Under Basel III transitional arrangements, outstanding Additional Tier 1 and Tier 2 capital instruments that do not meet the requirements are
gradually phased out. Fixing the base at the nominal amount of such instruments outstanding at 1 January 2013, the recognition shall be capped at
90% in 2013, with the cap reducing by 10 percentage points in each subsequent year. To the extent a capital instrument is redeemed or amortised
after 1 January 2013, the nominal amount serving as the base is not reduced

4.3 MAIN FEATURES OF CAPITAL INSTRUMENTS

The following disclosures are made pursuant to the requirements of MAS Notice 637 Annex 11D. They are not a summary of the terms, do not purport
to be complete, and should be read in conjunction with, and are qualified in their entirety by, the relevant Terms and Conditions available on the Bank’s
Investor Relations website (http://www.ocbc.com/group/investors/Cap_and_Reg_Disclosures.html).
OCBC 3.8%
OCBC ORDINARY NON-CUMULATIVE, NON-CONVERTIBLE
SHARES PERPETUAL CAPITAL SECURITIES
1 Issuer Oversea-Chinese Banking Oversea-Chinese Banking Corporation Limited
Corporation Limited
2 Unique identifier (ISIN) SG1S04926220 SG6YJ3000003
3 Governing law(s) of instrument Singapore Singapore
Regulatory treatment
4 Transitional Basel III rules Common Equity Tier 1 Additional Tier 1
5 Post-transitional Basel III rules Common Equity Tier 1 Additional Tier 1
6 Eligible at Solo/Group/Solo and Group Solo and Group Solo and Group
7 Instrument type Ordinary shares Perpetual Capital Securities
8 Amount recognised in regulatory capital S$14,136 million S$499 million
9 Par value of instrument NA S$500 million
10 Accounting classification Shareholders’ equity Shareholders’ equity
11 Original date of issuance NA 25 Aug 2015
12 Perpetual or dated Perpetual Perpetual
13 Original maturity date No maturity No maturity
14 Issuer call subject to prior supervisory approval No Yes
15 Optional call date, contingent call dates and NA On or after the First Reset Date of 25 Aug 2020 (at par)
redemption amount Tax call (at par)
Regulatory call (at par)
16 Subsequent call dates, if applicable NA Optional call dates - any date after the First Reset Date
Coupons/dividends
17 Fixed or floating dividend/coupon NA Fixed to fixed
18 Coupon rate and any related index NA 3.8% p.a. up to (but excluding) 25 August 2020; if not redeemed,
the distribution rate will be reset every 5 years thereafter
to a fixed rate equal to the then prevailing 5-year SGD SOR
plus 1.51% p.a.
19 Existence of a dividend stopper NA Yes
20 Fully discretionary, partially discretionary or mandatory NA Fully discretionary
21 Existence of step up or other incentive to redeem NA No
22 Noncumulative or cumulative NA Noncumulative
23 Convertible or non-convertible NA Nonconvertible
24 If convertible, conversion trigger(s) NA NA
25 If convertible, fully or partially NA NA
26 If convertible, conversion rate NA NA
27 If convertible, mandatory or optional conversion NA NA
28 If convertible, specify instrument type convertible into NA NA
29 If convertible, specify issuer of instrument it converts into NA NA
30 Write-down feature No Yes
31 If write-down, write-down trigger(s) NA The earlier of:
i) the MAS notifying the Issuer in writing that it is of the
opinion that a Write-off is necessary, without which the
Issuer would become non-viable; and
ii) a decision by the MAS to make a public sector injection of
capital, or equivalent support, without which the Issuer
would have become non-viable, as determined by the MAS.
32 If write-down, full or partial NA May be written down fully or partially
33 If write-down, permanent or temporary NA Permanent
34 If temporary write-down, description of NA NA
write-up mechanism
35 Position in subordination hierarchy in liquidation Additional Tier 1 capital Upon the occurrence of any winding-up proceeding
(specify instrument type immediately senior to instruments of OCBC Bank (other than pursuant to a Permitted Reorgnisation),
instrument in the insolvency creditor hierarchy of Capital Securities are expressly subordinated and subject in
the legal entity concerned) right of payment to the prior payment in full of all claims of
(i) Senior Creditors and (ii) holders of Tier II Capital Securities, and
will rank senior to all Junior Obligations.
36 Non-compliant transitioned features No No
37 If yes, specify non-compliant features NA NA

4.3 MAIN FEATURES OF CAPITAL INSTRUMENTS (Continued)
OCBC CLASS M 4.0% OCC 5.1%

NON-CUMULATIVE NON-CUMULATIVE
NON-CONVERTIBLE NON-CONVERTIBLE
PREFERENCE SHARES GUARANTEED PREFERENCE SHARES
1 Issuer Oversea-Chinese Banking OCBC Capital Corporation (2008)
Corporation Limited
2 Unique identifier (ISIN) SG6V63983492 KYG668911053
3 Governing law(s) of instrument Singapore Cayman Islands
(In respect of the guaranteed preference shares)
Singapore
(In respect of the subordinated guarantee and
subordinated note)
4 Transitional Basel III rules Additional Tier 1 Additional Tier 1
5 Post-transitional Basel III rules Ineligible Ineligible
7 Instrument type Preference shares Guaranteed preference shares
8 Amount recognised in regulatory capital S$959 million S$1,438 million
9 Par value of instrument S$1,000 million S$1,500 million
10 Accounting classification Shareholders’ equity Non-controlling interest in consolidated subsidiary
11 Original date of issuance 17 Jul 2012 27 Aug 2008
12 Perpetual or dated Perpetual Perpetual
13 Original maturity date No maturity No maturity
14 Issuer call subject to prior supervisory approval Yes Yes
15 Optional call date, contingent call dates and First call date: First call date:
redemption amount 17 Jan 2018 (at par) 20 Sep 2018 (at par)
Tax call (at par) Tax call (at par)
Regulatory call (at par) Regulatory call (at par)
16 Subsequent call dates, if applicable 17 Jul 2022, and 20 Jun and 20 Mar, 20 Jun, 20 Sep and 20 Dec of each year after the first
20 Dec of each year thereafter call date
Coupons/dividends
17 Fixed or floating dividend/coupon Fixed Fixed to floating
18 Coupon rate and any related index 4.0% p.a. 5.1% p.a. up to 20 Sep 2018, and 3M SGD SOR plus
2.5% p.a. thereafter
19 Existence of a dividend stopper Yes Yes
20 Fully discretionary, partially discretionary or mandatory Fully discretionary Fully discretionary
21 Existence of step up or other incentive to redeem No Yes
22 Noncumulative or cumulative Noncumulative Noncumulative
23 Convertible or non-convertible Nonconvertible Nonconvertible
29 If convertible, specify issuer of instrument it NA NA
converts into
30 Write-down feature No No
31 If write-down, write-down trigger(s) NA NA
32 If write-down, full or partial NA NA
33 If write-down, permanent or temporary NA NA
write-up mechanism
35 Position in subordination hierarchy in liquidation (specify Tier 2 capital instruments of Tier 2 capital instruments of OCBC Bank
instrument type immediately senior to instrument in the OCBC Bank
insolvency creditor hierarchy of the legal entity concerned)
36 Non-compliant transitioned features Yes Yes
37 If yes, specify non-compliant features Has no loss absorbency at the Has no loss absorbency at the point of non-viability
point of non-viability Has a step-up

OCBC MALAYSIA 6.75% OCBC 4.25%

INNOVATIVE TIER 1 SUBORDINATED NOTES
CAPITAL SECURITIES DUE 2024
1 Issuer OCBC Bank (Malaysia) Berhad Oversea-Chinese Banking Corporation Limited
2 Unique identifier (ISIN) MYBPZ0900079 US69033DAC11 (Reg S)
3 Governing law(s) of instrument Malaysia US69033CAC38 (144A)
England
(Save for the subordination provisions)
Singapore
(In respect of the subordination provisions)
4 Transitional Basel III rules Additional Tier 1 Tier 2
5 Post-transitional Basel III rules Ineligible Tier 2
6 Eligible at Solo/Group/Solo and Group Group Solo and Group
7 Instrument type Capital securities Subordinated debt
8 Amount recognised in regulatory capital S$59 million S$1,357 million
9 Par value of instrument MYR400 million US$1,000 million
10 Accounting classification Liabilities - amortised cost Liabilities - amortised cost
11 Original date of issuance 17 Apr 2009 19 Jun 2014
12 Perpetual or dated Perpetual1 Dated
13 Original maturity date No maturity1 19 Jun 2024
15 Optional call date, contingent call dates and First call date: Tax call (at par)
redemption amount 17 Apr 2019 (at par)
Tax call (at par) Regulatory call (at par)
16 Subsequent call dates, if applicable 17 Apr and 17 Oct of each year NA
after the first call
Coupons/dividends
17 Fixed or floating dividend/coupon Fixed to floating Fixed
18 Coupon rate and any related index 6.75% p.a. up to 17 Apr 2019, and 4.25% p.a.
6M KLIBOR plus
3.32% p.a. thereafter
19 Existence of a dividend stopper Yes NA
20 Fully discretionary, partially discretionary Fully discretionary Mandatory
or mandatory
21 Existence of step up or other incentive to redeem Yes No
22 Noncumulative or cumulative Cumulative2 NA
28 If convertible, specify instrument type NA NA
convertible into
converts into
30 Write-down feature No Yes
31 If write-down, write-down trigger(s) NA Contractual approach
The earlier of (i) MAS determining that a write-down is
necessary; and (ii) a decision by MAS to make a public
sector injection of capital, or equivalent support,
without which the issuer would become non-viable
in both (i) and (ii)
32 If write-down, full or partial NA May be written down fully or partially
33 If write-down, permanent or temporary NA Permanent
write-up mechanism
35 Position in subordination hierarchy in liquidation Tier 2 capital instruments of Unsubordinated and unsecured obligations of OCBC Bank
(specify instrument type immediately senior to instrument in OCBC Malaysia
the insolvency creditor hierarchy of
the legal entity concerned)
36 Non-compliant transitioned features Yes No
37 If yes, specify non-compliant features Has no loss absorbency NA
when CET1 CAR falls to 7%
or below, and at the point
of non-viability
Has a step-up
(1)
edemption of the capital securities after 30 years from the issue date, if still outstanding then, is subject to regulatory approval being obtained
R
and may only be made
Payment of any deferred coupon amount is subject to regulatory approval being obtained and may only be made from the proceeds of a fresh issuance of
(2)
preference shares. In addition, payment of any deferred coupon amount in excess of the specified limit is subject to regulatory approval.

OCBC 4.00% OCBC 3.15%

SUBORDINATED NOTES SUBORDINATED NOTES
DUE 2024 CALLABLE IN 2019 DUE 2023 CALLABLE IN 2018
1 Issuer Oversea-Chinese Banking Corporation Limited Oversea-Chinese Banking Corporation
Limited
2 Unique identifier (ISIN) US69033DAB38 (Reg S) US69033DAA54 (Reg S)
US69033CAB54 (144A) US69033CAA71 (144A)
3 Governing law(s) of instrument England England
(Save for the subordination provisions) (Save for the subordination provisions)
Singapore Singapore
(In respect of the subordination provisions) (In respect of the subordination provisions)
4 Transitional Basel III rules Tier 2 Tier 2
5 Post-transitional Basel III rules Tier 2 Ineligible
7 Instrument type Subordinated debt Subordinated debt
8 Amount recognised in regulatory capital S$1,330 million S$1,337 million
9 Par value of instrument US$1,000 million US$1,000 million
10 Accounting classification Liabilities - amortised cost Liabilities - amortised cost
11 Original date of issuance 15 Apr 2014 11 Sep 2012
12 Perpetual or dated Dated Dated
13 Original maturity date 15 Oct 2024 11 Mar 2023
15 Optional call date, contingent call dates and First call date: First call date:
redemption amount 15 Oct 2019 (at par) 11 Mar 2018 (at par)
Tax call (at par) Tax call (at par)
16 Subsequent call dates, if applicable NA NA
Coupons/dividends
17 Fixed or floating dividend/coupon Fixed to fixed Fixed to fixed
18 Coupon rate and any related index 4.00% p.a. up to 15 Oct 2019, and reset to 3.15% p.a. up to 11 Mar 2018, and reset to
5-yr US Dollar Swap Rate plus 2.203% p.a. 5-yr US Dollar Swap Rate plus 2.279% p.a.
thereafter thereafter
19 Existence of a dividend stopper NA NA
20 Fully discretionary, partially discretionary or mandatory Mandatory Mandatory
21 Existence of step up or other incentive to redeem No No
22 Noncumulative or cumulative NA NA
converts into
30 Write-down feature Yes No
31 If write-down, write-down trigger(s) Contractual approach NA
The earlier of (i) MAS determining that a write-
down is necessary; and (ii) a decision by MAS
to make a public sector injection of capital, or
equivalent support, without which the issuer
would become non- viable in both (i) and (ii)
32 If write-down, full or partial May be written down fully or partially NA
33 If write-down, permanent or temporary Permanent NA
write-up mechanism
35 Position in subordination hierarchy in liquidation (specify Unsubordinated and unsecured obligations Unsubordinated and unsecured obligations
instrument type immediately senior to instrument in the of OCBC Bank of OCBC Bank
insolvency creditor hierarchy of the legal entity concerned)
36 Non-compliant transitioned features No Yes
37 If yes, specify non-compliant features NA Has no loss absorbency at the point of
non-viability

5. LEVERAGE RATIO
5.1 LEVERAGE RATIO
31-Dec-17 30-Sep-17 30-Jun-17 31-Mar-17

Capital and Total exposures (S$’m)
Tier 1 capital 28,960 29,694 29,684 29,558
Total exposures 394,770 387,576 380,558 380,068
Leverage Ratio (%)
Leverage ratio 7.3 7.6 7.8 7.7
Leverage ratio was lower at 7.3% as at 31 December 2017, as compared to 7.6% in previous quarter. Tier 1 capital was lower after taking
into account MAS Notice 637 amended definition of insurance subsidiary with effect from 31 December 2017. Total exposures rose
mainly driven by growth in customer loans, and increase in placements with banks and central banks partly offset by the decrease in
off-balance sheet items.
5.2 LEVERAGE RATIO SUMMARY COMPARISON TABLE
Item Amount
(S$’m)
1 Total consolidated assets as per published financial statements 454,938
2 Adjustment for investments in entities that are consolidated for accounting purposes but (82,848)
are outside the regulatory scope of consolidation
3 Adjustment for fiduciary assets recognised on the balance sheet in accordance with the –
Accounting Standards but excluded from the calculation of exposure measure
4 Adjustment for derivative transactions 3,681
5 Adjustment for SFTs 11
6 Adjustment for off-balance sheet items 25,280
7 Other adjustments (6,292)
8 Exposure measure 394,770

5.3 LEVERAGE RATIO COMMON DISCLOSURE TABLE
Amount (S$’m)
Item Dec-17 Sep-17
Exposure measures of on-balance sheet items
1 On-balance sheet items (excluding derivative transactions and SFTs, but including 361,198 354,810
on-balance sheet collateral for derivative transactions or SFTs)
2 Asset amounts deducted in determining Tier 1 capital (6,292) (10,220)
3 Total exposures measures of on-balance sheet items 354,906 344,590
(excluding derivative transactions and SFTs)
Derivative exposure measures
4 Replacement cost associated with all derivative transactions 3,615 3,565
(net of the eligible cash portion of variation margins)
5 Potential future exposure associated with all derivative transactions 5,691 5,583
6 Gross-up for derivative collaterals provided where deducted from the – –
balance sheet assets in accordance with the Accounting Standards
7 Deductions of receivables for the cash portion of variation margins (21) (20)
provided in derivative transactions
8 CCP leg of trade exposures excluded – –
9 Adjusted effective notional amount of written credit derivatives 781 908
10 Further adjustments in effective notional amounts and deductions from – –
potential future exposures of written credit derivatives
11 Total derivative exposure measures 10,066 10,036
SFT exposure measures
12 Gross SFT assets (with no recognition of accounting netting), 4,507 3,487
after adjusting for sales accounting
13 Eligible netting of cash payables and cash receivables – –
14 SFT counterparty exposures 11 15
15 SFT exposure measures where a Reporting Bank acts as an agent in the SFTs – –
16 Total SFT exposure measures 4,518 3,502
Exposure measures of off-balance sheet items
17 Off-balance sheet items at notional amount 114,099 153,080
18 Adjustments for calculation of exposure measures of off-balance sheet items (88,819) (123,632)
19 Total exposure measures of off-balance sheet items 25,280 29,448
Capital and Total exposures
20 Tier 1 capital 28,960 29,694
21 Total exposures 394,770 387,576
Leverage Ratio
22 Leverage ratio 7.3% 7.6%
SFT: Securities Financing Transactions

CCP: Central Counterparty

6. CREDIT RISK EXPOSURES BY Analysed by Industry

S$ million
GEOGRAPHY, INDUSTRY AND Agriculture, mining and quarrying 8,073
RESIDUAL MATURITY Manufacturing 12,501
Building and construction 35,436
6.1 MAXIMUM EXPOSURE TO CREDIT RISK
Housing 64,542
General commerce 29,010
S$ million Period End Average (3)
Transport, storage and communication 11,568
Credit risk exposure of on-balance
Financial institutions, investment
sheet assets:
and holding companies 37,838
Net loans and bills receivable 234,141 (1) 224,653
Professionals and individuals 28,704
Placements with and loans to banks 49,377 43,996
Others 9,649
Government treasury bills and securities 27,471 26,976
Total 237,321
Debt securities 21,407 21,115
Assets pledged 1,056 (2) 1,915 (1)
Include assets pledged of $527 million.
Others 10,580 10,035
344,032 328,690 Placements with and Loans to Banks (2)
Analysed by Geography
Credit risk exposure of off-balance
sheet items: S$ million
Credit commitments 128,848 122,375 Singapore 1,390

Contingent liabilities 10,504 10,275 Malaysia 4,594
139,352 132,650 Indonesia 819
Greater China 34,472
Total maximum credit risk exposure 483,384 461,340 Other Asia Pacific 3,774
(1)
Net of specific allowances of $1,236 million and portfolio allowances Rest of the World 3,675
of $1,417 million. Balances with banks 48,724
(2)
Comprise net loans and bills receivable of $527 million, placements Bank balances of life assurance fund 848
with and loans to banks of $195 million, government treasury bills Total 49,572
and securities of $6 million and debt securities of $328 million.
(3)
Computed on a monthly average basis. (2)
6.2 GEOGRAPHIC/INDUSTRY DISTRIBUTION OF MAJOR Distribution by geography is determined based on where the
TYPES OF CREDIT EXPOSURE credit risk resides.
Gross Loans and Bills Receivable (1) Government Treasury Bills and Securities (3)
Analysed by Geography Analysed by Geography
S$ million S$ million
Singapore 99,872 Singapore 9,840
Malaysia 28,231 Malaysia 2,751
Indonesia 19,259 Indonesia 2,806
Greater China 59,114 Greater China 4,049
Other Asia Pacific 12,754 Other Asia Pacific 5,297
Rest of the World 18,091 Rest of the World 2,734
Total 237,321 Total 27,477
Distribution by geography is determined based on where the

(3)
credit risk resides.
Distribution by geography is determined based on country
of the issuer.

Debt Securities (4) Analysed by Industry
Analysed by Geography S$ million
S$ million Agriculture, mining and quarrying 1,259
Singapore 2,752 Manufacturing 8,531
Malaysia 1,838 Building and construction 14,894
Indonesia 1,040 General commerce 17,371
Greater China 10,249 Transport, storage and communication 3,159
Other Asia Pacific 3,911 Financial institutions, investment and
Rest of the World 1,945 holding companies 33,843
Total 21,735 Professionals and individuals 42,855
Others 6,936
Distribution by geography is determined based on where the Total 128,848
borrowers are incorporated.
Contingent Liabilities
Analysed by Industry
Analysed by Geography
S$ million
S$ million
Agriculture, mining and quarrying 808
Singapore 5,819
Manufacturing 1,230
Malaysia 1,261
Building and construction 2,155
Indonesia 1,155
General commerce 569
Greater China 1,842
Transport, storage and communication 1,390
Other Asia Pacific 301
Financial institutions, investment and
Rest of the World 126
holding companies 12,835
Total 10,504
Others 2,748
Total 21,735 Distribution by geography is determined based on where the
transactions are recorded.
(4)
Credit Commitments Analysed by Industry

Analysed by Geography S$ million
S$ million Agriculture, mining and quarrying 83
Singapore 97,873 Manufacturing 1,748
Malaysia 7,176 Building and construction 1,623
Indonesia 3,891 General commerce 3,932
Greater China 15,970 Transport, storage and communication 624
Other Asia Pacific 2,105 Financial institutions, investment and
Rest of the World 1,833 holding companies 486
Total 128,848 Professionals and individuals 302
Others 1,706
Distribution by geography is determined based on where the Total 10,504
transactions are recorded.
6.3 RESIDUAL CONTRACTUAL MATURITY OF MAJOR TYPES OF CREDIT EXPOSURE
On-Balance Sheet Assets

Within 1 week to 1 to 3 3 to 12 1 to 3 Over
S$ million 1 week 1 month months months years 3 years Total
Net loans and bills receivables 17,535 28,022 20,589 29,257 36,861 102,404 234,668 (1)
Placements with and loans to banks 7,770 8,208 14,329 16,583 1,216 618 48,724 (2)
Government treasury bills and securities 426 2,244 4,419 9,802 6,035 4,551 27,477 (3)
Debt securities 99 479 988 4,490 6,592 9,087 21,735 (4)
(1)
(2)
Include assets pledged of $195 million and excludes bank balances of life assurance fund.
(3)
(4)

Credit Commitments The increase in defaulted loans and bills receivable, and debt
S$ million securities in the second half of 2017 was mainly driven by new
Undrawn credit facilities: defaulted loans and bills receivable that was partly offset by
Term to maturity of one year or less 111,902 write-offs and upgrades.
Term to maturity of more than one year 16,946
(a)
Total 128,848
Amount
S$ million outstanding
Contingent Liabilities 1 Defaulted loans and bills receivable, and
S$ million debt securities as at 30 June 2017 2,897
Guarantees and standby letters of credit: 2 Loans and bills receivable, and debt securities that
Term to maturity of one year or less 3,935 have defaulted in the second half of 2017 2,013
Term to maturity of more than one year 2,196 3 Return to non-defaulted status (511)
6,131 4 Amounts written-off (602)
Acceptances and endorsements 1,283 5 Other changes (1) (347)
Documentary credits and other short-term trade 6 Defaulted loans and bills receivable, and
related transactions 3,090 debt securities as at 31 December 2017
Total 10,504 (1 + 2 - 3 - 4 ± 5) 3,450
(1)
Other changes comprise foreign exchange, increase in existing
7. CREDIT QUALITY defaulted loans and bills receivable, and recoveries
7.1 OVERVIEW OF CREDIT QUALITY OF ASSETS 7.3 OVERVIEW OF PAST DUE EXPOSURE AND
IMPAIRMENT ALLOWANCES
The table below provides an overview of the credit quality of the
on and off-balance sheet assets of the Group. The following tables provide a breakdown of defaulted loans
and bills receivable (“Non-Performing Loans”) by geography,
A borrower is recognised to be in default when the borrower credit grade under MAS Notice 612 and industry. In addition,
is unlikely to repay in full its credit obligations to the Group, or under FRS 107, loans and bill receivable that are past due and
the borrower is past due for more than 90 days on its credit not impaired need to be separately identified and disclosed.
obligations to the Group. Past due loans refer to loans that are overdue by one day or
more, while impaired loans are classified as loans with specific
(a) (b) (c) (d) allowances made.
Gross carrying
amount of (1) The Group assesses impairment of loans by calculating the
Non- present value of future recoverable cash flows and the fair
Defaulted defaulted Impairment Net Values (2)
S$ million exposures exposures allowances (a + b - c) value of the underlying collateral, which is determined via credit
1 Loans and bills assessment on an individual loan basis. For the assessment of
receivable 3,415 233,906 (2,649) 234,672 available-for-sale financial assets, the Group follows the guidance
2 Debt securities 35 21,713 (13) 21,735 of FRS 39 in determining when an investment is impaired.
3 Off-balance sheet
Total Loans and Bills Receivables – Credit Quality
exposures 18 10,486 (4) 10,500
S$ million
4 Total 3,468 266,105 (2,666) 266,907
Neither past due nor impaired 232,020
(1)
Refers to the accounting value of the assets before any impairment Not impaired 2,742
allowances but after write-offs Impaired 1,208
(2)
Refers to total gross carrying amount less impairment allowances Past due loans 3,950
Impaired but not past due 1,351
7.2 CHANGES IN STOCK OF DEFAULTED LOANS AND
Gross loans 237,321
BILLS RECEIVABLE, AND DEBT SECURITIES
Specific allowances (1,236)
The table below identifies the changes in defaulted loans and Portfolio allowances (1,417)
bills receivable as well as debt securities from the previous Net loans 234,668
semi-annual reporting period, including the flows between
non-defaulted and defaulted categories and reductions due to
write-offs.

Non-Performing Loans Impairment Allowances for Loans and Bills Receivable,
Analysed by Geography and Debt Securities
Rest Analysed by Geography
Greater of the Portfolio
S$ million Singapore Malaysia Indonesia China World Total Specific Allowances Allowances
Substandard 760 483 398 74 609 2,324 Loans
Doubtful 180 332 29 110 42 693 Debt and Bills
S$ million Securities Receivables Total
Loss 146 42 161 48 1 398
Singapore 12 308 320 444
Total 1,086 857 588 232 652 3,415
Malaysia – 340 340 278
Indonesia – 232 232 184
credit risk resides. Greater China – 61 61 367
Other Asia Pacific – 111 111 83
Analysed by Industry Rest of the World 1 184 185 61
S$ million Total 13 1,236 1,249 1,417
Agriculture, mining and quarrying 305
Manufacturing 304 Distribution by geography is determined based on where the
Building and construction 59
Housing 392
General commerce 291
Specific Allowances
Transport, storage and communication 1,277 Loans
Financial institutions, investment and holding companies 376 Debt and Bills
S$ million Securities Receivables Total
Professionals and individuals 146
Others 265 Agriculture, mining and quarrying – 134 134
Total 3,415 Manufacturing – 63 63
Building and construction – 12 12
Analysed by Period Overdue Housing – 42 42
S$ million General commerce – 139 139
Over 180 days 1,212 Transport, storage and
Over 90 days to 180 days 257 communication – 499 499
30 days to 90 days 313 Financial institutions, investment
and holding companies 13 124 137
Less than 30 days 48
Professionals and individuals – 90 90
Past due 1,830
Others – 133 133
No overdue 1,585
Total 13 1,236 1,249
Total 3,415
Past-Due Loans
Analysed by Industry Specific Allowances Charged to Income Statement
Loans
S$ million
Debt and Bills
Agriculture, mining and quarrying 115 S$ million Securities Receivables Total
Manufacturing 303 Agriculture, mining and quarrying – 175 175
Building and construction 156 Manufacturing 16 93 109
General commerce 257 Building and construction – 48 48
Transport, storage and communication 469 Housing – 11 11
Financial institutions, investment and holding companies 358 General commerce – 92 92
Professionals and individuals (include housing) 2,074 Transport, storage and
Others 218 communication – 694 694
Total 3,950 Financial institutions, investment
and holding companies 16 130 146
Analysed by Geography Professionals and individuals – 52 52
S$ million Others – 112 112
Singapore 1,283 Total 32 1,407 1,439
Malaysia 822
Indonesia 742
Greater China 931
Rest of the World 172
Total 3,950


Reconciliation of Changes in Impairment Allowances 7.4 RESTRUCTURED EXPOSURES

Specific
S$ million Allowances Restructured exposures refer to exposures where the bank
At 1 January 2017 642 has granted concessions or restructured repayment terms
Currency translation (29) to borrowers who are facing difficulties in meeting original
Bad debts written off (786) repayment schedules. They are classified in the appropriate
Recovery of amounts previously provided for (65) non-performing grades and not restored to performing loan
Allowances for loans 1,504 status until the borrowers have demonstrated sustained ability
to meet all future obligations under the restructured terms.
Net allowances charged to income statements 1,439
Interest recognition on impaired loans (19)
The following table provides the breakdown of impaired and
Transfer from other assets 2
non-impaired restructured exposures.
At 31 December 2017 1,249
Non-
Portfolio Impaired impaired
S$ million Allowances S$ million Exposures Exposures
At 1 January 2017 2,241 Credit Quality of Restructured Exposures
Currency translation (38) Substandard 505 198
Allowances credited to income statements (786) Doubtful 206 5
At 31 December 2017 1,417 Loss 52 –
Passed/ Watchlist/ Special Mention – 577
Past-Due Loans Not Impaired
At 31 December 2017 763 780
These are loans and bills receivables that are past due but not
impaired as the collateral values of these loans are in excess of
the principal and interest outstanding. Allowances for these
loans may have been set aside on a portfolio basis.
The following table provides the ageing analysis of non-impaired

past due exposures in accordance with FRS 107.
Analysed by Period Overdue

S$ million
Past due
Less than 30 days 1,229
30 to 90 days 985
Over 90 days 528
Past due but not impaired 2,742

8. OVERVIEW OF RISK WEIGHTED ASSETS
The table below provides an overview of the Group’s total RWA, broken down by the approaches with which the RWA are computed, as
stipulated by MAS Notice 637.
(a) (b) (c)

Minimal Capital
RWA Requirements (1)
S$ million Dec-17 Sep-17 Dec-17
1 Credit Risk (excluding Counterparty Credit Risk) 147,035 155,613 14,703
2 Of which: Standardised Approach for Credit and Equity exposures 40,892 55,672 4,089
3 Of which: IRB Approach for Credit and Equity exposures (2) 106,143 99,941 10,614
4 Credit Risk: Counterparty Credit Risk 4,674 4,961 467
5 Of which: Current Exposure Method (3) 4,674 4,961 467
6 Of which: Internal Models Method – – –
7 Equity exposures under Simple Risk Weight Method 1,305 5,443 131
8 Equity investments in funds - Look Through Approach – – –
9 Equity investments in funds - Mandate-Based Approach – – –
10 Equity investments in funds - Fall Back Approach 3,212 3,347 321
10a Equity investments in funds - Partial Use of an Approach – – –
11 Unsettled Transactions # 2 #
12 Securitisation exposures in banking book – – –
13 Of which: Ratings-Based and Internal Assessment Methods – – –
14 Of which: Supervisory Formula – – –
15 Of which: Standardised Approach – – –
16 Market Risk 16,130 20,475 1,613
17 Of which: Standardised Approach 16,130 20,475 1,613
18 Of which: Internal Models Approach – – –
19 Operational Risk 13,591 13,397 1,359
20 Of which: Basic Indicator Approach 2,663 2,592 266
21 Of which: Standardised Approach 10,928 10,805 1,093
22 Of which: Advanced Measurement Approach – – –
23 Credit RWA pursuant to paragraph 6.1.3(p)(iii) (4) 7,135 8,134 714
24 Floor Adjustment – – –
25 Total 193,082 211,372 19,308
(1)
Minimum capital requirements are calculated at 10% of RWA.
(2)
Refers to Equity exposures under the Probability of Default (“PD”)/Loss Given Default (“LGD”) Method.
(3)
CCR RWA includes RWA attributed to Credit Valuation Adjustments (“CVA”) and Central Counterparties (“CCP”).
(4)
Refers to Credit RWA attributed to investments in the ordinary shares of unconsolidated major stake companies that are financial institutions,
within the prescribed threshold amount in accordance with MAS Notice 637 paragraph 6.1.3 (p)(iii)
# represents amounts of less than $0.5 million
The decrease in RWA between September 2017 and December 2017 was largely attributed to lower Credit and Market Risk RWA:
– Credit RWA decreased primarily due to the migration of Margin Lending portfolio booked in Bank of Singapore from the
Standardised Approach to the IRB Approach. In addition, lower Equity Credit RWA and Credit RWA pursuant to paragraph
6.1.3(p)(iii) was because of the adoption of the amended definition of insurance subsidiary in accordance with MAS Notice 637
with effect from December 2017.
– Market Risk RWA decreased due to enhancements in the methodology for calculating RWA for Interest Rate and Foreign
Exchange risk

9. CREDIT EXPOSURES UNDER STANDARDISED AND IRB APPROACH

9.1 CREDIT EXPOSURES UNDER STANDARDISED APPROACH AND CRM EFFECTS
The following table illustrates the effects of credit risk mitigation (“CRM”) on the calculation of capital requirements for credit and
equity exposures under the Standardised approach.
In the second half of 2017, the majority of Sovereign and Margin Lending exposures migrated to IRB approach.
(a) (b) (c) (d) (e) (f)
Exposures before CCF and Exposures post-CCF and
CRM (1)
post-CRM (2)
On-Balance Off-Balance On-Balance Off-Balance

S$ million Sheet Sheet Sheet Sheet RWA RWA Density (3)
Asset Class
1 Cash Items 866 – 866 – 6 1%
2 Sovereign 3,128 – 3,128 – 436 14%
3 PSE 55 35 504 # 115 23%
4 MDB 36 101 36 6 – 0%
5 Bank 5,584 # 5,612 – 2,540 45%
6 Corporate 12,500 5,579 11,554 1,316 12,103 94%
7 Regulatory Retail 5,856 2,216 5,587 57 4,234 75%
8 Residential Mortgage 14,194 11 13,854 5 5,174 37%
9 Commercial Real Estate 9,930 1,853 9,909 183 10,109 100%
10 Equity exposures – – – – – NA
11 Past Due exposures 122 – 122 – 148 121%
12 Higher risk exposures – – – – – NA
13 Others (4) 6,319 846 5,989 37 6,027 100%
14 Total 58,590 10,641 57,161 1,604 40,892 70%
(1)

This refers to the regulatory exposure amount (net of impairment allowances and write offs where applicable) before the Credit Conversion Factor (“CCF”)
for off-balance sheet exposures and the recognised Credit Risk Mitigation (“CRM”) are applied.
(2)
This is the net credit equivalent amount, after taking into account the effects of CCFs and CRM.
(3)
Total RWA divided by the exposures post-CCF and post-CRM.
(4)
Includes other exposures not included in the above asset classes, such as fixed assets.
# Represents amounts of less than $0.5 million.
9.2 CREDIT EXPOSURES UNDER STANDARDISED APPROACH BY RISK WEIGHT

The following table provides a breakdown of credit risk exposures treated under the Standardised approach by asset class and risk
weight. The risk weight assigned corresponds to the level of risk attributed to each exposure.
(a) (b) (c) (d) (e) (f) (g) (h) (i) (j)
Risk Weight
S$ million 0% 10% 20% 35% 50% 75% 100% 150% Others – EAD (1)
Total
Asset Class
1 Cash Items 837 – 29 – – – – – – 866
2 Sovereign 2,257 – – – 871 – – – – 3,128
3 PSE 21 – 460 – – – 23 – – 504
4 MDB 42 – – – – – – – – 42
5 Bank – – 898 – 4,707 – 7 – – 5,612
6 Corporate – – 101 – 1,379 – 11,383 7 – 12,870
7 Regulatory Retail – – – – – 5,643 – 1 – 5,644
8 Residential Mortgage – – – 13,227 – 350 282 – – 13,859
9 Commercial Real Estate – – – – – – 10,057 35 – 10,092
10 Equity exposures – – – – – – – – – –
11 Past Due exposures – – – – – – 71 51 – 122
12 Higher risk exposures – – – – – – – – – –
13 Others (2) – – – – – – 6,026 – – 6,026
14 Total 3,157 – 1,488 13,227 6,957 5,993 27,849 94 – 58,765
(1)
otal EAD refers to both on and off-balance sheet amounts that are used for computing capital requirements, net of impairment allowances and write-offs
T
and after application of CRM and CCF.
(2)
Includes other exposures not included in the above asset classes, such as fixed assets.

9.3 CREDIT EXPOSURES UNDER FOUNDATION INTERNAL RATINGS-BASED APPROACH (“F-IRBA”)
The following table provides the main parameters used in the treatment of exposures for the calculation of capital requirements under
the F-IRBA.
At the end of 2017, the majority of the Sovereign exposures migrated to F-IRBA from the Standardised Approach.
(a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l)
On- Off- Average Number Average Average RWA Expected
Balance Balance Average EAD (3) PD (4) of LGD (4) Maturity (6) RWA Density (7) Losses TEP (8)
Sheet (1) Sheet (2) CCF (%) (S$ million) (%) Obligors (5) (%) (In years) (S$ million) (%) (S$ million) (S$ million)
Sovereign (S$ million)
PD Range
0.00 to < 0.15 36,442 167 100% 36,626 0.00% 23 45% 1.3 575 2% 1
0.15 to < 0.25 – – – – – – – – – NA –
0.25 to < 0.50 112 – 0% 112 0.37% 3 45% 3.4 84 75% #
0.50 to < 0.75 – – – – – – – – – NA –
0.75 to < 2.50 3 – 0% 3 1.90% 1 45% 1.0 3 100% #
2.50 to < 10.00 64 – 0% 64 6.42% 1 45% 1.0 99 155% 2
10.00 to < 100.00 – # – – – 1 – – – NA –
100.00 (Default) – – – – – – – – – NA –
Sub-total 36,621 167 100% 36,805 0.02% 29 45% 1.4 761 2% 3 7
Bank
PD Range
0.00 to < 0.15 42,507 2,014 3% 43,502 0.05% 223 45% 0.8 5,989 14% 10
0.15 to < 0.25 – – – – – – – – – NA –
0.25 to < 0.50 4,248 49 28% 6,059 0.37% 31 45% 0.9 3,493 58% 10
0.50 to < 0.75 4,402 69 71% 4,534 0.54% 22 45% 0.6 3,131 69% 11
0.75 to < 2.50 777 14 58% 784 1.13% 27 45% 0.6 749 96% 4
2.50 to < 10.00 107 6 42% 109 6.15% 24 40% 0.2 159 146% 3
10.00 to < 100.00 8 69 8% 8 11.10% 37 45% 0.6 17 205% #
100.00 (Default) # – 0% # 100.00% 1 45% 1.0 – 0% #
Sub-total 52,049 2,221 6% 54,996 0.16% 365 45% 0.8 13,538 25% 38 125
Corporate
PD Range
0.00 to < 0.15 32,293 31,213 19% 38,197 0.09% 850 44% 2.2 10,461 27% 16
0.15 to < 0.25 1 4 0% 1 0.18% 7 41% 3.9 1 49% #
0.25 to < 0.50 13,840 13,430 21% 16,561 0.37% 477 44% 1.9 9,388 57% 27
0.50 to < 0.75 6,955 7,730 21% 8,323 0.54% 519 43% 2.1 5,615 67% 19
0.75 to < 2.50 10,629 10,618 12% 10,445 1.48% 792 42% 2.0 10,140 97% 65
2.50 to < 10.00 5,113 3,388 24% 5,043 4.84% 315 43% 2.0 7,224 143% 105
10.00 to < 100.00 972 2,167 3% 973 14.40% 299 40% 2.9 1,992 205% 55
100.00 (Default) 1,825 16 45% 1,832 100.00% 150 44% 2.8 – 0% 804
Sub-total 71,628 68,566 18% 81,375 3.09% 3,409 43% 2.1 44,821 55% 1,090 1,372

9.3 CREDIT EXPOSURES UNDER FOUNDATION INTERNAL RATINGS-BASED APPROACH (“F-IRBA”) (Continued)
(a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l)
Corporate (IPRE) (S$ million)
PD Range
0.00 to < 0.15 1,925 115 53% 1,986 0.14% 12 45% 2.6 763 38% 1
0.15 to < 0.25 – – – – – – – – – NA –
0.25 to < 0.50 3,273 511 57% 3,564 0.37% 37 45% 2.1 2,102 59% 6
0.50 to < 0.75 6,301 1,532 50% 7,072 0.54% 80 45% 2.3 5,211 74% 17
0.75 to < 2.50 9,999 3,657 67% 12,378 1.40% 240 45% 2.4 13,272 107% 78
2.50 to < 10.00 1,597 622 34% 1,811 4.17% 131 45% 2.9 2,767 153% 34
10.00 to < 100.00 228 46 64% 257 11.25% 18 45% 1.5 516 201% 13
100.00 (Default) 2 – 0% 2 100.00% 1 45% 5.0 – 0% 1
Sub-total 23,325 6,483 59% 27,070 1.23% 519 45% 2.4 24,631 91% 150 227
Corporate Small Business

PD Range
0.00 to < 0.15 344 634 12% 416 0.12% 450 40% 3.0 131 31% #
0.15 to < 0.25 479 124 15% 498 0.16% 795 38% 4.3 199 40% #
0.25 to < 0.50 945 792 10% 1,025 0.37% 327 40% 3.5 640 62% 2
0.50 to < 0.75 655 822 12% 756 0.54% 603 40% 2.4 419 55% 2
0.75 to < 2.50 2,141 1,906 10% 2,260 1.44% 6,659 38% 2.1 1,712 76% 12
2.50 to < 10.00 1,847 1,017 9% 1,908 4.51% 683 37% 2.5 2,071 109% 32
10.00 to < 100.00 413 108 10% 423 12.28% 447 32% 2.5 559 132% 17
100.00 (Default) 1,307 3 1 1,309 100.00% 140 44% 2.3 – 0% 575
Sub-total 8,131 5,406 11% 8,595 17.32% 10,104 39% 2.6 5,731 67% 640 699
Total (all
portfolios) 191,754 82,843 21% 208,841 2.12% 14,426 44% 1.7 89,482 43% 1,921 2,430
(1)
On-balance sheet refers to the amount of the on-balance sheet exposure gross of impairment allowances (before taking into account the effect of CRM).
(2)
Off-balance sheet refers to the exposure value without taking into account valuation adjustments and impairment allowances, CCFs and the effect of CRM.
(3)
EAD refers to the amount relevant for the capital requirements calculation, after taking into account the effect of CCFs and CRM.
(4)
Refers to the PD and LGD associated with each obligor grade, weighted by EAD.
(5)
Number of obligors refers to the number of counterparties.
(6)
Refers to the effective maturity of the exposures to the obligor in years, weighted by EAD.
(7)
(8)
Refers to the total eligible provisions attributed to the respective portfolios.

9.4 CREDIT EXPOSURES UNDER ADVANCED INTERNAL RATINGS-BASED APPROACH (“A-IRBA”)
The following table provides the main parameters used in the treatment of exposures for the calculation of capital requirements under
the A-IRBA.
At the end of 2017, the Margin Lending portfolio booked in Bank of Singapore migrated to A-IRBA and is reflected under Other Retail
and Corporate asset classes.
(a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l)
Residential
Mortgage (S$ million)
PD Range
0.00 to < 0.15 2,370 708 67% 2,844 0.05% 11,195 10% 45 2% #
0.15 to < 0.25 12,673 898 75% 13,350 0.15% 36,044 10% 478 4% 3
0.25 to < 0.50 12,379 855 67% 12,949 0.25% 44,832 10% 682 5% 3
0.50 to < 0.75 14,065 653 70% 14,523 0.50% 49,361 11% 1,267 9% 8
0.75 to < 2.50 7,536 515 72% 7,909 1.02% 37,339 11% 1,160 15% 9
2.50 to < 10.00 4,007 158 76% 4,127 3.62% 12,660 11% 1,248 30% 16
10.00 to < 100.00 1,207 15 103% 1,223 23.12% 7,476 11% 762 62% 32
100.00 (Default) 402 9 0% 402 100.00% 2,598 15% 296 74% 53
Sub-total 54,639 3,811 71% 57,327 1.82% 201,505 11% 5,938 10% 124 109
Qualifying Revolving Retail

PD Range
0.00 to < 0.15 662 5,581 45% 3,157 0.06% 543,449 80% 103 3% 1
0.15 to < 0.25 30 948 54% 538 0.17% 101,474 84% 45 8% 1
0.25 to < 0.50 247 940 43% 653 0.29% 122,268 80% 79 12% 2
0.50 to < 0.75 315 753 46% 663 0.59% 93,449 78% 139 21% 3
0.75 to < 2.50 309 537 59% 625 1.43% 86,030 83% 274 44% 7
2.50 to < 10.00 297 232 66% 451 5.10% 63,223 84% 482 107% 19
10.00 to < 100.00 95 55 68% 133 23.47% 18,634 84% 294 222% 26
100.00 (Default) 30 – 0% 30 100.00% 4,535 82% # 0% 30
Sub-total 1,985 9,046 47% 6,250 1.62% 1,033,062 81% 1,416 23% 89 42
Retail Small Business

PD Range
0.00 to < 0.15 286 274 57% 443 0.10% 2,724 26% 30 7% #
0.15 to < 0.25 1,359 516 47% 1,604 0.17% 6,204 33% 210 13% 2
0.25 to < 0.50 311 37 59% 332 0.35% 1,087 35% 71 21% #
0.50 to < 0.75 598 41 61% 623 0.50% 3,224 37% 176 28% 1
0.75 to < 2.50 960 77 62% 1,007 1.15% 7,004 42% 481 48% 5
2.50 to < 10.00 581 28 79% 603 4.45% 6,739 43% 392 65% 11
10.00 to < 100.00 345 13 78% 355 27.19% 3,401 45% 347 98% 43
100.00 (Default) 145 1 4% 145 100.00% 1,649 55% 228 157% 64
Sub-total 4,585 987 53% 5,112 5.62% 32,032 37% 1,935 38% 126 82

9.4 CREDIT EXPOSURES UNDER ADVANCED INTERNAL RATINGS-BASED APPROACH (“A-IRBA”) (Continued)
(a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l)
Other Retail (S$ million)
PD Range
0.00 to < 0.15 357 448 97% 792 0.05% 3,550 9% 10 1% #
0.15 to < 0.25 2,849 348 84% 3,140 0.18% 27,277 10% 131 4% 1
0.25 to < 0.50 271 37 63% 295 0.31% 4,435 15% 26 9% #
0.50 to < 0.75 3,302 263 96% 3,554 0.50% 7,154 9% 253 7% 2
0.75 to < 2.50 6,589 1,168 99% 7,750 1.48% 8,786 9% 853 11% 10
2.50 to < 10.00 3,785 625 100% 4,409 4.99% 4,127 11% 745 17% 24
10.00 to < 100.00 6,677 596 100% 7,272 13.18% 5,037 10% 1,507 21% 103
100.00 (Default) 45 1 2% 45 100.00% 284 28% 75 166% 14
Sub-total 23,875 3,486 97% 27,257 5.00% 60,650 10% 3,600 13% 154 47
Corporate
PD Range
0.00 to < 0.15 126 122 99% 247 0.05% 531 7% 5 2% #
0.15 to < 0.25 340 103 100% 443 0.20% 744 7% 22 5% #
0.25 to < 0.50 – – – – – – – – NA –
0.50 to < 0.75 683 134 100% 817 0.50% 641 7% 71 9% #
0.75 to < 2.50 1,269 214 100% 1,483 1.34% 711 8% 238 16% 2
2.50 to < 10.00 1,230 272 100% 1,502 5.00% 464 9% 443 29% 7
10.00 to < 100.00 2,059 419 100% 2,478 13.65% 991 14% 1,556 63% 48
100.00 (Default) – – – – – – – – NA –
Sub-total 5,707 1,264 100% 6,970 6.29% 4,082 10% 1.0 2,335 33% 57 21
Total (all
portfolios) 90,791 18,594 65% 102,916 3.14% 1,331,331 16% 15,224 15% 550 301
(1)
On-balance sheet refers to the amount of the on-balance sheet exposure gross of impairment allowances (before taking into account the effect of CRM).
(2)
Off-balance sheet refers to the exposure value without taking into account valuation adjustments and impairment allowances, CCFs and the effect of CRM.
(3)
EAD refers to the amount relevant for the capital requirements calculation, after taking into account the effects of CCFs and CRM.
(4)
(5)
Number of obligors refers to the number of accounts, except for Retail Small Business which refers to the number of counterparties.
(6)
Refers to the effective maturity of the exposures to the obligor in years and is not applicable for portfolios under the IRB treatment of Retail asset classes
(“A-IRB”); For Corporate asset class, average effective maturity is one year across all PD ranges.
(7)
(8)
Refers to the total eligible provisions attributed to the respective portfolios.
9.5 EFFECT ON RWA OF CREDIT DERIVATIVES USED AS CRM
The Group does not recognise credit derivatives as a credit risk mitigant for exposures under F-IRBA or A- IRBA.

10. BACKTESTING OF PD FOR PORTFOLIOS UNDER IRB APPROACH
10.1 BACKTESTING OF PD FOR PORTFOLIOS UNDER FOUNDATION INTERNAL RATINGS-BASED APPROACH (“F-IRBA”)
The following table provides the information used to validate the reliability of PD used in the calculation of capital requirements.
It compares the PD under F-IRBA with the five-year average of the annual observed default rate of the Group’s obligors.
(a) (b) (c) (d) (e) (f) (g) (h) (i)

External Ratings Number of Obligors
Arithmetic Of which: Historical
PD of Defaulted New Defaulted Annual
PD (1) Obligors (2) Obligors Obligors (4) Default Rate (5)
Bank S&P Fitch Moody’s (%) (%) Dec-16 (3) Dec-17 (3) (Dec-17) (Dec-17) (%)
PD Range
AAA to AAA to Aaa to
0.00 to < 0.15
BBB BBB Baa2 0.04% 0.06% 223 236 – – –
BBB to BBB to Baa2 to
0.15 to < 0.25
BBB- BBB- Baa3 NA NA – – – – –
BBB- to BBB- to Baa3 to
0.25 to < 0.50
BB+ BB+ Ba1 0.37% 0.37% 44 31 – – –
0.50 to < 0.75 BB+ BB+ Ba1 0.54% 0.54% 25 22 – – –
0.75 to < 2.50 BB+ to B+ BB+ to B+ Ba1 to B1 1.15% 1.54% 26 29 – – –
2.50 to < 10.00 B+ to B- B+ to B- B1 to B3 5.12% 4.92% 15 25 – – –
10.00 to < 100.00 B- to C- B- to C- B3 to C3 11.10% 11.10% 44 38 – – –
Total 0.13% 1.71% 377 381 – – –
Corporate
PD Range
0.00 to < 0.15
BBB BBB Baa2 0.09% 0.11% 844 890 – – 0.00%
0.15 to < 0.25
BBB- BBB- Baa3 NA 0.15% 1 7 – – –
0.25 to < 0.50
BB+ BB+ Ba1 0.37% 0.37% 427 483 – – 0.04%
0.50 to < 0.75 BB+ BB+ Ba1 0.54% 0.54% 501 526 – – 0.08%
0.75 to < 2.50 BB+ to B+ BB+ to B+ Ba1 to B1 1.49% 1.50% 903 804 1 – 0.52%
2.50 to < 10.00 B+ to B- B+ to B- B1 to B3 5.14% 4.55% 402 319 24 5 2.45%
10.00 to < 100.00 B- to C- B- to C- B3 to C3 12.94% 11.50% 279 327 16 1 2.27%
Total 1.08% 2.06% 3,357 3,356 41 6 0.67%

10.1 BACKTESTING OF PD FOR PORTFOLIOS UNDER FOUNDATION INTERNAL RATINGS-BASED APPROACH (“F-IRBA”) (Continued)
(a) (b) (c) (d) (e) (f) (g) (h) (i)

External Ratings Number of Obligors
Arithmetic Of which: Historical
PD of Defaulted New Defaulted Annual
PD (1)
Obligors (2) Obligors Obligors (4) Default Rate (5)
Corporate IPRE S&P Fitch Moody’s (%) (%) Dec-16 (3) Dec-17 (3) (Dec-17) (Dec-17) (%)
PD Range
0.00 to < 0.15
BBB BBB Baa2 0.14% 0.14% 12 13 – –
0.15 to < 0.25
BBB- BBB- Baa3 NA NA – – – –
0.25 to < 0.50
BB+ BB+ Ba1 0.37% 0.37% 39 37 – –
0.50 to < 0.75 BB+ BB+ Ba1 0.54% 0.54% 80 81 – –
0.75 to < 2.50 BB+ to B+ BB+ to B+ Ba1 to B1 1.38% 1.44% 235 240 – –
2.50 to < 10.00 B+ to B- B+ to B- B1 to B3 4.05% 4.30% 137 131 – –
10.00 to < 100.00 B- to C- B- to C- B3 to C3 11.50% 12.65% 18 18 1 –
Total 1.18% 2.33% 521 520 1 – 0.37%

PD Range
0.00 to < 0.15
BBB BBB Baa2 0.13% 0.12% 427 459 – – 0.00%
0.15 to < 0.25
BBB- BBB- Baa3 0.16% 0.17% 894 795 – – 0.08%
0.25 to < 0.50
BB+ BB+ Ba1 0.37% 0.36% 313 331 – – 0.05%
0.50 to < 0.75 BB+ BB+ Ba1 0.54% 0.52% 601 612 – – 0.07%
0.75 to < 2.50 BB+ to B+ BB+ to B+ Ba1 to B1 1.52% 1.57% 6,587 6,664 3 – 0.06%
2.50 to < 10.00 B+ to B- B+ to B- B1 to B3 4.47% 4.35% 727 688 14 – 1.27%
10.00 to < 100.00 B- to C- B- to C- B3 to C3 17.15% 13.40% 316 449 17 1 1.91%
Total 3.32% 1.86% 9,865 9,998 34 1 0.20%
(1)
Refers to PD associated with each obligor grade, weighted by EAD.
(2)
Arithmetic mean of PDs by the number of obligors within the PD range.
(3)
Number of obligors refers to the number of counterparties at the beginning and end of the reporting period.
(4)
New defaulted obligors refers to the number of obligors that defaulted during the last 12-month period that were not funded at the end of the
previous annual reporting period.
(5)
Refers to the average of the annual observed default rate (“ODR”) over the last five years. For Corporate IPRE, ODR is only available at overall asset
class level as it adopted PD approach in Q4 2015.

10.2 BACKTESTING OF PD FOR PORTFOLIOS UNDER ADVANCED INTERNAL RATINGS-BASED APPROACH (“A-IRBA”)
The following table provides the information used to validate the reliability of PD used in the calculation of capital requirements. It
compares the PD under A-IRBA with the five-year average of the annual observed default rate of the Group’s obligors.
The increase in the number of obligors under Other Retail asset class between December 2016 and December 2017 was largely due to
the migration of Margin Lending portfolio booked in Bank of Singapore to A-IRBA.
(a) (b) (c) (d) (e) (f) (g) (h) (i)

External Ratings (1) Number of Obligors
Of which:
Arithmetic New Historical
PD of Defaulted Defaulted Annual
PD (2) Obligors (3) Obligors Obligors (5) Default Rate (6)
Residential Mortgage S&P Fitch Moody’s (%) (%) Dec-16 (4) Dec-17 (4) (Dec-17) (Dec-17) (%)
PD Range
0.00 to < 0.15 0.06% 0.05% 10,837 11,195 13 – 0.08%
0.15 to < 0.25 0.15% 0.15% 34,380 36,044 30 3 0.10%
0.25 to < 0.50 0.25% 0.25% 44,898 44,832 106 – 0.21%
0.50 to < 0.75 0.50% 0.50% 51,586 49,361 194 5 0.35%
0.75 to < 2.50 1.04% 1.14% 40,768 37,339 284 18 0.81%
2.50 to < 10.00 3.88% 4.56% 9,251 12,660 293 93 2.24%
10.00 to < 100.00 22.76% 23.21% 7,786 7,476 1,708 134 20.58%
Total 1.14% 1.57% 199,506 198,907 2,628 253 1.18%
Qualifying Revolving Retail

PD Range
0.00 to < 0.15 0.06% 0.06% 542,017 543,449 611 – 0.08%
0.15 to < 0.25 0.17% 0.16% 88,934 101,474 94 10 0.17%
0.25 to < 0.50 0.29% 0.29% 122,827 122,268 389 – 0.29%
0.50 to < 0.75 0.59% 0.60% 102,652 93,449 674 6 0.61%
0.75 to < 2.50 1.45% 1.45% 97,658 86,030 1,512 68 1.35%
2.50 to < 10.00 5.09% 4.95% 77,373 63,223 3,843 172 4.47%
10.00 to < 100.00 23.95% 23.94% 23,492 18,634 4,884 38 20.81%
Total 1.36% 1.17% 1,054,953 1,028,527 12,007 294 1.08%

10.2 BACKTESTING OF PD FOR PORTFOLIOS UNDER ADVANCED INTERNAL RATINGS-BASED APPROACH (“A-IRBA”) (Continued)
(a) (b) (c) (d) (e) (f) (g) (h) (i)

External Ratings (1) Number of Obligors
Of which:
Arithmetic New Historical
PD of Defaulted Defaulted Annual
PD (2)
Obligors (3) Obligors Obligors (5) Default Rate (6)
Retail Small Business S&P Fitch Moody’s (%) (%) Dec-16 (4) Dec-17 (4) (Dec-17) (Dec-17) (%)
PD Range
0.00 to < 0.15 0.10% 0.10% 3,040 2,724 – – –
0.15 to < 0.25 0.17% 0.18% 6,602 6,204 11 – 0.33%
0.25 to < 0.50 0.35% 0.35% 1,103 1,087 6 – 0.43%
0.50 to < 0.75 0.50% 0.50% 3,596 3,224 7 – 0.32%
0.75 to < 2.50 1.16% 1.24% 7,190 7,009 66 1 0.99%
2.50 to < 10.00 4.33% 4.73% 7,501 6,773 202 5 3.10%
10.00 to < 100.00 26.51% 26.62% 3,478 3,401 580 7 20.40%
Total 2.88% 4.33% 32,510 30,422 872 13 2.59%
Other Retail
PD Range
0.00 to < 0.15 0.05% 0.05% 10,707 4,374 9 – 0.16%
0.15 to < 0.25 0.16% 0.16% 13,911 28,472 12 1 0.16%
0.25 to < 0.50 0.33% 0.30% 1,854 4,435 6 – 0.19%
0.50 to < 0.75 0.50% 0.51% 3,931 8,490 21 1 0.43%
0.75 to < 2.50 1.22% 1.17% 3,238 11,826 23 – 0.66%
2.50 to < 10.00 4.62% 4.60% 1,249 8,051 38 – 1.75%
10.00 to < 100.00 16.94% 18.39% 652 7,401 85 2 13.03%
Total 1.04% 0.76% 35,542 73,049 194 4 0.59%
(1)
Not applicable for Retail asset classes.
(2)
Refers to PD associated with each obligor grade, weighted by EAD.
(3)
Arithmetic mean of PDs by the number of obligors within the PD range.
(4)
Number of obligors refers to the number of accounts at the beginning and end of the reporting period, except for Retail Small Business which refers
to the number of counterparties.
(5)
New defaulted obligors refers to the number of obligors that defaulted during the last 12-month period that were not funded at the end of the
previous annual reporting period.
(6)
Refers to the average of the annual observed default rate over the last five years.

11. SPECIALISED LENDING AND EQUITY EXPOSURES
11.1 SPECIALISED LENDING EXPOSURES UNDER SUPERVISORY SLOTTING CRITERIA
Exposures treated under the Supervisory Slotting Criteria include loans to customers for Project Financing (“PF”), Object Financing
(“OF”) and Commodity Financing (“CF”), which remained stable during the second half of 2017. Income Producing Real Estate (“IPRE”)
exposures are reported under F-IRBA.
Specialised Lending Portfolio

(S$ million) EAD (3)
Regulatory On- Balance Off- Balance Risk Weight Expected
Categories Remaining Maturities Sheet (1) Sheet (2) (%) PF OF CF Total RWA Losses
Less than 2.5 years – – 50% – – – – – –
Strong Equal to or more than – – 70% – – – – – –
2.5 years
Less than 2.5 years – – 70% – – – – – –
Good Equal to or more than – – 90% – – – – – –
2.5 years
Satisfactory 707 1,524 115% 844 101 233 1,178 1,437 33
Weak – – 250% – – – – – –
Default 61 – – 29 26 11 66 – 33
Total 768 1,524 873 127 244 1,244 1,437 66
(1)
On-balance sheet refers to the amount of the on-balance sheet exposure net of impairment allowances and write-offs (after taking into account the
effect of CRM).
(2)
Off-balance sheet refers to the exposure value without taking into account the effects of CCFs and CRM.
(3)
EAD refers to the amount relevant for capital requirements calculated by taking into account the effects of CCFs and CRM.
11.2 EQUITY EXPOSURES UNDER SIMPLE RISK WEIGHT METHOD
The table below represents the parameters used for the determination of capital requirements for the Group’s equity exposures using
the Simple Risk Weight method.
Equity Exposures On-Balance Off-Balance Risk Weight

(S$ million) Sheet Sheet (%) EAD (1) RWA
Exchange-Traded Equity Exposures 44 – 300% 44 141
Other Equity Exposures 275 – 400% 275 1,164
Total 319 – 319 1,305
(1)
EAD refers to the amount relevant for capital requirements calculated by taking into account the effects of CCFs and CRM.

12. COUNTERPARTY CREDIT RISK

12.1 COUNTERPARTY CREDIT RISK EXPOSURES BY APPROACH
Counterparty credit risk (“CCR”) is the risk of a counterparty defaulting before the final settlement of the transaction, which generally
represents uncertain exposures that can vary over time with the movement of underlying market factors such as those in over-the-
counter (“OTC”) derivatives.
The Group currently treats CCR under the Current Exposure Method (“CEM”), with regulatory prescribed add-on that represents the
potential future exposure in addition to the net replacement cost of the OTC derivatives.
The table below provides an overview of the CCR for OTC derivatives and Securities Financing Transactions (“SFTs”).
(a) (b) (c) (d) (e) (f)

Counterparty Credit Risk Exposure Replacement Potential Future Effective
by Approach Cost Exposure EPE Alpha factor (α) EAD (1) RWA
(S$ million)
1 CEM (For derivatives) 4,603 6,514 6,344 2,129
CCR Internal models method
2 (For derivatives and SFTs) – – –
3 FC(SA) for SFTs – –
4 FC(CA) for SFTs 5,110 312
5 VaR for SFTs – –
6 Total 2,441
(1)
EAD refers to the amount relevant for capital requirements calculation, after taking into account the effects of CRM.
12.2 CVA RISK CAPITAL CHARGE
The Credit Valuation Adjustment (“CVA”) is made to the mark-to-market valuation of OTC derivatives as calculated under the
Standardised approach for the Group, which remained stable in the second half of the year.
(a) (b)
(S$ million) EAD (1) RWA
Credit Valuation Adjustments (CVA) Risk Capital Requirements
Total portfolios subject to Advanced CVA capital requirement – –
1 (i) VaR component (including the three-times multiplier) – –
2 (ii) Stressed VaR component (including the three-times multiplier) – –
3 All portfolios subject to Standardised CVA capital requirement 5,917 1,866
4 Total portfolios subject to the CVA risk capital requirement 5,917 1,866
(1)

12.3 COUNTERPARTY CREDIT RISK EXPOSURES UNDER STANDARDISED APPROACH BY RISK WEIGHT
The table below represents the risk weights used in the calculation of capital for the Group’s portfolio, which are subjected to the CCR
requirements under the Standardised Approach by asset classes.
The decrease in total EAD during the second half of 2017 was due to the migration of Sovereign exposures to F-IRBA.
(a) (b) (c) (d) (e) (f) (g) (h) (i)

Risk Weight
Total EAD (1)
S$ million 0% 10% 20% 50% 75% 100% 150% Others
Asset Class
Sovereign – – – – – – – – –
PSE – – # – – – – – #
MDB – – – – – – – – –
Bank – – 89 15 – # – – 104
Corporate – – # – – 63 – – 63
Regulatory Retail – – – – – – – – –
Others (2) – – – – – 49 – – 49
Total – – 89 15 – 112 – – 216

(1)
EAD refers to the amount relevant for capital requirement calculation, after taking into account the effects of CRM.

(2)
Includes other exposures not included in the above asset classes.

12.4 COUNTERPARTY CREDIT RISK EXPOSURES UNDER FOUNDATION INTERNAL RATINGS-BASED APPROACH (“F-IRBA”)
The table below represents the parameters used in the calculation of capital for the Group’s portfolio, which are subjected to the CCR
requirements under the F-IRBA by asset classes.
(a) (b) (c) (d) (e) (f) (g)

Average Average Average RWA
EAD (1) PD (2) Number LGD (2) Maturity (4) RWA Density (5)
Sovereign (S$ million) (%) of Obligors (3) (%) (In years) (S$ million) (%)
PD Range
0.00 to < 0.15 1,783 0.00% 7 41% 0.1 1 0%
0.15 to < 0.25 – – – – – – NA
0.25 to < 0.50 – – – – – – NA
0.50 to < 0.75 – – – – – – NA
0.75 to < 2.50 – – – – – – NA
2.50 to < 10.00 – – – – – – NA
10.00 to < 100.00 – – – – – – NA
100.00 (Default) – – – – – – NA
Sub-total 1,783 0.00% 7 41% 0.1 1 0%
(a) (b) (c) (d) (e) (f) (g)

Bank (S$ million) (%) of Obligors (3) (%) (In years) (S$ million) (%)
PD Range
0.00 to < 0.15 4,362 0.06% 134 31% 0.8 450 10%
0.15 to < 0.25 – – – – – – NA
0.25 to < 0.50 218 0.37% 6 45% 0.3 112 51%
0.50 to < 0.75 972 0.54% 9 14% 0.2 193 20%
0.75 to < 2.50 68 1.11% 4 15% 0.1 16 23%
2.50 to < 10.00 # 3.20% 1 45% 0.0 # 106%
10.00 to < 100.00 # 11.10% 1 45% 0.0 # 212%
100.00 (Default) – – – – – – NA
Sub-total 5,620 0.17% 155 28% 0.6 771 14%
Corporate
PD Range
0.00 to < 0.15 1,338 0.08% 159 36% 1.8 299 22%
0.15 to < 0.25 – – – – – – NA
0.25 to < 0.50 708 0.37% 74 15% 0.7 149 21%
0.50 to < 0.75 102 0.54% 57 45% 1.0 58 57%
0.75 to < 2.50 162 1.54% 88 45% 3.3 199 123%
2.50 to < 10.00 121 4.35% 28 45% 3.7 202 167%
10.00 to < 100.00 7 17.84% 31 45% 1.1 16 235%
100.00 (Default) – – – – – – NA
Sub-total 2,438 0.54% 437 31% 1.6 923 38%

12.4 COUNTERPARTY CREDIT RISK EXPOSURES UNDER FOUNDATION INTERNAL RATINGS-BASED APPROACH (“F-IRBA”) (Continued)
Corporate (IPRE)
PD Range
0.00 to < 0.15 20 0.14% 6 45% 3.2 9 44%
0.15 to < 0.25 – – – – – – NA
0.25 to < 0.50 15 0.37% 11 45% 2.1 9 59%
0.50 to < 0.75 25 0.54% 21 45% 2.1 18 71%
0.75 to < 2.50 23 1.22% 23 45% 2.2 23 101%
2.50 to < 10.00 1 5.07% 4 45% 1.8 2 150%
10.00 to < 100.00 – – – – – – NA
100.00 (Default) – – – – – – NA
Sub-total 84 0.67% 65 45% 2.4 61 72%

PD Range
0.00 to < 0.15 3 0.14% 42 45% 0.9 1 22%
0.15 to < 0.25 # 0.15% 2 45% 0.2 # 15%
0.25 to < 0.50 5 0.37% 29 45% 2.7 3 59%
0.50 to < 0.75 212 0.54% 42 37% 0.0 71 34%
0.75 to < 2.50 4 1.32% 56 45% 1.7 3 82%
2.50 to < 10.00 1 5.45% 20 45% 1.0 2 120%
10.00 to < 100.00 # 11.10% 3 45% 0.2 # 154%
100.00 (Default) 4 100.00% 2 45% 1.0 – 0%
Sub-total 229 2.42% 196 38% 0.1 80 35%
Total (all portfolios) 10,154 0.28% 860 31% 0.8 1,836 18%
(1)
(2)
(3)
Number of obligors refers to the number of counterparties.
(4)
Refers to the effective maturity of the exposures to the obligor in years, weighted by EAD.

12.5 COUNTERPARTY CREDIT RISK EXPOSURES UNDER ADVANCED INTERNAL RATINGS-BASED APPROACH (“A-IRBA”)
The table below represents the parameters used in the calculation of capital for the Group’s portfolio, which are subjected to the CCR
requirements under the A-IRBA by asset classes.
CCR exposures reported under Corporate asset class is largely attributable to the Margin Lending portfolio booked in Bank of Singapore.
There was no CCR exposure within the other prescribed asset classes (Sovereign, Banks and Corporate Small Business) under A-IRBA as
at 31 December 2017.
(a) (b) (c) (d) (e) (f) (g)
Bank (S$ million) (%) of Obligors (3) (%) (In years) (S$ million) (%)
PD Range
0.00 to < 0.15 9 0.05% 161 7% # 2%
0.15 to < 0.25 16 0.20% 224 7% 1 6%
0.25 to < 0.50 – – – – – NA
0.50 to < 0.75 20 0.50% 248 7% 2 8%
0.75 to < 2.50 12 1.61% 273 7% 2 16%
2.50 to < 10.00 70 5.00% 613 26% 57 81%
10.00 to < 100.00 119 12.93% 1,264 20% 106 90%
100.00 (Default) – – – – – NA
Sub-total 246 7.79% 2,783 19% 1.1 168 68%
Total (all portfolios) 246 7.79% 2,783 19% 1.1 168 68%
(1)
(2)
(3)
Number of obligors refers to the number of accounts.
(4)
Refers to the maturity of the exposures to the obligor in years, weighted by EAD; For Corporate asset class, average maturity is 1.1 years at the
overall level and is between 0.6 to 2 years across the PD ranges.
(5)
Total RWA divided by the exposures post-CRM.

12.6 CREDIT DERIVATIVE EXPOSURES
The table below presents the Group’s exposure to credit derivatives by those bought or sold.
The decrease in notional for credit derivatives during the second half of 2017 was mainly driven by lower single-name credit default
swaps and index credit default swaps.
(a) (b)
Protection Protection
S$ million Bought Sold
Notional
1 Single-name credit default swaps 3,996 3,226
2 Index credit default swaps 1,170 1,110
3 Other credit derivatives 309 113
4 Total notional 5,475 4,449
Fair values
5 Positive fair value (asset) 5 62
6 Negative fair value (liability) 62 6
13. SECURITISATION EXPOSURES

There is no securitisation and re-securitisation exposure in the banking and trading books as at 31 December 2017.
14. MARKET RISK

14.1 MARKET RISK TYPE UNDER STANDARDISED APPROACH
During the second half of 2017, the increase in Market Risk RWA was driven mainly by higher Interest Rate and Foreign Exchange risk
as a result of enhancements in methodology in the calculation of Market Risk.
Market Risk by Standardised Approach (a)

S$ million RWA
Notional
1 Interest rate risk (general and specific) 8,840
2 Equity risk (general and specific) 508
3 Foreign exchange risk 6,249
4 Commodity risk 16
Options
5 Simplified approach –
6 Delta-plus method 493
7 Scenario approach 24
8 Securitisation –
9 Total 16,130
There is no Market Risk exposure under Internal Model Approach as at 31 December 2017.
15. INTEREST RATE RISK IN THE BANKING BOOK

Qualitative disclosures related to Interest Rate Risk in the Banking Book, including a description of its nature and key assumptions made
by the Group, can be found in the Risk Management chapter and Notes to the Financial Statements of the 2017 Annual Report.
Based on a 100 bp parallel rise in yield curves on the Group’s exposure to major currencies i.e. Singapore Dollar, US Dollar, Hong Kong
Dollar and Malaysian Ringgit, net interest income is estimated to increase by $436 million, or approximately +8.0% of reported net
interest income. The corresponding impact from a 100 bp decrease is an estimated reduction of $446 million in net interest income,
or approximately -8.2% of reported net interest income.

16. QUALITATIVE DISCLOSURES

The locations of the annual qualitative disclosures are outlined in the table below.
REPORTED IN (1)
AS PER MAS NOTICE 637, PART XI:
OVERVIEW OF RISK MANAGEMENT RISK MANAGEMENT CHAPTER OTHER LOCATIONS IN ANNUAL REPORT PILLAR 3 DISCLOSURES
1 Risk Management Approach a. Risk Management in OCBC Group Corporate Governance Chapter:
b. Risk Governance and a. The Board’s Conduct of Affairs
Organisation b. Internal Audit
c. Basel Requirements c. Risk Management and Internal
d. Credit Risk Management Controls
Oversight and Organisation d. Risk Management Committee
e. Market Risk Measurements e. Ethical Standards
f. Risk Monitoring and Control
g. Liquidity Risk Capital Management Chapter:
h. Interest Rate Risk a. Capital Monitoring
i. Structural Foreign Exchange Risk and Planning
j. Other Risks
k. Legal and Regulatory
Risk Management
CREDIT RISK
2 General Qualitative Disclosures a. Credit Risk Management
on Credit Risk b. Credit Risk Management
Oversight and Organisation
c. Credit Risk Management
Approach
d. Legal and Regulatory Risk
Management
3 Overview of Credit Quality a. Remedial Management Notes to Financial Statements:
of Assets Note 2.12 Impairment of Assets
Note 39.2 Total loans and advances
– Credit quality
Note 39.2 Loans past due but
not impaired
4 Qualitative Disclosures a. Credit Risk Mitigation Notes to Financial Statements:
on Credit Risk Mitigation b. Managing Credit Note 39.2 Collateral
(“CRM”) Techniques Risk Concentrations Note 42 Offsetting Financial Assets
and Financial Liabilities
5 Use of external credit a. Standardised Approach for
ratings under the Other Portfolios
Standardised Approach
6 Qualitative Disclosures for a. Internal Credit Rating Models
Internal Ratings Based Approach b. A-IRB for Major Consumer,
(“IRB-A”) Models Margin Lending and Small
Business Lending Portfolios
c. F-IRB for Major Wholesale
Portfolios
COUNTERPARTY CREDIT RISK (“CCR”)
7 Qualitative Disclosures a. Credit Risk from Investment and
Related to Counterparty Trading Activities
Credit Risk (“CCR”) b. Credit Risk Mitigation

REPORTED IN (1)
AS PER MAS NOTICE 637, PART XI:
OVERVIEW OF RISK MANAGEMENT RISK MANAGEMENT CHAPTER OTHER LOCATIONS IN ANNUAL REPORT PILLAR 3 DISCLOSURES
SECURITISATION
8 Qualitative disclosure related a. Credit Risk from Securitisation
to securitisation exposures b. IRB Approach for
Securitisation Exposures
MARKET RISK
9 Qualitative Disclosures related a. Market Risk Management
to Market Risk b. Market Risk Management
Oversight and Organization
c. Market Risk Management
Approach
d. Market Risk Identification
e. Market Risk Measurements
f. Risk Monitoring and Control
10 Qualitative Disclosures related
to related to Internal Models
Approach (“IMA”) (2)
OPERATIONAL RISK
11 Q
ualitative Disclosures related a. Operational Risk Management
to Operational Risk b. Operational Risk Management
Oversight and Organisation
c. Operational Risk Management
Approach
d. Basel Requirements
INTEREST RATE RISK IN THE BANKING BOOK
12 Qualitative Disclosures a. Risk Governance and Organisation Notes to Financial Statements: a. Interest Rate Risk in
related to Interest Rate Risk b. Asset Liability Management Note 39.3 Market Risk and Asset the Banking Book
in the Banking Book Oversight and Organisation Liability Management - Interest
c. Interest Rate Risk Rate Risk
REMUNERATION
13 Qualitative Disclosures Corporate Governance Chapter:
related to Remuneration a. Remuneration Committee
b. Level and Mix of Remuneration
c. Share Schemes
d. Remuneration Disclosure for
Senior Management and
Material Risk Takers
e. Related Party Transactions
f. Ethical Standards
OTHERS
14 Overview of Disclosure Policy a. Basel Requirements
15 Attestation Statement (3)
See Note 3
(1)
Listed by sections in the 2017 Annual Report.
(2)
There are no Market Risk exposures under Internal Models Approach (“IMA”).
(3)
Attestation Statement is enclosed as part of year-end Pillar 3 disclosures.

ATTESTATION STATEMENT PURSUANT TO MONETARY AUTHORITY OF SINGAPORE

(“MAS”) NOTICE 637 ON RISK BASED CAPITAL ADEQUACY REQUIREMENTS -
DISCLOSURE REQUIREMENTS (PILLAR 3)
On behalf of the Board of Directors (“Board”), we are satisfied that the disclosures in this report have been prepared in accordance with
the internal control processes approved by the Board for public disclosures.
Darren Tan
14 February 2018

FINANCIAL REPORT
Management Discussion and Analysis 134
FINANCIAL STATEMENTS
Directors’ Statement 148
Independent Auditors’ Report 154
Income Statements 159
Statements of Comprehensive Income 160
Balance Sheets 161
Statement of Changes in Equity – Group 162
Statement of Changes in Equity – Bank 164
Consolidated Cash Flow Statement 165
Notes to the Financial Statements 166
Group’s Major Properties 273

MANAGEMENT DISCUSSION AND ANALYSIS
OVERVIEW
2017 2016 +/(-) %
Selected Income Statement Items (S$ million)
Net interest income 5,423 5,052 7
Non-interest income 4,213 3,437 23
Total income 9,636 8,489 14
Operating expenses (4,034) (3,788) 6
Operating profit before allowances and amortisation 5,602 4,701 19
Amortisation of intangible assets (104) (96) 8
Allowances for loans and impairment of other assets (671) (726) (7)
Operating profit after allowances and amortisation 4,827 3,879 24
Share of results of associates 389 396 (2)
Profit before income tax 5,216 4,275 22
Net profit attributable to shareholders 4,146 3,473 19
Cash basis net profit attributable to shareholders (1) 4,250 3,569 19
Selected Balance Sheet Items (S$ million)

Ordinary equity 37,509 35,507 6
Total equity (excluding non-controlling interests) 39,008 37,007 5
Total assets 454,938 409,884 11
Assets excluding life assurance fund investment assets 381,011 347,911 10
Loans and bills receivable (net of allowances) 234,141 216,830 8
Deposits of non-bank customers 283,642 261,486 8
Per Ordinary Share

Basic earnings (cents) (2) 97.6 82.2
Basic earnings – Cash basis (cents) (2) 100.0 84.5
Diluted earnings (cents) (2) 97.4 82.2
Net asset value – Before valuation surplus (S$) 8.96 8.49
Net asset value – After valuation surplus (S$) 11.33 10.03
Key Financial Ratios (%)

Return on equity (2)(3) 11.2 10.0
Return on equity – Cash basis (2)(3) 11.5 10.3
Return on assets (4) 1.14 1.03
Return on assets – Cash basis (4) 1.17 1.06
Net interest margin 1.65 1.67

Non-interest income to total income 43.7 40.5
Cost-to-income 41.9 44.6
Loans-to-deposits 82.5 82.9
Non-performing loans ratio 1.5 1.3
Total capital adequacy ratio (5) 17.2 17.1

Tier 1 capital adequacy ratio (5) 14.9 15.1
Common Equity Tier 1 capital adequacy ratio (5) 13.9 14.7
Leverage ratio (6) 7.3 8.2
Singapore dollar liquidity coverage ratio (7) 262 272
All-currency liquidity coverage ratio (7) 148 132
(1)
Excludes amortisation of intangible assets.
(2)
Calculated based on net profit less preference dividends and distributions on other equity instruments paid and estimated to be due at the end of
the financial year.
(3)
Preference equity, other equity instruments and non-controlling interests are not included in the computation for return on equity.
(4)
Computation of return on assets excludes life assurance fund investment assets.
(5)
Capital adequacy ratios are computed based on Basel III transitional arrangements.
(6)
Leverage ratio is computed based on the revised MAS Notice 637 on Risk Based Capital Adequacy Requirements for Banks incorporated in Singapore.
(7)
Liquidity coverage ratios (LCR) are computed based on MAS Notice 649 on Minimum Liquid Assets and Liquidity Coverage Ratio, and is reported based
on the average LCR for the respective financial years.
Amounts less than S$0.5 million are shown as “0”.

OVERVIEW (continued)
The Group reported a net profit after tax of S$4.15 billion for the financial year ended 31 December 2017, an increase of 19%
from S$3.47 billion a year ago. This is the first time OCBC Bank’s reported net profit surpassed the S$4 billion mark. The strong
performance was driven by sustained growth momentum across the Group’s three business pillars: banking, wealth management
and insurance businesses.
Total income rose 14% over the prior year to exceed S$9.6 billion.
The Group’s full year net interest income rose 7% from the previous year to S$5.42 billion on the back of strong asset growth.
As at 31 December 2017, customer loans increased 8% to S$237 billion, underpinned by broad-based growth across key customer
and geographical segments. Full year net interest margin (NIM) of 1.65% declined 2 basis points from 1.67% a year ago, as lower
loan yields more than offset higher gapping income from money market activities. Nevertheless, NIM had been rising for each
consecutive quarter in 2017.
Non-interest income increased 23% to S$4.21 billion from S$3.44 billion a year ago. Fee and commission income climbed 19% to
S$1.95 billion, lifted by a 45% increase in wealth management fee income. Investment banking, fund management and trade-related
fees were also higher year-on-year. Net trading income, mainly comprising treasury-related income from customer flows, was S$515 million
as compared to S$529 million a year ago, while net gains from the sale of investment securities more than doubled to S$431 million.
Profit from life assurance of S$877 million was considerably higher than S$499 million in 2016, as Great Eastern Holdings achieved
strong underlying business growth and higher investment income from realised gains and favourable market conditions.
Operating expenses of S$4.03 billion were 6% above the previous year, mainly attributed to higher staff costs and a rise in expenses
to support the Group’s business expansion. This included the full year cost impact from the consolidation of the former wealth and
investment management business of Barclays PLC in Singapore and Hong Kong, which was acquired in November 2016. The Group’s
cost-to-income ratio improved to 41.9% from 44.6% in 2016. Net allowances for loans and other assets were S$671 million, 7% lower
as compared to S$726 million a year ago.
The Group’s share of results of associates for 2017 was S$389 million as compared to S$396 million the previous year.
The Group’s return on equity rose to 11.2% from 10.0% a year ago, while earnings per share increased to 97.6 cents from 82.2 cents.
Allowances and Asset Quality

Total net allowances for loans and other assets were 7% lower at S$671 million, as compared to S$726 million a year ago.
Despite the rise in oil prices reported towards the end of 2017, the charter rates and asset values of the offshore support services and
vessels (OSV) in the oil and gas industry continued to be depressed. Given the prolonged uncertainty and the lack of firm visibility
in the OSV sector, the Group took a prudent stance to further downgrade its OSV exposures and made appropriate allowances.
These significantly accounted for both the rise in non-performing loans (NPLs) from S$2.78 billion a year ago to S$3.42 billion,
and the majority of the S$1.41 billion in specific allowances made during the year. In the fourth quarter of 2017, the Group applied
S$887 million of cumulative portfolio allowances to cater for additional specific allowances. The Group continued to maintain
portfolio allowances at the prudent level of S$1.42 billion, which were sufficient to meet existing regulatory obligations. As at
31 December 2017, total allowances represented 313% of unsecured non-performing assets.
Apart from the OSV sector, the rest of the Group’s loan portfolio remained sound. The overall NPL ratio remained low at 1.45%,
being 0.19 percentage points higher than 1.26% a year ago.
From 1 January 2018, the Group is able to comply with the requirements of “Singapore Financial Reporting Standard (International)
(SFRS(I)) 9: Financial Instruments” and the revised MAS 612 with the current level of total allowances. The Group will make the
necessary disclosures from its first quarter 2018 results onwards.

OVERVIEW (continued)
Funding, Liquidity and Capital Position
The Group’s funding, liquidity and capital position continued to be resilient. Customer loans of S$237 billion were up 8% from
S$220 billion the previous year, driven by growth across the corporate and consumer segments. Customer deposits rose 8% to
S$284 billion, underpinned by 4% growth in current account and savings account (CASA) deposits, which made up 49.2% of
total deposits. As at 31 December 2017, the loans-to-deposits ratio was 82.5%, relatively unchanged from 82.9% a year ago.
The Group’s average Singapore dollar and all-currency liquidity coverage ratios (excluding OCBC Wing Hang Hong Kong,
OCBC Wing Hang Macao and OCBC Yangon which will be included in due course) were 262% and 148% respectively for 2017,
well above the respective regulatory ratios of 100% and 80%.
The Group’s Common Equity Tier 1 (CET1) capital adequacy ratio (CAR), Tier 1 CAR and Total CAR as at 31 December 2017 were 13.9%,
14.9% and 17.2% respectively. Based on Basel III transitional arrangements, these ratios remained well above the respective regulatory
minima of 6.5%, 8% and 10%. The Group’s CET1 CAR, based on Basel III rules which will be effective from 1 January 2018, improved to
13.1% from 12.4% in the previous year. In addition to these minimum capital requirements, a Capital Conservation Buffer (CCB) of 2.5%
and Countercyclical Buffer of up to 2.5% are being phased in from 2016 to 2019. The CCB was 1.25% as at 1 January 2017, and would
be increased by 0.625% each year to reach 2.5% on 1 January 2019. The Group’s leverage ratio of 7.3% was above the 3% minimum
regulatory requirement.
Subsidiaries’ Full Year Results
Great Eastern Holdings achieved a net profit after tax of S$1.16 billion for the year, significantly above S$589 million in 2016. Its robust
year-on-year performance was driven by higher operating profit from its insurance business and strong performance in its investment
portfolio as a result of favourable market conditions. Total weighted new sales and new business embedded value grew 23% and 17%
respectively from a year ago. Great Eastern Holdings’ contribution to the Group’s net profit, after deducting amortisation of intangible
assets and non-controlling interests, rose from S$470 million to S$968 million, contributing 23% of the Group’s earnings.
OCBC Bank Malaysia reported a 17% rise in 2017 net profit after tax of RM949 million (S$305 million), underpinned by a rise in net
interest income and non-interest income, and from a decline in allowances. As at 31 December 2017, customer loans were RM68 billion
(S$22 billion) while customer deposits were RM74 billion (S$24 billion). Asset quality remained healthy, with the NPL ratio down at
2.1% from 2.2% a year ago.
Bank OCBC NISP’s net profit after tax rose 22% to IDR2,176 billion (S$224 million), driven by broad-based income growth which more
than offset a rise in operating expenses. Customer loans were up 14% over the previous year at IDR106 trillion (S$10 billion), while the
NPL ratio was lower at 1.8%. As at 31 December 2017, customer deposits of IDR113 trillion (S$11 billion) were 10% higher than a year ago.
OCBC Wing Hang’s full year net profit after tax was 18% higher at HK$2.41 billion (S$425 million), driven by increases in both net
interest and non-interest income. Customer loans rose 11% to HK$180 billion (S$31 billion) and the NPL ratio improved to 0.5%
from 0.9% a year ago, while deposits increased 15% to HK$222 billion (S$38 billion).
Bank of Singapore’s assets under management as at 31 December 2017 increased 25% to US$99 billion (S$132 billion) from
US$79 billion (S$115 billion) a year ago, driven by sustained net new money inflows and improved market valuations. Its earnings
asset base, which included secured loans, likewise rose 25% to US$121 billion (S$161 billion) from US$97 billion (S$140 billion)
the previous year.
The Group’s 2017 wealth management income, comprising income from insurance, private banking, asset management, stockbroking
and other wealth management products, rose 43% to a new high of S$3.25 billion. As a proportion of the Group’s total income,
wealth management income contributed 34%, as compared to 27% in 2016.
Final Dividend
The Board has proposed a final tax-exempt dividend of 19 cents per share, an increase from 18 cents per share the previous year,
bringing the 2017 total dividend to 37 cents per share, up from 36 cents in 2016. The Scrip Dividend Scheme will not be applicable to
the final dividend. The estimated total dividend payout will amount to S$1.55 billion, an increase of 2.86% over the prior year
and representing 37% of the Group’s net profit in 2017.

NET INTEREST INCOME
Average Balance Sheet
2017 2016
Average Average Average Average
Balance Interest Rate Balance Interest Rate
S$ million S$ million % S$ million S$ million %
Interest earning assets
Loans and advances to non-bank customers 225,150 6,845 3.04 206,622 6,527 3.16
Placements with and loans to banks 54,616 1,090 2.00 50,596 772 1.52
Other interest earning assets 49,026 1,183 2.41 45,631 1,069 2.34
Total 328,792 9,118 2.77 302,849 8,368 2.76
Interest bearing liabilities

Deposits of non-bank customers 268,235 2,960 1.10 247,818 2,723 1.10
Deposits and balances of banks 11,065 142 1.28 13,252 124 0.94
Other borrowings 28,884 593 2.05 21,678 469 2.16
Total 308,184 3,695 1.20 282,748 3,316 1.17
Net interest income/margin (1) 5,423 1.65 5,052 1.67
Net interest income rose 7% to S$5.42 billion in 2017 from S$5.05 billion a year ago, driven by strong asset growth. The 2 basis points
decline in net interest margin to 1.65%, from 1.67% in 2016 was mainly attributable to lower loan yields which more than offset higher
gapping income from money market activities.
Volume and Rate Analysis

Volume Rate Net Change
Increase/(decrease) for 2017 over 2016 due to change in: S$ million S$ million S$ million
Interest income
Loans and advances to non-bank customers 584 (248) 336
Placements with and loans to banks 61 260 321
Other interest earning assets 79 37 116
Total 724 49 773
Interest expense
Deposits of non-bank customers 224 21 245
Deposits and balances of banks (20) 38 18
Other borrowings 155 (30) 125
Total 359 29 388
Impact on net interest income 365 20 385
Due to change in numbers of days (14)

Net interest income 371
(1)
Net interest margin is net interest income as a percentage of interest earning assets.

NON-INTEREST INCOME
2017 2016 +/(-)
S$ million S$ million %
Fees and commissions
Brokerage 72 65 11
Wealth management 852 588 45
Fund management 108 99 10
Credit card 161 159 1
Loan-related 292 304 (4)
Trade-related and remittances 217 209 4
Guarantees 19 20 (4)
Investment banking 94 63 50
Service charges 101 95 5
Others 37 36 1
Sub-total 1,953 1,638 19
Dividends 76 101 (25)

Rental income 83 91 (8)
Profit from life assurance 877 499 76
Premium income from general insurance 150 150 –
Other income
Net trading income 515 529 (3)
Net gain from investment securities 431 198 118
Net gain/(loss) from disposal of subsidiaries and associates 33 (18) 279
Net gain from disposal of properties 57 161 (65)
Others 38 88 (57)
Sub-total 1,074 958 12
Total non-interest income 4,213 3,437 23
Fees and commissions to total income ratio 20.3% 19.3%

Non-interest income to total income ratio 43.7% 40.5%
Non-interest income was 23% higher at S$4.21 billion for 2017 as compared with S$3.44 billion a year ago.
Fee and commission income rose 19% to S$1.95 billion. This was largely driven by a 45% increase in wealth management fee
income. Investment banking, fund management and trade-related fees were also higher year-on-year. Net trading income, primarily
treasury-related income from customer flows, was S$515 million, a decline of 3% from S$529 million. Net realised gains from the sale
of investment securities were S$431 million as compared to S$198 million a year ago, while net gains from the sale of properties of
S$57 million were lower from S$161 million in 2016. Profit from life assurance was 76% higher at S$877 million as compared to
S$499 million, achieved through Great Eastern Holdings’ strong underlying business growth and higher investment income from
realised gains due to favourable market conditions.

OPERATING EXPENSES
2017 2016 +/(-)
Staff costs
Salaries and other costs 2,236 2,128 5
Share-based expenses 55 51 8
Contribution to defined contribution plans 180 168 7
2,471 2,347 5
Property and equipment

Depreciation 315 308 2
Maintenance and hire of property, plant & equipment 121 117 3
Rental expenses 99 100 (2)
Others 258 238 9
793 763 4
Other operating expenses 770 678 14

Total operating expenses 4,034 3,788 6
Group staff strength

Period end 29,174 29,792 (2)
Average 29,401 30,037 (2)
Cost-to-income ratio 41.9% 44.6%
Operating expenses grew 6% to S$4.03 billion in 2017, an increase from S$3.79 billion a year ago, largely from higher staff costs and
a rise in expenses associated with the growth in business volumes. This included the full year cost impact from the consolidation of
the former wealth and investment management business of Barclays PLC in Singapore and Hong Kong acquired in November 2016.
The cost-to-income ratio was lower at 41.9% in 2017, an improvement as compared to 44.6% a year ago.
ALLOWANCES FOR LOANS AND OTHER ASSETS

2017 2016 +/(-)
Specific allowances for loans
Singapore 486 208 133
Malaysia 297 72 312
Greater China 84 47 82
Others 540 157 243
1,407 484 191
(Write-back)/portfolio allowances for loans (786) 172 (558)
Allowances and impairment charges for other assets 50 70 (28)
Allowances for loans and impairment for other assets 671 726 (7)
Allowances for loans and other assets were S$671 million in 2017, lower as compared to S$726 million a year ago.
Specific allowances for loans, net of recoveries and write-backs were S$1.41 billion for the year, higher as compared to S$484 million in
2016. The increase was mainly attributable to allowances made for exposures to the offshore support services and vessels sector which
continued to be under stress. In the fourth quarter of 2017, the Group applied S$887 million of cumulative portfolio allowances to cater
for additional specific allowances. The Group continued to maintain portfolio allowances at the prudent level of S$1.42 billion, which
were sufficient to meet existing regulatory obligations.

LOANS AND ADVANCES

2017 2016 +/(-)
By Industry
Agriculture, mining and quarrying 8,073 8,974 (10)
Manufacturing 12,501 12,697 (2)
Building and construction 35,436 35,632 (1)
Housing loans 64,542 60,149 7
General commerce 29,010 25,348 14
Transport, storage and communication 11,568 11,520 –
Financial institutions, investment and holding companies 37,838 30,491 24
Professionals and individuals 28,704 26,396 9
Others 9,649 8,945 8
237,321 220,152 8
By Currency
Singapore Dollar 85,485 81,260 5
United States Dollar 61,445 56,576 9
Malaysian Ringgit 20,481 20,552 –
Indonesian Rupiah 7,795 7,486 4
Hong Kong Dollar 33,011 30,339 9
Chinese Renminbi 4,626 5,182 (11)
Others 24,478 18,757 31
237,321 220,152 8
By Geography (1)
Singapore 99,872 93,580 7
Malaysia 28,231 27,948 1
Indonesia 19,259 18,138 6
Greater China 59,114 53,997 9
Other Asia Pacific 12,754 11,988 6
Rest of the World 18,091 14,501 25
237,321 220,152 8
(1)
Loans by geography are based on where the credit risks reside, which may be different from the borrower’s country of residence or the booking
location of the loans.
Gross loans to customers were S$237 billion as at 31 December 2017, an increase of 8% from S$220 billion in the previous year.
In constant currency terms, customer loans grew 11% year-on-year. By industry, loan growth was broad-based across key customer
segments and geographies, with the largest increase coming from financial institutions, investment and holding companies and
housing loans.

NON-PERFORMING ASSETS
Secured NPAs/
Total NPAs (1) Substandard Doubtful Loss Total NPAs NPLs (2) NPL Ratio (2)
S$ million S$ million S$ million S$ million % S$ million %
Singapore
31 Dec 2017 1,132 772 212 148 73.1 1,086 1.1
31 Dec 2016 800 404 248 148 68.3 745 0.8
Malaysia
31 Dec 2017 862 485 335 42 77.4 857 3.0
31 Dec 2016 610 485 81 44 79.5 607 2.2
Indonesia
31 Dec 2017 589 399 29 161 73.4 588 3.1
31 Dec 2016 691 433 120 138 67.0 689 3.8
Greater China
31 Dec 2017 232 74 110 48 54.4 232 0.4
31 Dec 2016 389 219 114 56 40.2 354 0.7
Other Asia Pacific

31 Dec 2017 252 223 29 – 68.7 252 2.0
31 Dec 2016 326 301 25 – 67.6 326 2.7
Rest of the World

31 Dec 2017 401 386 13 2 97.3 400 2.2
31 Dec 2016 70 60 9 1 88.5 62 0.4
Group
31 Dec 2017 3,468 2,339 728 401 75.5 3,415 1.5
31 Dec 2016 2,886 1,902 597 387 67.0 2,783 1.3
(1)
Comprise non-bank loans, debt securities and contingent liabilities.
(2)
Exclude debt securities and contingent liabilities.
Non-performing assets (NPAs) were S$3.47 billion as at 31 December 2017, and represented a 20% increase from S$2.89 billion a year
ago. The year-on-year increase in NPAs was mainly due to the downgrade of exposures related to the offshore support services and
vessels sector where operating conditions remained challenged.
The Group’s NPL ratio was 1.45%, an increase from 1.26% a year ago. Of the total NPAs, 67% were in the substandard category and 76%
were secured by collateral.

NON-PERFORMING ASSETS (continued)

2017 2016
% of % of
S$ million Gross Loans S$ million Gross Loans
NPLs by Industry
Loans and advances
Agriculture, mining and quarrying 305 3.8 152 1.7
Manufacturing 304 2.4 254 2.0
Building and construction 59 0.2 94 0.3
Housing loans 392 0.6 406 0.7
General commerce 291 1.0 376 1.5
Transport, storage and communication 1,277 11.0 608 5.3
Financial institutions, investment and holding companies 376 1.0 435 1.4
Professionals and individuals 146 0.5 170 0.6
Others 265 2.7 288 3.2
Total NPLs 3,415 1.5 2,783 1.3
Classified debt securities 35 80
Classified contingent liabilities 18 23
Total NPAs 3,468 2,886
2017 2016
S$ million % S$ million %
NPAs by Period Overdue
Over 180 days 1,212 35 1,528 53
Over 90 to 180 days 257 8 337 12
30 to 90 days 313 9 248 9
Less than 30 days 48 1 323 11
Not overdue 1,638 47 450 15
3,468 100 2,886 100

CUMULATIVE ALLOWANCES FOR ASSETS
Total Specific Cumulative
Cumulative Specific Portfolio Allowances as Allowances as
Allowances Allowances Allowances % of Total NPAs % of Total NPAs
S$ million S$ million S$ million % %
Singapore
31 Dec 2017 764 320 444 28.2 67.4
31 Dec 2016 1,082 235 847 29.4 135.2
Malaysia
31 Dec 2017 618 340 278 39.4 71.8
31 Dec 2016 509 124 385 20.4 83.4
Indonesia
31 Dec 2017 416 232 184 39.4 70.7
31 Dec 2016 461 173 288 25.0 66.7
Greater China
31 Dec 2017 428 61 367 26.5 184.8
31 Dec 2016 610 89 521 23.0 156.9
Other Asia Pacific

31 Dec 2017 194 111 83 44.1 77.0
31 Dec 2016 127 17 110 5.1 38.9
Rest of the World

31 Dec 2017 246 185 61 46.2 61.4
31 Dec 2016 98 8 90 10.8 139.3
Group
31 Dec 2017 2,666 1,249 1,417 36.0 76.9
31 Dec 2016 2,887 646 2,241 22.4 100.0
As at 31 December 2017, the Group’s total cumulative allowances for assets were S$2.67 billion, comprising S$1.25 billion in specific
allowances and S$1.42 billion in portfolio allowances. The coverage ratios as of 31 December 2017 comprised total cumulative
allowances amounting to 313% of unsecured NPAs and 77% of total NPAs.

DEPOSITS
2017 2016 +/(-)
Deposits of non-bank customers 283,642 261,486 8
Deposits and balances of banks 7,485 10,740 (30)
Total deposits 291,127 272,226 7
Non-Bank Deposits By Product

Fixed deposits 118,078 113,943 4
Savings deposits 51,817 48,240 7
Current account 87,773 85,411 3
Others 25,974 13,892 87
283,642 261,486 8
Non-Bank Deposits By Currency

Singapore Dollar 97,665 94,413 3
United States Dollar 93,415 80,402 16
Malaysian Ringgit 22,364 21,701 3
Indonesian Rupiah 8,206 7,563 8
Hong Kong Dollar 28,640 27,336 5
Chinese Renminbi 7,551 8,008 (6)
Others 25,801 22,063 17
283,642 261,486 8
Loans-to-deposits ratio (net non-bank loans/non-bank deposits) 82.5% 82.9%
Non-bank customer deposits as at 31 December 2017 were S$284 billion, up 8% from a year ago. The ratio of current and savings
deposits to total non-bank deposits was 49.2%, as compared to 51.1% a year ago. The Group’s loans-to-deposits ratio was 82.5%
as at 31 December 2017.
PERFORMANCE BY BUSINESS SEGMENT

OCBC Group’s businesses are presented in the following customer segments and business activities: Global Consumer/Private Banking,
Global Corporate/Investment Banking, Global Treasury and Markets, OCBC Wing Hang and Insurance.
Operating Profit by Business Segment
2017 2016 +/(-)

Global Consumer/Private Banking 1,230 907 36
Global Corporate/Investment Banking 1,420 1,533 (7)
Global Treasury and Markets 482 445 8
OCBC Wing Hang 370 362 2
Insurance 1,264 662 91
Others 61 (30) (297)
Operating profit after allowances and amortisation 4,827 3,879 24

PERFORMANCE BY BUSINESS SEGMENT (continued)
Global Consumer/Private Banking
Global Consumer/Private Banking provides a full range of products and services to individual customers. At Global Consumer Banking,
the products and services offered include deposit products (checking accounts, savings and fixed deposits), consumer loans (housing loans
and other personal loans), credit cards, wealth management products (unit trusts, bancassurance products and structured deposits)
and brokerage services. Private Banking caters to the specialised banking needs of high net worth individuals, offering wealth management
expertise, including investment advice and portfolio management services, estate and trust planning, and wealth structuring.
Global Consumer/Private Banking’s operating profit after allowances was S$1.23 billion in 2017, a year-on-year increase of 36%, driven
by higher net interest income and fee income, partly offset by an increase in expenses.
Global Corporate/Investment Banking

Global Corporate/Investment Banking serves institutional customers ranging from large corporates and the public sector to small and
medium enterprises. The products and services offered include long-term loans such as project financing, short-term credit such as
overdrafts and trade financing, deposit accounts and fee-based services such as cash management and custodian services. Investment
Banking offers a comprehensive range of financing solutions, syndicated loans and advisory services, corporate finance services for
initial public offerings, secondary fund-raising, takeovers and mergers, as well as customised and structured equity-linked financing.
Global Corporate/Investment Banking’s operating profit after allowances was down 7% year-on-year to S$1.42 billion in 2017, mainly
attributable to higher allowances. The increase in allowances was mainly attributable to specific allowances made for exposures to the
offshore support services and vessels sector.
Global Treasury and Markets

Global Treasury and Markets is responsible for the management of the Group’s asset and liability interest rate positions, engages in
foreign exchange activities, money market operations, fixed income and derivatives trading, and offers structured treasury products
and financial solutions to meet customers’ investment and hedging needs. Income from treasury products and services offered to
customers of other business segments, such as Global Consumer/Private Banking and Global Corporate/Investment Banking,
is reflected in the respective business segments.
Global Treasury’s operating profit rose 8% to S$482 million in 2017. The higher year-on-year operating profit was driven by higher net
interest income from money market activities, partly offset by a decline in net trading income.
OCBC Wing Hang

OCBC Wing Hang offers a comprehensive range of commercial banking and related financial services such as consumer financing, share
brokerage and insurance.
OCBC Wing Hang’s operating profit after allowances rose 2% to S$370 million in 2017, led by higher net interest income offset by lower
trading income.
Insurance
The Group’s insurance business, including its fund management activities, is undertaken by 87.9%-owned subsidiary Great Eastern
Holdings and its subsidiaries, which provide both life and general insurance products to its customers mainly in Singapore and Malaysia.
Operating profit after allowances from Great Eastern Holdings rose 91% year-on-year to S$1.26 billion in 2017. The year-on-year
increase was driven by robust underlying business growth and strong performance in its investment portfolio as a result of favourable
market conditions.
After tax and non-controlling interests, Great Eastern Holdings’ contribution to the Group’s net profit was S$968 million in 2017, higher
than S$470 million in 2016.
Others
Others comprise mainly property holding, investment holding and items not attributable to the business segments described above.

PERFORMANCE BY GEOGRAPHICAL SEGMENT

2017 2016
S$ million % S$ million %
Total income
Singapore 5,792 60 4,908 58
Malaysia 1,327 14 1,314 15
Indonesia 808 8 731 8
Greater China 1,326 14 1,250 15
Other Asia Pacific 162 2 141 2
Rest of the World 221 2 145 2
9,636 100 8,489 100
Profit before income tax

Singapore 2,878 55 2,154 50
Malaysia 705 14 802 19
Indonesia 449 8 226 5
Greater China 978 19 934 22
Other Asia Pacific 119 2 84 2
Rest of the World 87 2 75 2
5,216 100 4,275 100
Total assets
Singapore 257,558 57 229,752 56
Malaysia 62,914 14 60,412 15
Indonesia 15,378 3 14,946 4
Greater China 85,758 19 75,563 18
Other Asia Pacific 13,399 3 12,007 3
Rest of the World 19,931 4 17,204 4
454,938 100 409,884 100
The geographical segment analysis is based on the location where assets or transactions are booked. For 2017, Singapore accounted
for 60% of total income and 55% of pre-tax profit, while Malaysia accounted for 14% of total income and 14% of pre-tax profit.
Greater China accounted for 14% of total income and 19% of pre-tax profit.
Pre-tax profit for Singapore was S$2.88 billion in 2017, an increase from S$2.15 billion a year ago, driven by higher profit from life
assurance and net interest income, which more than offset a rise in operating expenses. Malaysia’s pre-tax profit was S$705 million,
12% lower from a year ago at S$802 million, mainly attributable to higher allowances. Pre-tax profit for Greater China was
S$978 million, up from S$934 million in 2016, underpinned by net interest income and non-interest income growth.

CAPITAL ADEQUACY RATIOS
The Group remains strongly capitalised, with a Common Equity Tier 1 (CET1) capital adequacy ratio (CAR) of 13.9%, and Tier 1 and
Total CAR of 14.9% and 17.2% respectively. These ratios, based on Basel III transitional arrangements, were well above the regulatory
minima of 6.5%, 8% and 10%, respectively, for 2017. In addition to these minimum capital requirements, Capital Conservation Buffer
(CCB) of 2.5% and Countercyclical Buffer (CCyB) of up to 2.5% are being phased in from 2016 to 2019. The CCB was 1.25% on
1 January 2017 and increases by 0.625% each year to reach 2.5% on 1 January 2019. The CCyB is not an on-going requirement and
the applicable magnitude will be the weighted average of the country-specific CCyB requirements that are being applied by national
authorities in jurisdictions to which the Bank has private sector credit exposures.
The Group’s CET1 CAR, based on Basel III rules which will be effective from 1 January 2018, was 13.1%.
LEVERAGE RATIO
The leverage ratio is an indicator of capital strength to supplement the risk-based capital requirements and is the ratio of Tier 1 Capital
to total exposures (comprising on-balance sheet exposures, derivative exposures, securities financing transaction exposures and off-
balance sheet items). As at 31 December 2017, the Group’s leverage ratio of 7.3% was above the 3% minimum regulatory requirement.
LIQUIDITY COVERAGE RATIOS

For 2017, the average Singapore dollar (SGD) and all-currency liquidity coverage ratios (LCR) for the Group (excluding OCBC Wing Hang
Hong Kong, OCBC Wing Hang Macao and OCBC Yangon which will be included in due course) were 262% and 148% respectively.
The Group continued to focus on acquiring stable deposits and to maintain a mix of High Quality Liquid Assets comprising mainly Level 1
central bank reserves and liquid sovereign bonds. The Asset & Liability Management Desk in Global Treasury manages the day-to-day
liquidity needs of the Group, and is subject to liquidity limits and triggers that serve as risk control on the Group’s liquidity exposure.
UNREALISED VALUATION SURPLUS

2017 2016
S$ million S$ million
Properties (1) 4,010 3,890
Equity securities (2) 5,905 2,557
Total 9,915 6,447
(1)
Includes properties classified as investment properties and assets held for sale. Property values are determined mainly based on external valuations
at year-end.
(2)
Comprises mainly investments in quoted subsidiaries, a quoted associate and the investment in Hong Kong Life Insurance Limited (Hong Kong Life),
which are valued based on their year-end market prices for quoted equities and the sale consideration for Hong Kong Life.
The Group’s unrealised valuation surplus largely represents the difference between the carrying amounts and market values of its
properties, investments in associates and quoted subsidiaries at the respective years. The carrying amounts of associates and quoted
subsidiaries on the balance sheet are measured at cost plus post-acquisition reserves, while those of properties are measured at cost
less accumulated depreciation, and impairment, if any.
The valuation surplus as at 31 December 2017 was S$9.92 billion, 54% higher from S$6.45 billion as at 31 December 2016, mainly from
higher market valuation from the Group’s equity stake in Great Eastern Holdings.

DIRECTORS’ STATEMENT
For the financial year ended 31 December 2017
The directors present this statement to the members of the Bank together with the audited consolidated financial statements of the
Group and the income statement, statement of comprehensive income, balance sheet and statement of changes in equity of the Bank
for the financial year ended 31 December 2017.
In our opinion:
(a) the financial statements set out on pages 159 to 272 are drawn up so as to give a true and fair view of the financial position of the
Group and of the Bank as at 31 December 2017, the financial performance and changes in equity of the Group and of the Bank for
the financial year ended on that date, and cash flows of the Group for the financial year ended on that date, in accordance with
the provisions of the Singapore Companies Act, Chapter 50 (the “Act”) and Singapore Financial Reporting Standards, including
the modification of the requirements of Singapore Financial Reporting Standard 39 Financial Instruments: Recognition and
Measurement in respect of loan loss provisioning by Notice to Banks No. 612 Credit Files, Grading and Provisioning issued by the
Monetary Authority of Singapore; and
(b) at the date of this statement, there are reasonable grounds to believe that the Bank will be able to pay its debts as and when they
fall due.
The Board of Directors has, on the date of this statement, authorised these financial statements for issue.
DIRECTORS
The directors of the Bank in office at the date of this statement are as follows:
Ooi Sang Kuang, Chairman

Samuel N. Tsien, Chief Executive Officer
Christina Hon Kwee Fong (Christina Ong)
Chua Kim Chiu (Appointed on 20 September 2017)
Lai Teck Poh
Lee Tih Shih
Quah Wee Ghee
Pramukti Surjaudaja
Tan Ngiap Joo
Wee Joo Yeow
Ooi Sang Kuang, Lai Teck Poh and Pramukti Surjaudaja will retire by rotation under Article 98 of the Constitution at the forthcoming
annual general meeting of the Bank and, being eligible, will offer themselves for re-election thereat.
Chua Kim Chiu will retire under Article 104 of the Constitution at the forthcoming annual general meeting of the Bank and, being
eligible, will offer himself for re-election thereat.
ARRANGEMENTS TO ENABLE DIRECTORS TO ACQUIRE SHARES AND DEBENTURES

Neither at the end of, nor at any time during the financial year, was the Bank a party to any arrangement whose objects are, or one of
whose objects is, to enable the directors of the Bank to acquire benefits by means of the acquisition of shares in, or debentures of, the
Bank or any other body corporate, other than as disclosed in this statement.

DIRECTORS’ INTERESTS IN SHARES OR DEBENTURES
According to the register of directors’ shareholdings, the directors holding office at the end of the financial year had interests in shares
in the Bank and its related corporations, as follows:
Direct interest Deemed interest (1)

At 1.1.2017/ At 1.1.2017/
Date of Date of
At 31.12.2017 appointment At 31.12.2017 appointment
BANK
Ordinary shares
Ooi Sang Kuang 32,366 26,366 – –
Samuel N. Tsien 1,037,861 762,471 – –
Christina Hon Kwee Fong (Christina Ong) 5,262 – – –
Chua Kim Chiu – – – –
Lai Teck Poh 920,944 1,064,944 – –
Lee Tih Shih 10,526,908 10,520,908 – –
Quah Wee Ghee 33,242 27,242 589 589
Pramukti Surjaudaja 56,440 50,440 – –
Tan Ngiap Joo 1,293,913 1,336,498 – –
Wee Joo Yeow 52,652 46,652 4,794 4,794
Options/ rights/ awards in respect of ordinary shares

Samuel N. Tsien 5,341,162 (2) 5,060,601 (3) – –
Tan Ngiap Joo – 51,415 (4) – –
OCBC Capital Corporation (2008)

5.1% non-cumulative non-convertible guaranteed preference shares
Lee Tih Shih 10,000 10,000 – –
Quah Wee Ghee – – 2,100 2,100
(1)
Ordinary shares/preference shares held by spouse.
(2)
Comprises: (i) 4,624,417 options granted under the OCBC Share Option Scheme 2001; (ii) 7,602 rights to acquire shares granted under the
OCBC Employee Share Purchase Plan; and (iii) 709,143 unvested shares granted under the OCBC Deferred Share Plan.
(3)
Comprises: (i) 4,314,802 options granted under the OCBC Share Option Scheme 2001; (ii) 7,775 rights to acquire shares granted under the
OCBC Employee Share Purchase Plan; and (iii) 738,024 unvested shares granted under the OCBC Deferred Share Plan.
(4)
Comprises options granted under the OCBC Share Option Scheme 2001.

DIRECTORS’ INTERESTS IN SHARES OR DEBENTURES (continued)

None of the directors holding office at the end of the financial year had any direct or deemed interests in the 4.0% Class M
non-cumulative non-convertible preference shares of the Bank. The 4.0% Class M non-cumulative non-convertible preference
shares were fully redeemed by the Bank on 17 January 2018.
Save as disclosed above, no director holding office at the end of the financial year had any interest in shares in, or debentures of,
the Bank or any of its related corporations either at the beginning of the financial year, date of appointment, or at the end of the
financial year.
There were no changes to any of the above mentioned interests between the end of the financial year and 21 January 2018.
SHARE-BASED COMPENSATION PLANS

The Bank’s share-based compensation plans are administered by the Remuneration Committee, which comprises:
Wee Joo Yeow, Chairman

Ooi Sang Kuang
Quah Wee Ghee
Tan Ngiap Joo
Under the share-based compensation plans, no options or rights have been granted to controlling shareholders of the Bank or their
associates, nor has any participant received 5% or more of the total number of options or rights available under each respective scheme
or plan during the financial year. No options or rights were granted at a discount during the financial year. The persons to whom the
options or rights were issued have no right by virtue of these options or rights to participate in any share issue of any other company.
The disclosure requirement in Rule 852(1)(c) of the SGX Listing Manual relating to the grant of options to directors and employees of the
parent company and its subsidiaries is not applicable to the Bank’s share-based compensation plans.
The Bank’s share-based compensation plans are as follows:
(a) OCBC Share Option Scheme 2001
The OCBC Share Option Scheme 2001 (“2001 Scheme”), which was implemented in 2001, was extended for another 10 years from
2011 to 2021, with the approval of shareholders. Executives of the Group ranked Manager and above and non-executive directors
of the Group are eligible to participate in this scheme. The Bank will either issue new shares or transfer treasury shares to the
participants upon the exercise of their options.
Particulars of Options 2007, 2007A, 2007B, 2008, 2009, 2010, 2011, 2012, 2012NED, 2013, 2013NED, 2014, 2014GK, 2015,
2015CT, 2015JL, 2016 and 2016A were set out in the Directors’ Reports/Directors’ Statements for the financial years ended
31 December 2007 to 2016.
During the financial year, pursuant to the 2001 Scheme, options to acquire 9,562,392 ordinary shares at S$9.598 per ordinary share
were granted to 231 eligible executives of the Group (“2017 Options”). The acquisition price was equal to the average of the last
traded price of the ordinary shares of the Bank on the Singapore Exchange over the five consecutive trading days immediately
prior to the date of grant. In addition, options to acquire 18,943 ordinary shares at S$11.378 per ordinary share and 5,673 ordinary
shares at S$12.316 were also granted to two senior executives of the Bank during the financial year (“2017SL” and “2017DM”).
The acquisition price was equal to the average of the last traded price of the ordinary shares of the Bank on the Singapore Exchange
over the five consecutive trading days immediately prior to the respective dates of grant.

SHARE-BASED COMPENSATION PLANS (continued)
(a) OCBC Share Option Scheme 2001 (continued)
Details of unissued ordinary shares under the 2001 Scheme, options exercised during the financial year and options outstanding
and exercisable at 31 December 2017 are as follows:
Treasury
Acquisition Options shares At 31.12.2017
Options Exercise period price ($) exercised transferred Outstanding Exercisable
2007 15.03.2008 to 13.03.2017 8.354 1,413,661 1,393,730 – –
2007A 16.01.2008 to 14.01.2017 7.391 457,593 457,593 – –
2007B 15.03.2008 to 13.03.2017 8.354 114,063 112,253 – –
2008 15.03.2009 to 13.03.2018 7.313 564,556 562,005 751,685 751,685
2009 17.03.2010 to 15.03.2019 4.024 447,235 447,235 684,734 684,734
2010 16.03.2011 to 14.03.2020 8.521 972,555 972,555 768,709 768,709
2011 15.03.2012 to 13.03.2021 9.093 847,525 847,525 896,995 896,995
2012 15.03.2013 to 13.03.2022 8.556 1,407,654 1,400,324 1,730,598 1,730,598
2012NED 15.03.2013 to 13.03.2017 8.556 350,572 350,572 – –
2013 15.03.2014 to 13.03.2023 10.018 2,431,485 2,405,834 4,732,495 4,732,495
2013NED 15.03.2014 to 13.03.2018 10.018 210,000 210,000 254,817 254,817
2014 15.03.2015 to 13.03.2024 9.169 2,245,014 2,229,212 3,220,695 3,220,695
2014GK 12.09.2015 to 10.09.2024 9.732 135,753 135,753 – –
2015 16.03.2016 to 15.03.2025 10.378 862,290 850,995 5,637,328 3,433,520
2015CT 30.06.2016 to 29.06.2025 10.254 – – 31,779 20,974
2015JL 16.11.2016 to 15.11.2025 9.030 9,849 9,849 19,999 9,849
2016 16.03.2017 to 15.03.2026 8.814 746,643 739,389 8,286,551 2,253,660
2016A 16.03.2017 to 15.03.2026 8.814 8,200 8,200 130,036 37,417
2017 23.03.2018 to 22.03.2027 9.598 – – 9,413,925 –
2017SL 04.08.2018 to 03.08.2027 11.378 – – 18,943 –
2017DM 29.12.2018 to 28.12.2027 12.316 – – 5,673 –
13,224,648 13,133,024 36,584,962 18,796,148
(b) OCBC Employee Share Purchase Plan
The OCBC Employee Share Purchase Plan (“ESP Plan”), which was implemented in 2004, was extended for another 10 years from
2014 to 2024, with the approval of shareholders. Employees of the Group who have attained the age of 21 years and been employed
for not less than six months are eligible to participate in the ESP Plan.
At an extraordinary general meeting held on 17 April 2009, alterations to the ESP Plan were approved to enable two (but not more
than two) Offering Periods to be outstanding on any date. Since each Offering Period currently consists of a 24-month period, these
alterations will enable the Bank to prescribe Offering Periods once every 12 months (instead of once every 24 months as
was previously the case).
In June 2017, the Bank launched its twelfth offering under the ESP Plan, which commenced on 1 July 2017 and will expire on
30 June 2019. Under the twelfth offering, 6,056 employees enrolled to participate in the ESP Plan to acquire 7,580,663 ordinary
shares at S$10.77 per ordinary share. The acquisition price is equal to the average of the last traded price of the ordinary shares of
the Bank on the Singapore Exchange over five consecutive trading days immediately preceding the price fixing date. Particulars of
the first to eleventh offerings under the ESP Plan were set out in the Directors’ Reports/Directors’ Statements for the financial years
ended 31 December 2004 to 2016. During the financial year, 6,302,173 ordinary shares were delivered to participants under the ESP
Plan. As at the end of the financial year, (i) rights to acquire 7,507,262 ordinary shares at S$8.45 per ordinary share granted under
the eleventh offering (which will expire on 30 June 2018), and (ii) rights to acquire 7,076,821 ordinary shares at S$10.77 per ordinary
share granted under the twelfth offering (which will expire on 30 June 2019) remained outstanding. Further details on the ESP Plan
can be found in Note 13.3 of the Notes to the Financial Statements.

SHARE-BASED COMPENSATION PLANS (continued)

Details of options granted under the 2001 Scheme and acquisition rights granted under the ESP Plan to directors of the Bank
are as follows:
Aggregate
Aggregate number of options
number of options/ exercised/rights
rights granted since converted since Aggregate
Options/rights granted commencement commencement of number of options/
during the financial year of scheme/plan to scheme/plan to rights outstanding at
Name of director ended 31.12.2017 31.12.2017 31.12.2017 31.12.2017 (1)
2001 Scheme
Samuel N. Tsien 772,350 5,337,152 712,735 4,624,417
Tan Ngiap Joo – 811,829 811,829 –
ESP Plan
Samuel N. Tsien 3,342 39,584 24,006 (2) 7,602
(1)
These details have already been disclosed in the section on “Directors’ interests in shares or debentures” above.
(2)
Excludes 4,114 rights and 3,862 rights which were not converted into shares upon expiry of the fifth offering and ninth offering respectively as the
average market price at that time was lower than the acquisition price. This was in line with the terms and conditions of the ESP Plan.
There were no changes to any of the above mentioned interests between the end of the financial year and 21 January 2018.
(c) OCBC Deferred Share Plan
The Bank implemented the OCBC Deferred Share Plan (“DSP”) in 2003. The DSP is a discretionary incentive and retention award
programme extended to executives of the Group at the absolute discretion of the Remuneration Committee.
Awards over an aggregate of 5,761,209 ordinary shares (including awards over 220,000 ordinary shares granted to a director of the
Bank) were granted to eligible executives under the DSP during the financial year ended 31 December 2017. In addition, existing
awards were adjusted following the declarations of final dividend for the financial year ended 31 December 2016, and interim
dividend for the financial year ended 31 December 2017, resulting in an additional 529,890 ordinary shares being subject to awards
under the DSP (including an additional 22,994 ordinary shares being subject to awards held by a director of the Bank holding office
as at the end of the financial year). During the financial year, 5,007,868 deferred shares were released to grantees, of which 271,875
deferred shares were released to a director of the Bank who held office as at the end of the financial year.
Except as disclosed above, there were no unissued shares of the Bank or its subsidiaries under options granted by the Bank or its
subsidiaries as at the end of the financial year.

AUDIT COMMITTEE
The members of the Audit Committee during the financial year and at the date of this statement are:
Chua Kim Chiu, Chairman (Appointed on 22 September 2017)

Lai Teck Poh
Tan Ngiap Joo (Chairman until 22 September 2017)
The Audit Committee performed the functions specified in the Act, the SGX Listing Manual, the Banking (Corporate Governance)
Regulations 2005, the MAS Guidelines for Corporate Governance and the Code of Corporate Governance 2012. In performing these
functions, the Audit Committee met with the Bank’s external and internal auditors, and reviewed the audit plans, the internal audit
programme, as well as the results of the auditors’ examination and their evaluation of the system of internal controls.
The Audit Committee also reviewed the following:
(a) response of the Bank’s management and the assistance provided by officers of the Bank to the external and internal auditors;
(b) the financial statements of the Group and the Bank and the auditors’ report thereon prior to their submission to the Board of
Directors; and
(c) the independence and objectivity of the external auditors.
The Audit Committee has full access to, and the cooperation of, the management and has been given the resources required for it to
discharge its functions. It has full authority and discretion to invite any director and executive officer to attend its meetings.
The Audit Committee is satisfied with the independence and objectivity of the external auditors and has recommended to the Board
of Directors that the auditors, KPMG LLP, be nominated for re-appointment as auditors of the Bank at the forthcoming annual general
meeting of the Bank.
AUDITORS
The auditors, KPMG LLP, have indicated their willingness to accept re-appointment.
On behalf of the Board of Directors,
OOI SANG KUANG SAMUEL N. TSIEN

Director Director
Singapore
13 February 2018

INDEPENDENT AUDITORS’ REPORT
To The Members Of Oversea-Chinese Banking Corporation Limited
Report on the audit of the financial statements

Opinion
We have audited the financial statements of Oversea-Chinese Banking Corporation Limited (the Bank) and its subsidiaries (the Group),
which comprise the consolidated balance sheet of the Group and the balance sheet of the Bank as at 31 December 2017, the
consolidated income statement, consolidated statement of comprehensive income, consolidated statement of changes in equity
and consolidated cash flow statement of the Group and the income statement, statement of comprehensive income and statement
of changes in equity of the Bank for the year then ended, and notes to the financial statements, including a summary of significant
accounting policies as set out on pages 159 to 272.
In our opinion, the accompanying consolidated financial statements of the Group and the balance sheet, income statement, statement
of comprehensive income and statement of changes in equity of the Bank are properly drawn up in accordance with the provisions
of the Companies Act, Chapter 50 (the Act) and Financial Reporting Standards in Singapore (FRSs) including the modification of the
requirements of FRS 39 Financial Instruments: Recognition and Measurement in respect of loan loss provisioning by Notice to Banks
No. 612 ‘Credit Files, Grading and Provisioning’ issued by the Monetary Authority of Singapore, so as to give a true and fair view of the
consolidated financial position of the Group and the financial position of the Bank as at 31 December 2017 and of the consolidated
financial performance, consolidated changes in equity and consolidated cash flows of the Group and the financial performance and
changes in equity of the Bank for the year ended on that date.
Basis for opinion

We conducted our audit in accordance with Singapore Standards on Auditing (SSAs). Our responsibilities under those standards are
further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We are independent of
the Group in accordance with the Accounting and Corporate Regulatory Authority (ACRA) Code of Professional Conduct and Ethics for
Public Accountants and Accounting Entities (ACRA Code) together with the ethical requirements that are relevant to our audit of the
financial statements in Singapore, and we have fulfilled our other ethical responsibilities in accordance with these requirements and
the ACRA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial
statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and
in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Impairment of loans and bills receivable

(Refer to Notes 9, 26, 28 and 29 to the financial statements.)
The key audit matter How the matter was addressed in our audit
At 31 December 2017, the Group’s loans and bills receivable We tested key controls in place over the credit approval, grading
comprised 51% of its total assets. The determination of and monitoring of loans and bills receivable. We also tested the
impairment allowance required on loans and bills receivable is controls over the determination of impairment allowances for
highly subjective due to judgement applied both in identifying individually assessed loans and bills receivable.
impaired exposures and in estimating the related allowances.
These estimates include amounts and timing of expected cash For a sample of exposures, we performed credit file reviews to
flows and collateral values. test the appropriateness of credit grading, and collectibility of
loans. We challenged the Group’s assumptions of the expected
As a result of the significance of loans and bills receivable future cash flows including the realisable value of collaterals and
and the related estimation uncertainty, together with time to sell based on our understanding of the counterparties,
the heightened credit risk in certain industry sectors, the the business environment and externally derived evidence.
impairment of loans and bills receivable is considered a key
audit risk. In view of the sustained downturn in the oil and gas sector, we
scoped in additional loans in this sector for credit assessment.
In 2017, the portfolio that gave rise to a significant degree of
estimation uncertainty was the oil and gas sector portfolio. We recomputed management’s calculation of portfolio
The extended low oil prices and the weak demand of oil and allowances to ascertain that the Group’s portfolio allowances
gas platforms and offshore vessels have impacted a number of were maintained in accordance with the requirements of MAS
borrowers in the portfolio. Notice 612.
We were also focussed on other individually significant In our view, the impairment allowances were within an
exposures that have become or were at risk of being impaired. acceptable range of estimates.
These included credit exposures that were refinanced or
restructured and non-performing loans.

Valuation of financial instruments held at fair value
(Refer to Notes 18, 22, 24, 25, 30 and 41 to the financial statements.)
The fair value of financial instruments is determined through We assessed the controls over the measurement of financial
the application of valuation models and the use of assumptions instruments at their fair values. These controls include
and estimates. Due to the significance of financial instruments independent price verification, governance over valuation
to the Group and the related estimation uncertainty, this is models, model validation and management reporting of
considered a key audit focus area. These financial instruments valuation risk.
include those held by Great Eastern Holdings Limited (GEH).
GEH is audited by another firm of public accountants. For a sample of financial instruments, we used our valuation
specialists to assess that the valuation models were reasonable.
Of the financial instruments that were carried at fair value
in the Group’s balance sheet as at 31 December 2017, the For a selection of pricing inputs, we checked that the inputs
significant majority qualified as Level 1 or Level 2 financial used were appropriately sourced and accurately input into
instruments. These instruments were valued using prices that pricing models. Additionally, we priced a selection of the Group’s
were observable in the market or through models with market derivative positions independently and compared the values to
observable inputs, resulting in a lower valuation risk. the Group’s valuations.
The remaining financial instruments were classified as For a sample of Level 3 instruments, we assessed the
Level 3. These instruments comprised mainly unlisted debt appropriateness of the valuation methodology, and the
and equity investments and derivatives. The valuation of reasonableness of key inputs and assumptions. We also
these instruments involved the application of unobservable considered alternative valuation methods and assessed
inputs such as cash flow forecasts, discount rates and sensitivities to key factors.
volatility, amongst others. As such, there was greater
estimation uncertainty in the determination of the fair In respect of the valuation of financial instruments held by
value of these instruments. GEH, we assessed, through a review of GEH’s auditors’ working
papers, whether the valuation methods used were reasonable.
Overall, in our view, the values of the Group’s financial

instruments were within an acceptable range of estimates.

Valuation of insurance contract liabilities

(Refer to Notes 4, 22, 39 and 41 to the financial statements.)
The Group’s insurance operations are entirely conducted We planned, scoped and issued group audit instructions to
through its subsidiary, Great Eastern Holdings Limited (GEH). GEH’s auditors to obtain an independent auditors’ report of
the significant component. The scope of reporting included
The Group’s insurance business comprises life and general valuation of liabilities of the insurance business.
insurance contracts. There are several sources of uncertainty
that need to be considered in the estimation of the liabilities We reviewed GEH’s auditors’ working papers and involved our
that the Group will ultimately be required to pay as claims. actuarial specialists in our discussions with GEH’s auditors.
The valuation of life insurance contract liabilities is dependent We independently assessed, through a review of procedures
on the valuation method adopted and key assumptions such as carried out by GEH’s auditors, that the valuation methodologies
prevailing interest rates of government securities and estimates and assumptions relating to the measurement and estimation
of mortality, disability, dread disease, expenses, lapse and of insurance contract liabilities were reasonable.
surrenders based on GEH’s internal experience studies and
publicly available data. Based on the reports from GEH’s auditors and our review of
GEH’s auditors’ working papers, we concluded that the valuation
The valuation of general insurance contract liabilities is methods and assumptions used by the Group were reasonable,
dependent on estimates including the ultimate settlement cost and the values of insurance contract liabilities were within an
of claims reported, and claims incurred but not yet reported. acceptable range of outcomes.
Changes in the assumptions used in calculation of the valuation

could result in a material impact to the carrying amount of
insurance contract liabilities and the related movements in the
income statement.
Impairment of goodwill
(Refer to Note 37 to the financial statements.)
At 31 December 2017, the Group’s balance sheet included We assessed the appropriateness of management’s
goodwill of $4.5 billion arising from a number of acquisitions. identification of the Group’s CGUs. We involved our valuation
Goodwill is impaired if its carrying amount is not supported specialists to assess the methodologies applied and
by the recoverable amount of the respective cash generating assumptions used for determining recoverable amounts.
units (CGUs). The recoverable amounts are determined based on
estimates that require significant judgement in application of For the banking CGUs, we assessed management’s future
methodologies, and assumptions. cash flow projections for consistency with historical cash
flows and business plans and investigated reasons for
In respect of goodwill of banking CGUs amounting to significant deviations. We challenged the key assumptions
$4.0 billion, the recoverable amounts were determined using including discount rate and growth rate by comparing with
the value-in-use method, based on estimated future cash external sources and economic metrics. We also reperformed
flows for each CGU discounted at an appropriate discount rate. calculations using the models.
Significant management judgement included the expected
future cash flows, the discount rate and terminal growth rate. For the insurance CGU, we assessed management’s assumptions
on discount rates and investment returns through our review
In respect of the insurance CGU, the recoverable amount was of GEH’s auditors’ working papers on valuation of insurance
estimated using the appraisal value method, based on the contracts. We also performed sensitivity analysis on the impact
adjusted shareholders’ funds and the expected future profits of change in key assumptions to the appraisal value.
generated by the portfolio of the business in force at the
valuation date and the capacity to generate future profitable Based on the results of our test procedures, the carrying amount
new business. Significant assumptions used in the assessment of goodwill was supported by the recoverable amount of the
of these values included the discount rate and the investment respective CGUs.
return rates.

Other information
Management is responsible for the other information contained in the annual report. Other information is defined as all information in
the annual report other than the financial statements and auditors’ report thereon.
We have obtained all other information prior to the date of this auditors’ report except for Our Well-diversified Business, Letter from
Chairman and CEO, Our Year In Review, Sustainability Report, Corporate Governance, Management Discussion and Analysis and
Ordinary/Preference Shareholding Statistics (the Reports), which are expected to be made available to us after that date.
Our opinion on the financial statements does not cover the other information and we do not and will not express any form of
assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in
doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in
the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of this auditors’ report, we
conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report
in this regard.
When we read the Reports, if we conclude that there is a material misstatement therein, we are required to communicate the matter to
those charged with governance and take appropriate actions in accordance with SSAs.
Responsibilities of management and directors for the financial statements

Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the provisions
of the Act and FRSs, and for devising and maintaining a system of internal accounting controls sufficient to provide a reasonable
assurance that assets are safeguarded against loss from unauthorised use or disposition; and transactions are properly authorised
and that they are recorded as necessary to permit the preparation of true and fair profit and loss accounts and balance sheets and to
maintain accountability of assets.
In preparing the financial statements, management is responsible for assessing the Group’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either
intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
The directors’ responsibilities include overseeing the Group’s financial reporting process.
Auditors’ responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with SSAs will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with SSAs, we exercise professional judgement and maintain professional scepticism throughout the
audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis
for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls.
• Obtain an understanding of internal controls relevant to the audit in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s
ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in
our auditors’ report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or
conditions may cause the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the
financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the
Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and
performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit
findings, including any significant deficiencies in internal controls that we identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence,
and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and
where applicable, related safeguards.
From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the
financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors’ report
unless the law or regulations preclude public disclosure about the matter or when, in extremely rare circumstances, we determine that
a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
Report on other legal and regulatory requirements

In our opinion, the accounting and other records required by the Act to be kept by the Bank and by those subsidiaries incorporated in
Singapore of which we are the auditors have been properly kept in accordance with the provisions of the Act.
The engagement partner on the audit resulting in this independent auditors’ report is Leong Kok Keong.
KPMG LLP
Public Accountants and
Chartered Accountants
Singapore
13 February 2018

INCOME STATEMENTS
GROUP BANK
2017 2016 2017 2016
Note $’000 $’000 $’000 $’000
Interest income 9,118,036 8,368,226 5,046,548 4,388,005
Interest expense (3,694,914) (3,316,098) (2,169,170) (1,708,424)
Net interest income 3 5,423,122 5,052,128 2,877,378 2,679,581
Premium income 12,117,323 9,067,287 – –

Investment income 4,116,594 2,359,344 – –
Net claims, surrenders and annuities (5,339,253) (4,820,864) – –
Change in life assurance fund contract liabilities (8,107,704) (4,657,169) – –
Commission and others (1,910,788) (1,449,630) – –
Profit from life assurance 4 876,172 498,968 – –
Premium income from general insurance 149,753 150,325 – –
Fees and commissions (net) 5 1,952,516 1,638,288 908,564 821,159
Dividends 6 76,383 101,352 559,053 617,344
Rental income 83,065 90,455 52,965 57,792
Other income 7 1,074,482 957,777 505,446 490,512
Non-interest income 4,212,371 3,437,165 2,026,028 1,986,807
Total income 9,635,493 8,489,293 4,903,406 4,666,388
Staff costs (2,470,683) (2,346,597) (851,833) (812,837)

Other operating expenses (1,562,933) (1,441,931) (919,268) (848,098)
Total operating expenses 8 (4,033,616) (3,788,528) (1,771,101) (1,660,935)
Operating profit before allowances and amortisation 5,601,877 4,700,765 3,132,305 3,005,453
Amortisation of intangible assets 37 (103,829) (96,264) – –

Allowances for loans and impairment for other assets 9 (671,548) (725,860) (708,255) (450,072)
Operating profit after allowances and amortisation 4,826,500 3,878,641 2,424,050 2,555,381
Share of results of associates 389,221 396,724 – –
Profit before income tax 5,215,721 4,275,365 2,424,050 2,555,381

Income tax expense 10 (802,945) (628,873) (331,727) (268,076)
Profit for the year 4,412,776 3,646,492 2,092,323 2,287,305
Attributable to:
Equity holders of the Bank 4,146,438 3,473,092
Non-controlling interests 266,338 173,400
4,412,776 3,646,492
Earnings per share (cents) 11

Basic 97.6 82.2
Diluted 97.4 82.2
The accompanying notes, as well as the Capital Management and Risk Management sections, form an integral part of these financial statements.

STATEMENTS OF COMPREHENSIVE INCOME
GROUP BANK
2017 2016 2017 2016
Note $’000 $’000 $’000 $’000
Profit for the year 4,412,776 3,646,492 2,092,323 2,287,305
Other comprehensive income:

Available-for-sale financial assets
Gains for the year 447,798 118,204 42,109 60,542
Reclassification of (gains)/losses to income statement
- on disposal (405,385) (198,126) (61,632) (98,007)
- on impairment 50,389 33,471 21,888 4,023
Tax on net movements 20 (13,411) 5,531 1,543 3,342
Cash flow hedges (76) – – –
Defined benefit plans remeasurements (1) (1,891) 2,560 (30) (25)
Currency translation on foreign operations (534,352) 200,441 (73,192) 12,513
Other comprehensive income of associates (145,805) (136,022) – –
Total other comprehensive income, net of tax (602,733) 26,059 (69,314) (17,612)
Total comprehensive income for the year, net of tax 3,810,043 3,672,551 2,023,009 2,269,693
Total comprehensive income attributable to:

Equity holders of the Bank 3,560,205 3,477,230
Non-controlling interests 249,838 195,321
3,810,043 3,672,551
(1)
Item that will not be reclassified to income statement.

BALANCE SHEETS
As at 31 December 2017
GROUP BANK
2017 2016 2017 2016
Note $’000 $’000 $’000 $’000
EQUITY
Attributable to equity holders of the Bank
Share capital 13.1 15,136,347 15,106,818 15,136,347 15,106,818
Other equity instruments 13.5 499,143 499,143 499,143 499,143
Capital reserves 14 361,443 571,850 98,794 105,678
Fair value reserves 119,648 155,845 11,536 7,628
Revenue reserves 15 22,892,107 20,673,429 13,016,975 12,562,210
39,008,688 37,007,085 28,762,795 28,281,477
Non-controlling interests 16 2,767,728 2,634,940 – –
Total equity 41,776,416 39,642,025 28,762,795 28,281,477
LIABILITIES
Deposits of non-bank customers 17 283,642,169 261,485,862 178,146,088 155,752,937
Deposits and balances of banks 17 7,485,428 10,739,590 6,084,643 9,090,295
Due to subsidiaries – – 16,301,146 16,288,469
Due to associates 220,427 205,805 103,091 127,470
Trading portfolio liabilities 621,531 597,699 621,531 580,499
Derivative payables 18 6,453,975 7,474,158 4,988,635 6,008,300
Other liabilities 19 6,064,409 5,590,629 1,855,470 1,747,020
Current tax 1,101,974 914,629 440,072 387,930
Deferred tax 20 1,582,019 1,324,607 54,164 51,111
Debt issued 21 32,234,746 19,947,379 32,498,457 19,531,523
339,406,678 308,280,358 241,093,297 209,565,554
Life assurance fund liabilities 22 73,755,243 61,961,177 – –
Total liabilities 413,161,921 370,241,535 241,093,297 209,565,554
Total equity and liabilities 454,938,337 409,883,560 269,856,092 237,847,031
ASSETS
Cash and placements with central banks 23 19,594,423 16,559,463 14,354,645 11,364,749
Singapore government treasury bills and securities 24 9,839,981 8,065,895 9,088,748 7,702,246
Other government treasury bills and securities 24 17,630,901 16,298,540 8,443,962 7,164,636
Placements with and loans to banks 25 49,377,355 39,800,684 34,755,842 31,209,763
Loans and bills receivable 26–29 234,141,458 216,830,182 143,516,487 131,873,755
Debt and equity securities 30 25,329,037 23,156,669 13,981,240 11,612,196
Assets pledged 46.1 1,055,539 1,788,915 741,352 935,930
Assets held for sale 47 38,559 28,035 1,590 1,150
Derivative receivables 18 6,385,941 7,837,609 5,117,121 6,351,588
Other assets 31 5,650,953 4,889,298 1,471,946 1,591,121
Deferred tax 20 173,770 196,088 64,626 64,280
Associates 33 2,351,624 2,415,468 482,823 594,532
Subsidiaries 34 – – 34,823,916 24,333,259
Property, plant and equipment 35 3,332,119 3,478,656 614,363 648,849
Investment property 36 949,466 1,092,918 530,255 531,801
Goodwill and intangible assets 37 5,159,840 5,472,846 1,867,176 1,867,176
381,010,966 347,911,266 269,856,092 237,847,031
Life assurance fund investment assets 22 73,927,371 61,972,294 – –
Total assets 454,938,337 409,883,560 269,856,092 237,847,031

STATEMENT OF CHANGES IN EQUITY - GROUP

Share Non-
capital and Capital Fair value Revenue controlling Total
In $’000 other equity reserves reserves reserves Total interests equity
Balance at 1 January 2017 15,605,961 571,850 155,845 20,673,429 37,007,085 2,634,940 39,642,025
Total comprehensive income for the year

Profit for the year – – – 4,146,438 4,146,438 266,338 4,412,776
Other comprehensive income

Gains for the year – – 402,245 – 402,245 45,553 447,798
Reclassification of (gains)/losses to
income statement
- on disposal – – (366,172) – (366,172) (39,213) (405,385)
- on impairment – – 48,940 – 48,940 1,449 50,389
Tax on net movements – – (11,684) – (11,684) (1,727) (13,411)
Cash flow hedges – – – (76) (76) – (76)
Defined benefit plans remeasurements – – – (1,609) (1,609) (282) (1,891)
Currency translation on foreign operations – – – (512,128) (512,128) (22,224) (534,352)
Other comprehensive income of associates – – (109,526) (36,223) (145,749) (56) (145,805)
Total other comprehensive income,
net of tax – – (36,197) (550,036) (586,233) (16,500) (602,733)
Total comprehensive income for the year – – (36,197) 3,596,402 3,560,205 249,838 3,810,043
Transactions with owners, recorded

directly in equity
Contributions by and distributions
to owners
Transfers 21,691 (215,334) – 193,643 – – –
Distributions for perpetual capital securities – – – (19,000) (19,000) – (19,000)
Distributions and dividends to
non-controlling interests – – – – – (107,201) (107,201)
DSP reserve from dividends
on unvested shares – – – 5,894 5,894 – 5,894
Ordinary and preference dividends – – – (1,551,230) (1,551,230) – (1,551,230)
Share-based staff costs capitalised – 14,807 – – 14,807 – 14,807
Share buyback held in treasury (223,912) – – – (223,912) – (223,912)
Shares issued to non-executive directors 549 – – – 549 – 549
Shares transferred to DSP Trust – (5,895) – – (5,895) – (5,895)
Shares vested under DSP Scheme – 48,865 – – 48,865 – 48,865
Treasury shares transferred/sold 231,201 (52,850) – – 178,351 – 178,351
Total contributions by and distributions
to owners 29,529 (210,407) – (1,370,693) (1,551,571) (107,201) (1,658,772)
Changes in ownership interests in

subsidiaries that do not result
in loss of control
Changes in non-controlling interests – – – (7,031) (7,031) (9,849) (16,880)
Total changes in ownership interests
in subsidiaries – – – (7,031) (7,031) (9,849) (16,880)
Balance at 31 December 2017 15,635,490 361,443 119,648 22,892,107 39,008,688 2,767,728 41,776,416
Included:
Share of reserves of associates – – (74,740) 849,518 774,778 – 774,778
An analysis of the movements in each component within ‘Share capital and other equity’, ‘Capital reserves’ and ‘Revenue reserves’ is
presented in Notes 12 to 15.

Share Non-
capital and Capital Fair value Revenue controlling Total
In $’000 other equity reserves reserves reserves Total interests equity
Balance at 1 January 2016 15,059,510 526,910 234,357 18,732,172 34,552,949 2,557,862 37,110,811
Total comprehensive income for the year

Profit for the year – – – 3,473,092 3,473,092 173,400 3,646,492
Other comprehensive income

Gains for the year – – 110,548 – 110,548 7,656 118,204
Reclassification of (gains)/losses to
income statement
- on disposal – – (189,012) – (189,012) (9,114) (198,126)
- on impairment – – 31,380 – 31,380 2,091 33,471
Tax on net movements – – 5,724 – 5,724 (193) 5,531
Defined benefit plans remeasurements – – – 2,404 2,404 156 2,560
Currency translation on foreign operations – – – 179,172 179,172 21,269 200,441
Other comprehensive income of associates – – (37,152) (98,926) (136,078) 56 (136,022)
Total other comprehensive income,
net of tax – – (78,512) 82,650 4,138 21,921 26,059
Total comprehensive income for the year – – (78,512) 3,555,742 3,477,230 195,321 3,672,551
Transactions with owners, recorded

directly in equity
Contributions by and distributions
to owners
Transfers 4,091 57,585 – (61,676) – – –
Distributions for perpetual capital securities – – – (19,052) (19,052) – (19,052)
Dividends to non-controlling interests – – – – – (108,926) (108,926)
DSP reserve from dividends
on unvested shares – – – 5,630 5,630 – 5,630
Ordinary and preference dividends – – – (949,898) (949,898) – (949,898)
Share-based staff costs capitalised – 15,020 – – 15,020 – 15,020
Share buyback held in treasury (117,245) – – – (117,245) – (117,245)
Shares issued in-lieu of ordinary dividends 584,054 – – (584,054) – – –
Shares issued to non-executive directors 535 – – – 535 – 535
Shares transferred to DSP Trust – (5,630) – – (5,630) – (5,630)
Shares vested under DSP Scheme – 42,736 – – 42,736 – 42,736
Treasury shares transferred/sold 75,016 (64,771) – – 10,245 – 10,245
Total contributions by and distributions
to owners 546,451 44,940 – (1,609,050) (1,017,659) (108,926) (1,126,585)
Changes in ownership interests in

subsidiaries that do not result
in loss of control
Changes in non-controlling interests – – – (5,435) (5,435) (9,317) (14,752)
Total changes in ownership interests
in subsidiaries – – – (5,435) (5,435) (9,317) (14,752)
Balance at 31 December 2016 15,605,961 571,850 155,845 20,673,429 37,007,085 2,634,940 39,642,025
Included:
Share of reserves of associates – – 34,787 778,240 813,027 (363) 812,664

STATEMENT OF CHANGES IN EQUITY - BANK
Share
capital and Capital Fair value Revenue Total
In $’000 other equity reserves reserves reserves equity
Balance at 1 January 2017 15,605,961 105,678 7,628 12,562,210 28,281,477
Profit for the year – – – 2,092,323 2,092,323

Other comprehensive income – – 3,908 (73,222) (69,314)
Total comprehensive income for the year (1) – – 3,908 2,019,101 2,023,009
Transfers 21,691 (21,691) – – –

Distributions for perpetual capital securities – – – (19,000) (19,000)
DSP reserve from dividends on unvested shares – – – 5,894 5,894
Ordinary and preference dividends – – – (1,551,230) (1,551,230)
Share-based staff costs capitalised – 14,807 – – 14,807
Share buyback held in treasury (223,912) – – – (223,912)
Shares issued to non-executive directors 549 – – – 549
Treasury shares transferred/sold 231,201 – – – 231,201
Balance at 31 December 2017 15,635,490 98,794 11,536 13,016,975 28,762,795
Balance at 1 January 2016 15,059,510 94,749 37,728 11,545,456 26,737,443
Profit for the year – – – 2,287,305 2,287,305

Other comprehensive income – – (30,100) 12,488 (17,612)
Total comprehensive income for the year (1) – – (30,100) 2,299,793 2,269,693
Transfers 4,091 (4,091) – – –

Arising from merger of subsidiaries – – – 264,335 264,335
Distributions for perpetual capital securities – – – (19,052) (19,052)
DSP reserve from dividends on unvested shares – – – 5,630 5,630
Ordinary and preference dividends – – – (949,898) (949,898)
Share-based staff costs capitalised – 15,020 – – 15,020
Share buyback held in treasury (117,245) – – – (117,245)
Shares issued in-lieu of ordinary dividends 584,054 – – (584,054) –
Shares issued to non-executive directors 535 – – – 535
Treasury shares transferred/sold 75,016 – – – 75,016
Balance at 31 December 2016 15,605,961 105,678 7,628 12,562,210 28,281,477
(1)
Refer to Statements of Comprehensive Income for detailed breakdown.

CONSOLIDATED CASH FLOW STATEMENT
In $’000 2017 2016

Cash flows from operating activities
Profit before income tax 5,215,721 4,275,365
Adjustments for non-cash items:
Allowances for loans and impairment for other assets 671,548 725,860
Amortisation of intangible assets 103,829 96,264
Change in hedging transactions, trading, fair value through profit or
loss securities and debt issued 29,963 15,232
Depreciation of property, plant and equipment and investment property 314,693 308,119
Net gain on disposal of government, debt and equity securities (431,487) (198,126)
Net gain on disposal of property, plant and equipment and investment property (56,578) (159,559)
Net (gain)/loss on disposal of interests in subsidiaries and associates (32,985) 18,478
Share-based costs 55,954 14,457
Share of results of associates (389,221) (396,724)
Items relating to life assurance fund
Surplus before income tax 1,360,725 649,829
Surplus transferred from life assurance fund (876,172) (498,968)
Operating profit before change in operating assets and liabilities 5,965,990 4,850,227
Change in operating assets and liabilities:
Deposits of non-bank customers 19,701,967 8,724,264
Deposits and balances of banks (3,254,162) (1,307,121)
Derivative payables and other liabilities (2,068,445) 2,381,917
Trading portfolio liabilities 23,832 (46,986)
Restricted balances with central banks (376,892) (103,936)
Government securities and treasury bills (3,049,927) (3,474,389)
Trading and fair value through profit or loss securities (562,097) 15,239
Placements with and loans to banks (9,223,392) (4,300,068)
Loans and bills receivable (15,916,703) (6,350,258)
Derivative receivables and other assets 1,559,539 (2,185,616)
Net change in investment assets and liabilities of life assurance fund (281,023) (170,976)
Cash used in operating activities (7,481,313) (1,967,703)
Income tax paid (680,982) (734,404)
Net cash used in operating activities (8,162,295) (2,702,107)
Cash flows from investing activities
Acquisitions, net of cash acquired (Notes 34.4 and 34.5) 396,392 2,651,042
Dividends from associates 63,068 114,958
Decrease in associates 43,472 99,536
Purchases of debt and equity securities (21,307,237) (12,406,802)
Purchases of property, plant and equipment and investment property (263,339) (422,046)
Proceeds from disposal of debt and equity securities 20,084,228 12,543,815
Proceeds from disposal of interests in subsidiaries and associates 61,595 23,563
Proceeds from disposal of property, plant and equipment and investment property 94,250 196,894
Net cash (used in)/from investing activities (827,571) 2,800,960
Cash flows from financing activities
Acquisition of non-controlling interests (17,077) (14,752)
Distributions for perpetual securities (19,000) (19,052)
Distributions and dividends paid to non-controlling interests (107,201) (108,926)
Dividends paid to equity holders of the Bank (1,548,162) (949,898)
Net issuance/(redemption) of other debt issued (Note 21.6) 15,242,983 (3,554,954)
Proceeds from treasury shares transferred/sold under the Bank’s employee share schemes 178,351 10,245
Redemption of subordinated debt issued (Note 21.6) (1,521,099) (64,354)
Share buyback held in treasury (223,912) (117,245)
Net cash from/(used in) financing activities 11,984,883 (4,818,936)
Net currency translation adjustments (336,949) (4,286)
Net change in cash and cash equivalents 2,658,068 (4,724,369)
Cash and cash equivalents at 1 January 11,176,529 15,900,898
Cash and cash equivalents at 31 December (Note 23) 13,834,597 11,176,529

NOTES TO THE FINANCIAL STATEMENTS
These notes form an integral part of the financial statements. The initial application of the above standards (including their
consequential amendments) and interpretations did not have
The Board of Directors of Oversea-Chinese Banking Corporation any material impact on the Group’s financial statements.
Limited authorised these financial statements for issue on
13 February 2018. 2.2 BASIS OF CONSOLIDATION
2.2.1 Subsidiaries
Subsidiaries are entities over which the Group controls when it is
1. GENERAL exposed to, or has rights to, variable returns from its involvement
with the entity and has the ability to affect those returns
Oversea-Chinese Banking Corporation Limited (“the Bank”) is
through its power over the entity.
incorporated and domiciled in Singapore and is listed on the
Singapore Exchange Securities Trading Limited. The address of
Subsidiaries are consolidated from the date when control is
the Bank’s registered office is 63 Chulia Street, #10-00 OCBC
transferred to the Group and cease to be consolidated on the
Centre East, Singapore 049514.
date when that control ceases. The Group reassesses whether
it controls an investee if facts and circumstances indicate that
The consolidated financial statements relate to the Bank and its
there have been changes to its power, its rights to variable
subsidiaries (together referred to as the Group) and the Group’s
returns or its ability to use its power to affect its returns.
interests in associates. The Group is principally engaged in the
business of banking, life assurance, general insurance, asset
In preparing the consolidated financial statements, intra-group
management, investment holding, futures and stockbroking.
transactions and balances, together with unrealised income and
expenses arising from the intra-group transactions among group
2. SUMMARY OF SIGNIFICANT companies are eliminated. Unrealised losses are also eliminated
unless the transaction provides evidence of an impairment of
ACCOUNTING POLICIES the asset transferred. Where necessary, adjustments are made to
the financial statements of subsidiaries to ensure consistency of
2.1 BASIS OF PREPARATION
accounting policies within the Group.
The financial statements have been prepared in accordance
with Singapore Financial Reporting Standards (“FRS”) as required
Non-controlling interests (“NCI”) represent the equity
by the Singapore Companies Act (the “Act”) including the
in subsidiaries not attributable, directly or indirectly, to
modification to FRS 39 Financial Instruments: Recognition and
shareholders of the Bank, and are presented separately from
Measurement requirement on loan loss provisioning under Notice
equity attributable to equity holders of the Bank. For NCI that
to Banks No. 612 Credit Files, Grading and Provisioning issued by
arise through minority unit holders’ interest in the insurance
the Monetary Authority of Singapore (“MAS”).
subsidiaries of Great Eastern Holdings Limited (“GEH”)
consolidated investment funds, they are recognised as a liability.
The financial statements are presented in Singapore Dollar,
These interests qualify as a financial liability as they give the
rounded to the nearest thousand unless otherwise stated. The
holder the right to put the instrument back to the issuer for
financial statements have been prepared under the historical cost
cash. Changes in these liabilities are recognised in the income
convention, except as disclosed in the accounting policies below.
statement as expenses.
The preparation of financial statements in conformity with
The Group applies the acquisition method to account for
FRS requires management to exercise its judgement, use
business combinations. The cost of an acquisition is measured
estimates and make assumptions in the application of
at the fair value of the assets given, equity instruments issued
accounting policies on the reported amounts of assets,
or liabilities incurred or assumed at the date of exchange.
liabilities, revenues and expenses. Although these estimates
Acquisition-related costs are expensed as incurred. Identifiable
are based on management’s best knowledge of current events
assets acquired and liabilities and contingent liabilities assumed
and actions, actual results may ultimately differ from these
in a business combination are measured initially at their fair
estimates. Critical accounting estimates and assumptions
values at the acquisition date. The Group recognises any NCI
used that are significant to the financial statements, and
either at fair value or at the NCI’s proportionate share of the
areas involving a high degree of judgement or complexity,
recognised amounts of the acquiree’s identifiable net assets at
are disclosed in Note 2.24.
the date of acquisition on an acquisition-by-acquisition basis.
The following revised financial reporting standards and
The excess of the fair value of consideration transferred,
interpretations were applied with effect from 1 January 2017:
the recognised amount of any NCI in the acquiree and the
acquisition-date fair values of any previously held equity interest
FRS Title in the acquiree over the fair value of the identifiable net assets
FRS 7 (Amendments) Statement of Cash Flows: acquired is recognised as goodwill at the date of acquisition.
Disclosure Initiatives When the excess is negative, a bargain purchase gain is
FRS 12 (Amendments) Income Taxes: Recognition of Deferred recognised immediately in the income statements.
Tax Assets for Unrealised Losses
Various Improvements to FRSs (December 2016)

2. SUMMARY OF SIGNIFICANT ventures are eliminated to the extent of the Group’s interests in
these entities. Unrealised losses are also eliminated unless
ACCOUNTING POLICIES (continued) the transaction provides evidence of an impairment of the
asset transferred. Where necessary, adjustments are made to
2.2 BASIS OF CONSOLIDATION (continued) the financial statements of associates and joint ventures
2.2.1 Subsidiaries (continued) to ensure consistency of accounting policies with those of
Business combinations arising from transfers of interests in the Group.
entities that are under the control of the shareholder that
controls the Group are accounted for as if the acquisition has The results of associates and joint ventures are taken from audited
occurred at the beginning of the earliest comparative year financial statements or unaudited management accounts of
presented or, if later, at the date that common control was the entities concerned, made up to dates of not more than three
established; for this purpose comparatives are restated. The months prior to the reporting date of the Group.
assets and liabilities acquired are recognised at the carrying
amounts recognised previously in the Group controlling The investment in an associate or joint venture is derecognised
shareholder’s consolidated financial statements. The when the Group ceases to have significant influence or joint
components of equity of the acquired entities are added control over the investee. Amounts previously recognised in
to the same components within the Group’s equity and other comprehensive income in respect of the investee are
any gain/loss arising is recognised directly in equity. transferred to the income statement. Any retained interest
in the entity is re-measured at its fair value. The difference
2.2.2 Structured entities between the carrying amount of the retained interest at the
A structured entity is an entity in which voting or similar rights date when significant influence or joint control ceases, and its
are not the dominant factor in deciding control and is generally corresponding fair value, is recognised in the income statement.
established for a narrow and well-defined objective.
2.2.4 Life assurance companies
For the purpose of disclosure, the Group would be considered to Certain subsidiaries of the Group engaged in life assurance
sponsor a structured entity if it has a key role in establishing the business are structured into one or more long-term life assurance
structured entity or its name appears in the overall structure of funds, and shareholders’ fund. All premiums received, investment
the structured entity. returns, claims and expenses, and changes in liabilities to
policyholders are accounted for within the related life assurance
2.2.3 Associates and joint ventures fund. Any surplus, which is determined by the appointed
The Group applies FRS 28 Investments in Associates and Joint Actuary after taking into account these items, may either be
Ventures and FRS 111 Joint Arrangements for its investments distributed between the shareholders and the policyholders
in associates and joint ventures. according to a predetermined formula or retained within the
life assurance funds. The amount distributed to shareholders
Associates are entities over which the Bank has significant is reported as “Profit from life assurance” in the consolidated
influence, but not control or joint control, over the financial income statement.
and operating policies of these entities. Significant influence
is presumed to exist when the Group holds 20% or more of 2.2.5 Accounting for subsidiaries and associates by the Bank
the voting power of another entity. Investments in subsidiaries and associates are stated in the
Bank’s balance sheet at cost less any impairment in value after
Joint ventures are arrangements to undertake economic the date of acquisition.
activities in which the Group has joint control and rights to the
net assets of the entity. 2.3 CURRENCY TRANSLATION
2.3.1 Foreign currency transactions
Investments in associates and joint ventures are accounted for in Transactions in foreign currencies are recorded in the respective
the consolidated financial statements using the equity method functional currencies of the Bank and its subsidiaries at the
of accounting. Under equity accounting, the investment is exchange rates prevailing on the transaction dates. Monetary
initially recognised at cost, and the carrying amount is adjusted items denominated in foreign currencies are translated to the
for post-acquisition changes of the Group’s share of the net respective entities’ functional currencies at the exchange rates
assets of the entity until the date the significant influence or prevailing at the balance sheet date. Exchange differences arising
joint control ceases. The Group’s investment in associates and on settlement and translation of such items are recognised in the
joint ventures includes goodwill identified on acquisition, where income statement.
applicable. When the Group’s share of losses equals or exceeds its
interests in the associates and joint ventures, including any other Non-monetary items denominated in foreign currencies that
unsecured receivables, the Group does not recognise further are measured at fair value are translated at the exchange rate
losses, unless it has incurred obligations or made payments on on the date the fair value is determined. Exchange differences
behalf of the entities. on non-monetary items such as equity investments classified
as available-for-sale financial assets are recognised in other
In applying the equity method of accounting, unrealised gains comprehensive income and presented in the fair value reserve
on transactions between the Group and its associates and joint within equity.

2. SUMMARY OF SIGNIFICANT included in placements with central banks, loans to banks and
non-bank customers. The difference between the amount received
ACCOUNTING POLICIES (continued) and the amount paid under repos and reverse repos is amortised
as interest expense and interest income respectively.
2.3 CURRENCY TRANSLATION (continued)
2.3.2 Foreign operations Securities lending and borrowing transactions are generally
The assets and liabilities of foreign operations are translated secured, with collaterals taking the form of securities or cash.
to Singapore Dollar at exchange rates prevailing at the balance The transfer of securities to or from counterparties is not
sheet date. The income and expenses of foreign operations are reflected on the balance sheet. Cash collateral advanced
translated to Singapore Dollar at average exchange rates for the or received is recorded as an asset or a liability respectively.
year, which approximate the exchange rates at the dates of the
transactions. Goodwill and fair value adjustments arising on 2.6 NON-DERIVATIVE FINANCIAL ASSETS
the acquisition of a foreign operation on or after 1 January 2005 Non-derivative financial assets are classified according to the
are treated as assets and liabilities of the foreign operation and purpose for which the assets were acquired. Management
translated at the closing rate. determines the classification of its financial assets at initial
recognition and evaluates this designation at every reporting date.
Foreign currency differences arising from the translation of a
foreign operation are recognised in other comprehensive income 2.6.1 Loans and receivables
and presented in the currency translation reserve within equity. Loans and receivables are non-derivative financial assets with
When a foreign operation is disposed of, in part or in full, the fixed or determinable payments that are not quoted in an active
relevant amount in the currency translation reserve is included in market. They are initially recognised at acquisition cost and
the gain or loss on disposal of the operation. subsequently measured at amortised cost using the effective
interest method, less impairment allowance.
2.4 CASH AND CASH EQUIVALENTS
In the consolidated cash flow statement, cash and cash equivalents 2.6.2 Available-for-sale financial assets
comprise cash on hand, balances, money market placements and Available-for-sale financial assets are intended to be held for
reverse repo transactions with central banks which are generally an indefinite period of time, and may be sold in response to
short-term financial instruments or repayable on demand. needs for liquidity or changes in interest rates, exchange rates or
market prices.
2.5 FINANCIAL INSTRUMENTS
2.5.1 Recognition At the balance sheet date, the Group recognises unrealised
The Group initially recognises loans and advances, deposits and gains and losses on revaluing unsettled contracts in other
debts issued on the date of origination. All regular way purchases comprehensive income. Upon settlement, available-for-sale
and sales of financial assets with delivery of assets within the assets are carried at fair value (including transaction costs) on
time period established by regulation or market convention are the balance sheet, with cumulative fair value changes taken to
recognised on the settlement date. other comprehensive income and presented in fair value reserve
within equity, and recognised in the income statement when
2.5.2 De-recognition the asset is disposed of, collected or otherwise sold, or when the
Financial assets are de-recognised when the Group’s contractual asset is assessed to be impaired.
rights to the cash flows from the financial assets expire or
when the Group transfers the financial asset to another party The fair value for quoted investments is derived from market bid
without retaining control or transfers substantially all the risks prices. For unquoted securities, fair value is determined based on
and rewards of ownership of the asset. Financial liabilities are quotes from brokers and market makers, discounted cash flow and
de-recognised when the Group’s obligations specified in the other valuation techniques commonly used by market participants.
contract expire or are discharged or cancelled.
2.6.3 Financial assets at fair value through profit or loss
2.5.3 Offsetting Financial assets at fair value through profit or loss are acquired
Financial assets and liabilities are offset and the net amount by the trading business units of the Group for the purpose of
presented in the balance sheet when there is a legally selling them in the near term. The Group may also designate
enforceable right to offset the amounts and an intention to financial assets under the fair value option if they are managed
settle on a net basis or realise the asset and settle the liability on a fair value basis, contain embedded derivatives that would
simultaneously. Income and expenses are presented on a net otherwise be required to be separately accounted for or if by
basis only when permitted by the accounting standards. doing so would eliminate or significantly reduce accounting
mismatch that would otherwise arise.
2.5.4 Sale and repurchase agreements (including securities
lending and borrowing) At the balance sheet date, unrealised profits and losses on
Repurchase agreements (“repos”) are regarded as collateralised revaluing unsettled contracts are recognised in the income
borrowing. The securities sold under repos are treated as pledged statement. Upon settlement, these assets are carried at fair
assets and remain as assets on the balance sheets. The amount value on the balance sheet, with subsequent fair value changes
borrowed is recorded as a liability. Reverse repos are treated as recognised in the income statement.
collateralised lending and the amount of securities purchased is

2. SUMMARY OF SIGNIFICANT For hedges of net investments in foreign operations which are
accounted in a similar way as cash flow hedges, the gain or
ACCOUNTING POLICIES (continued) loss relating to the effective portion of the hedging instrument
is recognised in equity and that relating to the ineffective
2.6 NON-DERIVATIVE FINANCIAL ASSETS (continued) portion is recognised in the income statement. Gains and losses
2.6.3 Financial assets at fair value through profit or loss accumulated in equity are transferred to income statement on
(continued) disposal of the foreign operations.
Fair value is derived from quoted market bid prices. All realised
and unrealised gains and losses are included in net trading 2.8 PROPERTY, PLANT AND EQUIPMENT
income in the income statement. Interest earned whilst holding Property, plant and equipment are stated at cost less
trading assets is included in interest income. accumulated depreciation and impairment losses. The cost of
an item of property, plant and equipment includes the purchase
2.6.4 Held-to-maturity investments price and costs directly attributable to bringing the asset to the
Held-to-maturity investments are non-derivative financial assets location and condition necessary for it to be capable of operating
with fixed or determinable payments and fixed maturities that the in the manner intended by management.
Group’s management has the positive intention and ability to hold
to maturity. These assets are carried at amortised cost using the Subsequent expenditure relating to property, plant and
effective interest method, less any impairment loss. equipment is added to the carrying amount of the asset when
it is probable that future economic benefits, in excess of the
2.7 DERIVATIVE FINANCIAL INSTRUMENTS standard of performance of the asset before the expenditure
All derivative financial instruments are recognised at fair value was made, will flow to the Group and the cost can be reliably
on the balance sheet and classified as derivative receivables measured. Other subsequent expenditure is recognised in
when their fair value is favourable and as derivative payables the income statement during the financial year in which the
when their fair value is unfavourable. expenditure is incurred.
The Group enters into derivative transactions for trading purposes, The residual values, useful lives and depreciation methods
and the realised and unrealised gains and losses are recognised of property, plant and equipment are reviewed and adjusted
in the income statement. The Group also enters into hedging as appropriate, at each balance sheet date, to ensure that
derivative transactions to manage exposures to interest rate, they reflect the expected economic benefits derived from
foreign currency and credit risks arising from its core banking these assets.
activities of lending and accepting deposits. The Group applies fair
value, cash flow or net investment hedge accounting when the Property, plant and equipment are depreciated on a straight-line
transactions meet the specified criteria for hedge accounting. basis over their estimated useful lives as follows:
Furniture and fixtures – 5 to 10 years
For qualifying fair value hedges, changes in the fair values of the Office equipment – 5 to 10 years
derivative and of the hedged item relating to the hedged risk are Computers – 3 to 10 years
recognised in the income statement. If the hedge relationship Renovation – 3 to 5 years
is terminated, the fair value adjustment to the hedged item Motor vehicles – 5 years
continues to be reported as part of the carrying value of the
asset or liability and is amortised to the income statement as Freehold land and leasehold land with leases of more than 100
a yield adjustment over the remaining maturity of the asset or years to expiry are not depreciated. Buildings and other leasehold
liability. For fair value portfolio hedge of interest rate exposure, land are depreciated over 50 years or the period of the lease,
adjustment will be on the straight-line method if amortisation whichever is shorter.
using a re-calculated effective interest rate is not practicable.
An item of property, plant and equipment is de-recognised
“Hedge ineffectiveness” represents the amount by which the changes upon disposal or when no future economic benefit is expected
in the fair value of the hedging derivative differ from changes in from its use. Any gain or loss arising on de-recognition of the
the fair value of the hedged item. The amount of ineffectiveness, asset is included in the income statement in the year the asset
provided it is not so significant as to disqualify the entire hedge for is de-recognised.
hedge accounting, is recorded in the income statement.
2.9 INVESTMENT PROPERTY
For qualifying cash flow hedges, the effective portion of the Investment property is property held either for rental income
change in fair value of the derivative is taken to the hedge reserve or for capital appreciation or for both. Investment properties,
in equity. The gain or loss relating to the ineffective portion is other than those held under the Group’s life assurance funds, are
recognised immediately in the income statement. Amounts stated at cost less accumulated depreciation and impairment
accumulated in the hedge reserve remain in equity until the losses. Freehold land and leasehold land with leases of more
forecasted transaction is recognised in the income statement. than 100 years to expiry are not depreciated. Buildings and other
When the forecasted transaction is no longer expected to occur, leasehold land are depreciated over 50 years or the period of the
the cumulative gain or loss in the hedge reserve is immediately lease, whichever is shorter.
transferred to the income statement.

2. SUMMARY OF SIGNIFICANT of the loan. Portfolio allowances are set aside for unimpaired loans
based on portfolio and country risks, as well as industry practices.
ACCOUNTING POLICIES (continued)
Specific allowances are written back to the income statement
2.9 INVESTMENT PROPERTY (continued) when the loans are no longer impaired or when the loss on loan
Investment property held under the Group’s life assurance is determined to be less than the amount of specific allowance
fund is stated at fair value at the balance sheet date and previously made. Loans are written-off when recovery action has
collectively form an asset class which is an integral part been instituted and the loss can be reasonably determined.
of the overall investment strategy for the asset-liability
management of the life assurance business. The fair value 2.12.2 Other non-derivative financial assets
of the investment properties is determined based on Impairment of other non-derivative financial assets is calculated
objective valuations undertaken by independent valuers as the difference between the asset’s carrying value and
at the reporting date. Changes in the carrying value resulting the estimated recoverable amount. For equity investments
from revaluation are recognised in the income statement classified as available-for-sale, when there is a significant or
of the life assurance fund. prolonged decline in the fair value of the asset below its cost,
the cumulative loss (measured as the difference between the
2.10 GOODWILL AND INTANGIBLE ASSETS acquisition cost and the current fair value, less any impairment
2.10.1 Goodwill loss on that asset previously recognised in the income statement)
Goodwill on acquisition of subsidiaries represents the excess of is removed from the fair value reserve within equity and
the consideration transferred, the amount of any non-controlling recognised in the income statement.
interest in the acquiree and the acquisition-date fair value of
any previously held equity interest over the fair value of the Impairment losses on equity investments recognised in the
identifiable net assets acquired. income statement are not reversed through the income
statement, until the investments are disposed of. For debt
Goodwill is stated at cost less impairment loss. Impairment investments, reversal of an impairment loss that can be related
test is carried out annually, or when there is indication that the objectively to an event occurring after the impairment loss was
goodwill may be impaired. recognised, is recognised in the income statement.
Gains or losses on disposal of subsidiaries and associates include Other assets

the carrying amount of goodwill relating to the entity sold. 2.12.3 Goodwill
For the purpose of impairment testing, goodwill is allocated to
2.10.2 Intangible assets each of the Group’s Cash Generating Units (“CGU”) expected to
Intangible assets are separately identifiable intangible items benefit from synergies of the business combination. The Group’s
arising from acquisitions and are stated at cost less accumulated CGUs correspond with the business segments identified in the
amortisation and impairment losses. Intangible assets with finite primary segment report.
useful lives are amortised over their estimated useful lives. The
estimated useful lives range from 10 to 20 years. The useful life of An impairment loss is recognised in the income statement when
an intangible asset is reviewed at least at each financial year end. the carrying amount of the CGU, including the goodwill, exceeds
the recoverable amount of the CGU. The CGU’s recoverable
2.11 NON-CURRENT ASSETS HELD FOR SALE amount is the higher of its fair value less cost to sell and its
Non-current assets that are expected to be recovered through value in use. Impairment loss on goodwill cannot be reversed in
sale rather than through continuing use are classified as held for subsequent periods.
sale. Immediately before classification as held for sale, the assets
are measured in accordance with the Group’s accounting policies. 2.12.4 Investments in subsidiaries and associates
Thereafter, the assets are generally measured at the lower of Property, plant and equipment
their carrying amount and fair value less cost to sell. Investment property
Intangible assets
2.12 IMPAIRMENT OF ASSETS Investments in subsidiaries and associates, property, plant and
Financial assets equipment, investment property and intangible assets, are
The Group assesses at each balance sheet date whether there is reviewed for impairment on the balance sheet date or whenever
objective evidence that a financial asset or a group of financial there is any indication that the carrying value of an asset may
assets is impaired. not be recoverable. If such an indication exists, the carrying value
of the asset is written down to its recoverable amount (i.e. the
2.12.1 Loans and receivables/financial assets carried at higher of the fair value less cost to sell and the value in use).
amortised cost
Loans are assessed for impairment on a loan-by-loan basis except The impairment loss is recognised in the income statement,
for homogeneous loans below a certain materiality threshold, and is reversed only if there has been a change in the estimates
which are grouped together according to their risk characteristics used to determine the asset’s recoverable amount since the last
and collectively assessed, taking into account the historical loss impairment loss was recognised. The carrying amount of an
experience on such loans. asset is increased to its revised recoverable amount, provided
that this amount does not exceed the carrying value that would
A specific allowance is established when the present value of have been determined (net of amortisation or depreciation) had
recoverable cash flows for a loan is lower than the carrying value no impairment loss been recognised for the asset in prior years.

2. SUMMARY OF SIGNIFICANT the Group determines whether it has significant insurance
risk, by comparing benefits paid with benefits payable if the
ACCOUNTING POLICIES (continued) insured event did not occur. Insurance contracts can also
transfer financial risk.
2.13 INSURANCE RECEIVABLES
Insurance receivables are recognised when due. They are Once a contract has been classified as an insurance contract, it
measured at initial recognition at the fair value received remains an insurance contract for the remainder of its lifetime,
or receivable. Subsequent to initial recognition, insurance even if the insurance risk reduces significantly during this period,
receivables are measured at amortised cost, using the effective unless all rights and obligations are extinguished or expire.
interest method. The carrying value of insurance receivables
is reviewed for impairment whenever events or circumstances For the purpose of FRS 104, the Group adopts maximum policy
indicate that the carrying amount may not be recoverable, benefits as the proxy for insurance risk and cash surrender value
with the impairment loss recognised in the income statement. as the proxy for realisable value of the insurance contract on
Insurance receivables are derecognised when the derecognition surrender. The Group defines insurance risk to be significant
criteria for financial assets has been met. when the ratio of the insurance risk over the deposit component
is not less than 105% of the deposit component at inception
2.14 FINANCIAL LIABILITIES of the insurance contract. Based on this definition, all policy
Financial liabilities are initially recognised at fair value plus contracts issued by insurance subsidiaries within the Group are
transaction costs, and are subsequently measured at amortised cost considered insurance contracts as at the balance sheet date.
using the effective interest method, except when the liabilities are
held at fair value through profit or loss. Financial liabilities are held Certain subsidiaries within the Group, primarily GEH and
at fair value through the income statement when: its subsidiaries (“GEH Group”), write insurance contracts in
(a) they are acquired or incurred for the purpose of selling or accordance with insurance regulations prevailing in their
repurchasing in the near term; respective jurisdictions. Disclosures on the various insurance
(b) the fair value option designation eliminates or significantly contract liabilities are classified into the principal components,
reduces accounting mismatch that would otherwise arise; or as follows:
(c) the financial liability contains an embedded derivative that (a) Life Assurance Fund contract liabilities, comprising
would need to be separately recorded. • Participating Fund contract liabilities;
• Non-participating Fund contract liabilities; and
2.15 PROVISIONS AND OTHER LIABILITIES • Investment-linked Fund contract liabilities.
Provisions are recognised when there is a present legal or (b) General Insurance Fund contract liabilities
constructive obligation as a result of past events, it is probable (c) Reinsurance contracts
that an outflow of resources will be required to settle the
obligation, and a reliable estimate of the amount can be made. The Group does not adopt a policy of deferring acquisition costs
Where a provision is expected to be reimbursed, for example for its insurance contracts.
under an insurance contract, the reimbursement is recognised
as a separate asset only when it is virtually certain that Life Assurance Fund contract liabilities
reimbursement will be received. Insurance contracts are recognised and measured in accordance
with the terms and conditions of the respective contracts and
Provision for insurance agents’ retirement benefits, including are based on guidelines laid down by the respective insurance
deferred benefits, is calculated according to terms and conditions regulations. Premiums, claims and benefit payments, acquisition
stipulated in the respective agent’s agreement. The deferred/ and management expenses and valuation of future policy benefit
retirement benefit accumulated at the balance sheet date payments or premium reserves as the case may be, are recognised
includes accrued interest. in the income statements of the respective insurance funds.
Policy benefits are recognised when a policyholder exercises the Life assurance liabilities are recognised when contracts are
option to deposit the survival benefits with the life assurance entered into and premiums are charged. These liabilities are
subsidiaries when the benefit falls due. Policy benefits are measured by using the gross premium valuation method.
interest bearing at rates adjusted from time to time by the life The liability is determined as the sum of the present value
assurance subsidiaries. Interest payable on policy benefits is of future guaranteed and, where relevant, appropriate level
recognised in the income statements as incurred. of non-guaranteed benefits, less the present value of future
gross considerations arising from the policy discounted at
2.16 INSURANCE CONTRACTS the appropriate discount rate. The liability is based on best
Insurance contracts are those contracts where the Group, estimate assumptions and with due regard to significant recent
mainly the insurance subsidiaries of Great Eastern Holdings experience. An appropriate risk margin allowance for adverse
Limited (“GEH”), has accepted significant insurance risk from deviation from expected experience is made in the valuation
another party (the policyholders) by agreeing to compensate the of non-participating life policies, the guaranteed benefit
policyholders if a specified uncertain future event (the insured liabilities of participating life policies and liabilities of non-unit
event) adversely affects the policyholders. As a general guideline, investment-linked policies.

2. SUMMARY OF SIGNIFICANT A significant portion of insurance contracts issued by subsidiaries

within the Group contain discretionary participating features.
ACCOUNTING POLICIES (continued) These contracts are classified as participating policies. In addition
to guaranteed benefits payable upon insured events associated
2.16 INSURANCE CONTRACTS (continued) with human life such as death or disability, the contracts entitle
Life Assurance Fund contract liabilities (continued) the policyholder to receive benefits, which could vary according
The liability in respect of participating insurance contract to the investment performance of the fund. The Group does
is based on the higher of the guaranteed benefit liabilities or not recognise the guaranteed components separately from the
the total benefit liabilities at the contract level derived as discretionary participating features.
stated above.
The valuation of insurance contract liabilities is determined
In the case of life policies where part of, or all the premiums are according to:
accumulated in a fund, the accumulated amounts, as declared to (a) Singapore Insurance Act (Chapter 142), Insurance (Valuation
policyholders are shown as liabilities if the accumulated amounts and Capital) Regulations 2004 for insurance funds regulated
are higher than the amounts as calculated using the gross in Singapore (“MAS Regulations”); and
premium valuation method. (b) Risk-based Capital Framework for Insurers for insurance
funds regulated in Malaysia.
In the case of short-term life policies covering contingencies
other than death or survival, the liability for such life insurance Each insurance subsidiary within the Group is required under
contracts comprises the provision for unearned premiums and the respective insurance regulations and accounting standards
unexpired risks, together with provision for claims outstanding, to carry out a liability adequacy test using current estimates of
which includes an estimate of the incurred claims that have not future cash flows relating to its insurance contracts; the process
yet been reported to the Group. is referred to as the gross premium valuation or bonus reserve
valuation, depending on the jurisdiction in which the insurance
Adjustments to liabilities at each reporting date are recorded subsidiary operates.
in the respective income statements. Profits originating
from margins for adverse deviations on run-off contracts are The liability adequacy test is applied to both the guaranteed
recognised in the income statements over the lives of the benefits and the discretionary participating features; the
contracts, whereas losses are fully recognised in the income assumptions are based on best estimates, the basis adopted
statements during the first year of run-off. is prescribed by the insurance regulations of the respective
jurisdiction in which the insurance subsidiary operates. The
The liability is extinguished when the contract expires, is Group performs liability adequacy tests on its actuarial reserves
discharged or is cancelled. to ensure that the carrying amount of provisions is sufficient to
cover estimated future cash flows. When performing the liability
The Group issues a variety of short and long duration insurance adequacy test, the Group discounts all contractual cash flows
contracts which transfer risks from the policyholders to the and compares this amount against the carrying value of the
Group to protect policyholders from the consequences of insured liability. Any deficiency is charged to the income statement.
events such as death, disability, illness, accident, including
survival. These contracts may transfer both insurance and The Group issues investment-linked contracts as insurance
investment risk or insurance risk alone, from the policyholders contracts which insure human life events such as death or
to the Group. survival over a long duration; coupled with an embedded
derivative linking death benefit payments on the contract to
For non-participating policy contracts, both insurance and the value of a pool of investments within the investment-linked
investment risks are transferred from policyholders to the fund set up by the insurance subsidiary. As this embedded
Group. For non-participating policy contracts other than medical derivative meets the definition of an insurance contract, it
insurance policy contracts, the payout to policyholders upon need not be separately accounted for from the host insurance
the occurrence of the insured event is pre-determined and contract. The liability valuation for such contracts is adjusted
the transfer of risk is absolute. For medical insurance policy for changes in the fair value of the underlying assets at
contracts, the payout is dependent on the actual medical costs frequencies as stated under the terms and conditions of the
incurred upon the occurrence of the insured event. insurance contracts.
Contracts which transfer insurance risk alone from policyholders

to the Group are commonly known as investment-linked
policies. As part of the pricing for these contracts, the insurance
subsidiaries within the Group include certain charges and fees to
cover for expenses and insured risk. The net investment returns
derived from the variety of investment funds as selected by the
policyholders accrue directly to the policyholders.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
2.16 INSURANCE CONTRACTS (continued)
The table below provides the key underlying assumptions used for valuation of life insurance contract liabilities.
Singapore Malaysia
Valuation method (1)

Gross premium valuation Gross premium valuation
For Participating Fund, the method that produces For Participating Fund, the method that produces
the higher reserves of: the higher reserves of:
(i) Total assets backing policy benefits; (i) Guaranteed and non-guaranteed cash flows
discounted at the appropriate rate of return
(ii) Guaranteed and non-guaranteed cash flows reflecting the strategic asset allocation; and
discounted at the appropriate rate of return
reflecting the strategic asset allocation; and (ii) Guaranteed cash flows discounted using Malaysia
Government Securities (“MGS”) zero coupon spot
(iii) Guaranteed cash flows discounted using the yields (as outlined below).
interest rate outlined under (i) below.
Interest rate (1) (i) Singapore Government Securities (“SGS”) zero Malaysia Government Securities yields determined
coupon spot yields for cash flows up to year based on the following:
15, an interpolation of the 15-year Singapore
Government Securities zero coupon spot yield (i) For cash flows with duration less than 15 years,
and the Long Term Risk Free Discount Rate Malaysia Government Securities zero coupon spot
(“LTRFDR”) for cash flows between 15 and yields of matching duration.
20 years, and the LTRFDR for cash flows year
20 and after. (ii) For cash flows with duration 15 years or more,
Malaysia Government Securities zero coupon spot
(ii) For Universal Life policies denominated in yields of 15 years to maturity.
US Dollar:
a) Observable market yields of US Treasury Yield Data source: Bond Pricing Agency Malaysia
Curve Rates for cash flows up to year 30;
b) U ltimate forward rate (“UFR”) of 3.5%
applicable for cash flows beyond
60 years; and
c) E xtrapolated yields in between.
Data source: MAS website and Bloomberg
Mortality, Disability, Participating Fund: Participating Fund:

Dread disease, Expenses,
Lapse and surrenders (1) (i) Best estimates for Gross Premium Valuation (i) Best estimates for Gross Premium Valuation
method (ii); method (i);
(ii) Best estimates plus provision for adverse (ii) Best estimates plus provision for risk of adverse
deviation (“PAD”) for Gross Premium Valuation deviation (“PRAD”) for Gross Premium Valuation
method (iii). method (ii).
Non-Participating and Non-Unit reserves of Non-participating and Non-unit reserves of

Investment-linked Fund: Investment-linked Fund:
Best estimates plus provision for adverse deviation Best estimates plus provision for risk of adverse
(“PAD”). deviation (“PRAD”).
Data source: Internal experience studies Data source: Internal experience studies
(1)
Refer to Note 2.24 on Critical accounting estimates and judgements.

2. SUMMARY OF SIGNIFICANT due from reinsurers. These amounts are estimated in a manner
consistent with the outstanding claims provision or settled
ACCOUNTING POLICIES (continued) claims associated with the reinsurer’s policies and are in
accordance with the related reinsurance contract.
2.16 INSURANCE CONTRACTS (continued)
General Insurance Fund contract liabilities Reinsurance assets are reviewed for impairment at each
The Group issues short term property and casualty contracts reporting date or more frequently when an indication of
which protect the policyholders against the risk of loss of impairment arises during the financial year. Impairment
property premises due to fire or theft in the form of fire or occurs when there is objective evidence as a result of an
burglary insurance contracts and/or business interruption event that occurred after initial recognition of the reinsurance
contracts; risk of liability to pay compensation to a third party asset that the Group may not receive part or all outstanding
for bodily harm or property damage in the form of public liability amounts due under the terms of the contract. The impairment
insurance contracts. The Group also issues short term medical loss is recorded in the income statements. Gains or losses
and personal accident general insurance contracts. on reinsurance are recognised in the income statements
immediately at the date of contract and are not amortised.
General insurance contract liabilities include liabilities for Ceded reinsurance arrangements do not relieve the Group from
outstanding claims and unearned premiums. its obligations to policyholders.
Outstanding claims provisions are based on the estimated The Group also assumes reinsurance risk in the normal course
ultimate cost of all claims incurred but not settled at the balance of business for life insurance and non-life insurance contracts
sheet date, whether reported or not, together with related claims where applicable. Premiums and claims on assumed reinsurance
handling costs and reduction for the expected value of salvage and are recognised as revenue or expenses in the same manner
other recoveries. Delays can be experienced in the notification and as they would be if the reinsurance were considered direct
settlement of certain types of claims, therefore, the ultimate cost business, taking into account the product classification of the
of these claims cannot be known with certainty at the balance reinsured business. Reinsurance liabilities represent balances
sheet date. The liabilities are calculated at the reporting date using due to reinsurance companies. Amounts payable are estimated
a range of standard actuarial claim projection techniques based in a manner consistent with the related reinsurance contract.
on empirical data and the current assumptions that may include Premiums and claims are presented on a gross basis for both
a margin for adverse deviation. The liabilities are not discounted ceded and assumed reinsurance. Reinsurance assets or
for the time value of money. No provision for equalisation or liabilities are derecognised when the contractual rights
catastrophe reserves is recognised. The liabilities are derecognised are extinguished or expire or when the contract is transferred
when the contracts expire, are discharged or are cancelled. to another party.
The provision for unearned premiums represents premiums 2.17 UNEXPIRED RISK RESERVE
received for risks that have not yet expired at the reporting date. The Unexpired Risk Reserve (“URR”) represents the unearned
The provision is recognised when contracts are entered into and portion of written premiums of general insurance policies,
premiums are charged. The provision is released over the term of gross of commission payable to intermediaries attributable to
the contract and is recognised as premium income. periods after the balance sheet date. The change in provision
for unearned premium is taken to the income statements in
The valuation of general insurance contract liabilities at the the order that revenue is recognised over the period of the risk
balance sheet date is based on best estimates of the ultimate exposure. Further provisions are made for claims anticipated
settlement cost of claims plus a provision for adverse deviation. under unexpired insurance contracts which may exceed the
For both Singapore and Malaysia, as required by the local unearned premiums and the premiums due in respect of
insurance regulations, the provision for adverse deviation is these contracts.
set at 75% level of sufficiency. For Singapore, the valuation
methods used include the Paid Claim Development Method, URR is computed using the 1/24th method and is reduced by the
the Incurred Claim Development Method, the Paid Bornhuetter- corresponding percentage of gross direct business, commissions
Ferguson Method, the Incurred Bornhuetter-Ferguson Method and agency related expenses not exceeding limits specified by
and the Expected Loss Ratio Method. For Malaysia, the valuation regulators in the respective jurisdictions in which the insurance
methods used include the Paid Claim Development Method, entity operates.
the Incurred Claim Development Method, the Paid Bornhuetter-
Ferguson Method, the Incurred Bornhuetter-Ferguson Method 2.18 SHARE CAPITAL AND DIVIDEND
and the Loss Ratio Method. Ordinary shares, non-cumulative non-convertible preference
shares and perpetual capital securities are classified as equity
Reinsurance contracts on the balance sheet.
The Group cedes insurance risk in the normal course of business
for all of its businesses. Reinsurance assets represent balances

2. SUMMARY OF SIGNIFICANT Directors of each insurance subsidiary under the advice of the
Appointed Actuary of the respective subsidiary, in accordance
ACCOUNTING POLICIES (continued) with the insurance regulations and the Articles of Association
of the respective subsidiaries.
2.18 SHARE CAPITAL AND DIVIDEND (continued)
Where share capital recognised as equity is repurchased (b) Non-participating Fund
(treasury shares), the amount of the consideration paid, including Revenue consists of premiums, interest and investment
directly attributable costs, is presented as a deduction from income; including changes in the fair value of certain assets
equity. Treasury shares which are subsequently reissued, sold or as prescribed by the appropriate insurance regulations.
cancelled, are recognised as changes in equity. Expenses include reinsurance costs, acquisition costs, benefit
payments and management expenses. Profit or loss from the
Interim dividends on ordinary shares and dividends on preference non-participating fund is determined from the revenue and
shares are recorded in the year in which they are declared expenses of the non-participating fund and the results of
payable by the Board of Directors. Final dividends are recorded in the annual actuarial valuation of the liabilities in accordance
the year when the dividends are approved by shareholders at the with the requirements of the insurance regulations of the
annual general meeting. respective jurisdictions in which the insurance subsidiaries
operate. In addition, profit transfers from the Singapore and
2.19 RECOGNITION OF INCOME AND EXPENSE Malaysia non-participating funds include changes in the fair
2.19.1 Interest income and expense value of assets measured in accordance with the respective
Interest income and expense are recognised in the income insurance regulations.
statement using the effective interest method. The effective
interest rate is the rate that discounts estimated future (c) Investment-linked Fund
cash payments or receipts through the expected life of the Revenue comprises bid-ask spread, fees for mortality and other
financial instruments or, when appropriate, a shorter period insured events, asset management, policy administration
to the net carrying amount. When calculating the effective and surrender charges. Expenses include reinsurance costs,
interest rate, significant fees and transaction costs integral to acquisition costs, benefit payments and management expenses.
the effective interest rate, as well as premiums or discounts, Profit is derived from revenue net of expenses and provision for
are considered. the annual actuarial valuation of liabilities in accordance with
the requirements of the insurance regulations, in respect of the
For impaired financial assets, interest income is recognised on non-unit-linked part of the fund.
the carrying amount based on the original effective interest rate
of the financial asset. First year premiums of insurance policies are recognised from
inception date and subsequent renewal premiums are recognised
2.19.2 Profit from life assurance when due. Single premiums are recognised on the dates on which
Profit from life assurance business derived from the insurance the policies are effective. Premiums from the investment-linked
funds is categorised as follows: business, universal life and certain Takaful non-participating
products are recognised as revenue when payment is received.
(a) Participating Fund
Profits to shareholders from the participating fund are 2.19.3 Premium income from general insurance
allocated from the surplus or surplus capital, based on the Premiums from the general insurance business are recognised
results of the annual actuarial valuation (such valuation also as revenue upon commencement of insurance cover. Premiums
determines the liabilities relating to all the policyholders’ pertaining to periods after the balance sheet date are adjusted
benefits of the participating fund). Parameters for the through the unexpired risk reserve (Note 2.17). Commission is
valuation are set out in the insurance regulations governing recognised as an expense when incurred, typically upon the risk
the Group’s insurance subsidiaries in the respective underwritten as reflected in the premium recognised.
jurisdictions in which they operate. The provisions in the
Articles of Association of the Group’s insurance subsidiaries Premiums ceded out and the corresponding commission income
are applied in conjunction with the prescriptions in the from general insurance contracts are recognised in the income
respective insurance regulations, such that the distribution statement upon receipt of acceptance confirmation from the
for any year to policyholders of the participating fund and ceding company or in accordance with provisions incorporated in
shareholders approximate 90% and 10% respectively of the treaty contracts. Premiums ceded out pertaining to periods
total distribution from the participating fund. The annual after the balance sheet date are adjusted through the movement
declaration of the quantum of policyholders’ bonus and in unexpired risk reserve.
correspondingly the profits to shareholders to be distributed
out of the participating fund is approved by the Board of

2. SUMMARY OF SIGNIFICANT The Group accrues for interest on the monthly contributions
made by employees to the savings-based ESP Plan. For the
ACCOUNTING POLICIES (continued) DSP, a trust is set up to administer the shares. The DSP Trust is
consolidated in the Group’s financial statements.
2.19 RECOGNITION OF INCOME AND EXPENSE (continued)
2.19.4 Fees and commissions Proceeds received upon the exercise of options and acquisition
The Group earns fees and commissions from a range of services rights, net of any directly attributable transaction costs, are
rendered to its customers. Fees and commissions are generally credited to share capital.
recognised upon the completion of a transaction. For services
provided over a period of time or credit risk undertaken, fees and 2.19.8 Lease payments
commissions are amortised over the relevant period. Expenses Payments made under operating leases (net of any incentives
are offset against gross fees and commissions in the income received from the lessor) are taken to the income statement on
statement only when they are directly related. a straight-line basis over the term of the lease. When a lease is
terminated before its expiry, any payment required to be made
2.19.5 Dividends to the lessor by way of penalty is recognised as an expense in the
Dividends from available-for-sale securities, subsidiaries and period when the termination takes place.
associates are recognised when the right to receive payment is
established. Dividends from trading securities are recognised Minimum lease payments made under finance leases are
when received. apportioned between the finance expense and the reduction of
the outstanding liability. The expense is allocated to each period
2.19.6 Rental over the lease term so as to produce a constant periodic rate of
Rental income on tenanted areas of the buildings owned by the interest on the remaining balance of the liability.
Group is recognised in the income statement on a straight line
basis over the term of the lease. Lease incentives granted are 2.20 INCOME TAX EXPENSE
recognised as an integral part of the total rental income, over the Income tax expense is recognised in the income statement
term of the lease. except to the extent that it relates to items recognised directly
in equity, in which case it is recognised in equity or in other
2.19.7 Employee benefits comprehensive income.
The Group’s compensation package for staff consists of base
salaries, allowances, defined contribution plans such as the Current tax is the expected tax payable on the taxable income
Central Provident Fund, defined benefit plans, commissions, for the year, using tax rates enacted or substantively enacted at
cash bonuses, and share-based compensation plans. These are the reporting date, and any adjustment to tax payable in respect
recognised in the income statement when incurred. Employee of previous years.
leave entitlements are estimated according to the terms of
employment contract and accrued on the balance sheet date. Deferred tax is recognised using the balance sheet method, on
temporary differences between the carrying amounts of assets
For defined benefit plans, the liability recognised in the balance and liabilities for financial reporting purposes and the amounts
sheet is the present value of the defined benefit obligation at used for tax computation. Deferred tax is not recognised for
the balance sheet date less the fair value of plan assets, adjusted the following temporary differences: the initial recognition
for unrecognised actuarial gains or losses and past service costs. of goodwill, the initial recognition of assets or liabilities in
Remeasurements of defined benefit plans are recognised in a transaction that is not a business combination and that
other comprehensive income in the period in which they arise. does not affect accounting or taxable profit, and differences
relating to investments in subsidiaries, associates and joint
Share-based compensation plans include the Bank’s Share Option ventures to the extent that they probably will not reverse in the
Schemes, the Employee Share Purchase Plan (“ESP Plan”) and foreseeable future. Deferred tax is measured at the tax rates
the Deferred Share Plan (“DSP”). Equity instruments granted are that are expected to be applied to the temporary differences
recognised as expense in the income statement based on the when they reverse, based on the laws that have been enacted or
fair value of the equity instrument at the date of the grant. The substantively enacted by the reporting date.
expense is recognised over the vesting period of the grant, with
corresponding entries to equity. A deferred tax asset is recognised to the extent that it is probable
that future taxable profits will be available for utilisation against
At each balance sheet date, the Group revises its estimates the temporary differences. Deferred tax assets are reviewed at
of the number of equity instruments expected to be vested, each reporting date and are reduced to the extent that it is no
and the impact of the change to the original estimates, if any, longer probable that the related tax benefit will be realised.
is recognised in the income statement, with a corresponding
adjustment to equity over the remaining vesting period.

2. SUMMARY OF SIGNIFICANT 2.24.1 Impairment of loans
The Group assesses impairment of loans by calculating the
ACCOUNTING POLICIES (continued) present value of future recoverable cash flows and the fair value
of the underlying collaterals, which is determined based on credit
2.21 FIDUCIARY ACTIVITIES assessment on a loan-by-loan basis. Homogeneous loans below a
The Group acts as trustees and in other fiduciary capacities that materiality threshold are grouped together according to their risk
result in the holding or placing of assets on behalf of individuals, characteristics and collectively assessed taking into account the
trusts, retirement benefit plans and other institutions. The assets historical loss experience on such loans. The portfolio allowances
and income from these assets do not belong to the Group, and set aside for unimpaired loans are based on management’s credit
are therefore excluded from these financial statements. experiences and judgement, taking into account geographical
and industry factors. A minimum 1% portfolio allowance is
2.22 EARNINGS PER SHARE maintained by the Group in accordance with the transitional
The Group presents basic and diluted earnings per share data arrangement set out in MAS Notice 612. The assumptions and
for its ordinary shares. Basic earnings per share is calculated by judgements used by management may affect these allowances.
dividing the profit or loss attributable to ordinary shareholders
of the Bank by the weighted-average number of ordinary shares 2.24.2 Impairment of available-for-sale financial assets
outstanding during the year, adjusted for own shares held. The Group follows the guidance of FRS 39 in determining
Diluted earnings per share is determined by adjusting the profit when an investment is impaired. This determination requires
or loss attributable to ordinary shareholders and the weighted- significant judgement. The Group evaluates, among other
average number of ordinary shares outstanding, adjusted for factors, the duration and extent to which the fair value of an
own shares held, for the effects of all dilutive potential ordinary investment is less than its cost; and the financial health and
shares, which comprise share options granted to employees. near-term business outlook of the investee, including factors
such as industry and sector performance, changes in technology
2.23 SEGMENT REPORTING and operations, and financial cash flows.
The Group’s business segments represent the key customer
and product groups, as follows: Global Consumer/Private 2.24.3 Fair value estimation
Banking, Global Corporate/Investment Banking, Global Fair value is derived from quoted market prices or valuation
Treasury and Markets, Insurance and OCBC Wing Hang. All techniques which refer to observable market data. The fair
operating segments’ results are reviewed regularly by the senior values of financial instruments that are not traded in an
management to make decisions about resources to be allocated active market (for example, over-the-counter derivatives) are
to the segment and to assess its performance, and for which determined by using valuation techniques. Where unobservable
discrete financial information is available. In determining the data inputs have a significant impact on the value obtained
segment results, balance sheet items are internally transfer from the valuation model, such a financial instrument is initially
priced and revenues and expenses are attributed to each recognised at the transaction price, which is the best indicator of
segment based on internal management reporting policies. fair value. The difference between the transaction price and the
Transactions between business segments are recorded within model value, commonly referred to as “day one profit and loss” is
the segment as if they are third party transactions and are not recognised immediately in the income statement.
eliminated on consolidation.
The timing of recognition of deferred day one profit and loss
A geographical segment engages in providing products and is determined individually. It is amortised over the life of the
services within a particular economic environment that transaction, released when the instrument’s fair value can
is subject to different risks from those of other economic be determined using market observable inputs, or when the
environments. Geographical segment information is prepared transaction is derecognised.
based on the country in which the transactions are booked
and presented after elimination of intra-group transactions 2.24.4 Liabilities of insurance business
and balances. The estimation of the ultimate liabilities arising from claims
made under life and general insurance contracts is one of the
2.24 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS Group’s critical accounting estimates. There are several sources of
Certain estimates are made in the preparation of the financial uncertainty that need to be considered in the estimation of the
statements. These often require management judgement in liabilities that the Group will ultimately be required to pay as claims.
determining the appropriate methodology for valuation of
assets and liabilities. A brief description of the Group’s critical
accounting estimates is set out below.

2. SUMMARY OF SIGNIFICANT in future (for example, to reflect one-off occurrences, changes

in external or market factors, economic conditions as well
ACCOUNTING POLICIES (continued) as internal factors such as portfolio mix, policy features and
claims handling procedures) in order to arrive at the estimated
2.24 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS ultimate cost of claims that present the likely outcome from
(continued) the range of possible outcomes, taking account of all
2.24.4 Liabilities of insurance business (continued) uncertainties involved.
For life insurance contracts, estimates are made for future
deaths, morbidity, disabilities, lapses, voluntary terminations, 2.24.5 Impairment of goodwill and intangible assets
investment returns and administration expenses. The Group The Group performs an annual review of the carrying
relies on standard industry reinsurance and national mortality value of its goodwill and intangible assets, against the
and morbidity tables which represent historical experience, and recoverable amounts of the CGU to which the goodwill
makes appropriate adjustments for its respective risk exposures and intangible assets have been allocated. Recoverable
and portfolio experience in deriving the mortality and morbidity amounts of CGUs are determined based on the present
estimates. These estimates provide the basis for the valuation value of estimated future cash flows expected to arise from
of the future benefits to be paid to policyholders, and to ensure the respective CGUs’ continuing operations. Management
adequate provisions which are monitored against current exercises its judgement in estimating the future cash flows,
and future premiums. For those contracts that insure risk on growth rates and discount rates used in computing the
longevity and disability, estimates are made based on recent recoverable amounts of the CGUs.
past experience and emerging trends. Epidemics and changing
patterns of lifestyle could result in significant changes to the 2.24.6 Income taxes
expected future exposures. The Group is subject to income taxes in several jurisdictions.
Significant judgement is required in determining the capital
Each year, these estimates are assessed for adequacy and allowances and deductibility of certain expenses in estimating
changes will be reflected as adjustments to the insurance fund the provision for income taxes. There are many transactions
contract liabilities. and calculations for which the ultimate tax determination is
uncertain during the ordinary course of business. The Group
For general insurance contracts, estimates have to be made recognises liabilities for anticipated tax issues based on
for both the expected ultimate cost of claims reported at the estimates of whether additional taxes will be due. Where the
balance sheet date and for the expected ultimate cost of claims final tax outcome of these matters is different from the amounts
incurred but not yet reported at the balance sheet date (“IBNR”). that were initially recorded, such differences will impact the
income tax and deferred tax provisions in the period in which the
It can take a significant time before the ultimate claims costs determination is made.
can be established with certainty and for some type of policies,
IBNR claims form the majority of the insurance subsidiaries’ 2.24.7 Insurance contract classification
balance sheet liability. The ultimate cost of outstanding claims Contracts are classified as insurance contracts where they
is estimated using a range of standard actuarial claims transfer significant insurance risk from the policyholder to
projection techniques such as Chain Ladder and Bornhuetter- the Group. The Group exercises judgement about the level of
Ferguson methods. insurance risk transferred. The level of insurance risk is assessed
by considering whether upon the occurrence of the insured
The main assumption underlying these techniques is that a event, the Group is required to pay significant additional
company’s past development experience can be used to project benefits. These additional benefits include claims liability and
future claims development and hence, ultimate claim costs. assessment costs, but exclude the loss of the ability to charge
As such, these methods extrapolate the development of paid the policyholder for future services. The assessment covers
and incurred losses, average costs per claim and claim numbers the whole of the expected term of the contract where such
based on the observed development of earlier years and additional benefits could be payable. Some contracts
expected loss ratios. Historical claims development is mainly contain options for the policyholder to purchase insurance
analysed by accident years but can also be further analysed risk protection at a later date; these insurance risks are deemed
by significant business lines and claims type. Large claims are not significant.
usually separately addressed, either by being reserved at the
face of loss adjustor estimates or separately projected in
order to reflect their future development. In most cases, no
explicit assumptions are made regarding future rates of claims
inflation or loss ratios. Additional qualitative judgement is
used to assess the extent to which past trends may not apply

3. NET INTEREST INCOME
GROUP BANK
2017 2016 2017 2016
$’000 $’000 $’000 $’000
Interest income
Loans to non-bank customers 6,844,896 6,527,133 3,530,439 3,235,481
Placements with and loans to banks 1,090,406 771,551 918,347 617,684
Other interest-earning assets 1,182,734 1,069,542 597,762 534,840
9,118,036 8,368,226 5,046,548 4,388,005
Interest expense
Deposits of non-bank customers (2,960,002) (2,722,650) (1,323,755) (1,063,386)
Deposits and balances of banks (141,654) (124,285) (256,093) (206,198)
Other borrowings (593,258) (469,163) (589,322) (438,840)
(3,694,914) (3,316,098) (2,169,170) (1,708,424)
Analysed by classification of financial instruments

Income – Assets not at fair value through profit or loss 8,760,186 8,084,569 4,759,649 4,174,796
Income – Assets at fair value through profit or loss 357,850 283,657 286,899 213,209
Expense – Liabilities not at fair value through profit or loss (3,672,584) (3,298,456) (2,147,135) (1,690,874)
Expense – Liabilities at fair value through profit or loss (22,330) (17,642) (22,035) (17,550)
Net interest income 5,423,122 5,052,128 2,877,378 2,679,581
Included in interest income were interest on impaired assets of $19.5 million (2016: $17.5 million) and $15.1 million (2016: $11.4 million) for
the Group and Bank respectively.
4. PROFIT FROM LIFE ASSURANCE

GROUP
2017 2016
$ million $ million
Income
Annual 6,302.3 6,142.5
Single 6,001.0 3,159.1
Gross premiums 12,303.3 9,301.6
Reinsurances (186.0) (234.3)
Premium income (net) 12,117.3 9,067.3
Investment income (net) 4,116.6 2,359.3
Total income 16,233.9 11,426.6
Expenses
Gross claims, surrenders and annuities (5,468.4) (4,917.6)
Claims, surrenders and annuities recovered from reinsurers 129.1 96.7
Net claims, surrenders and annuities (5,339.3) (4,820.9)
Change in life assurance fund contract liabilities (Note 22) (8,107.7) (4,657.1)
Commission and agency expenses (893.0) (831.9)
Depreciation – property, plant and equipment (Note 35) (66.2) (53.1)
Other expenses (1) (466.5) (406.4)
Total expenses (14,872.7) (10,769.4)
Surplus from operations 1,361.2 657.2

Share of results of associates (0.5) (7.4)
Income tax expense (484.5) (150.8)
Profit from life assurance 876.2 499.0
(1)
Included in other expenses were directors’ emoluments of $0.5 million (2016: $0.5 million).
Profit from life assurance is presented net of tax in the income statement as the tax liability is borne by the respective life funds.

5. FEES AND COMMISSIONS (NET)

GROUP BANK
2017 2016 2017 2016
$’000 $’000 $’000 $’000
Fee and commission income 2,059,514 1,702,598 925,062 821,871
Fee and commission expense (106,998) (64,310) (16,498) (712)
Fees and commissions (net) 1,952,516 1,638,288 908,564 821,159
Analysed by major sources:

Brokerage 72,417 65,257 333 192
Credit card 160,761 158,962 125,370 124,367
Fund management 108,294 98,721 48 95
Guarantees 18,954 19,761 9,610 11,818
Investment banking 94,138 62,560 74,230 49,589
Loan-related 291,672 303,849 207,513 235,692
Service charges 100,449 95,945 81,118 76,662
Trade-related and remittances 216,490 208,657 154,998 149,895
Wealth management 852,045 587,790 251,528 170,091
Others 37,296 36,786 3,816 2,758
1,952,516 1,638,288 908,564 821,159
6. DIVIDENDS
GROUP BANK
2017 2016 2017 2016
$’000 $’000 $’000 $’000
Subsidiaries – – 529,499 557,558
Associates – – 19,330 34,279
Trading and fair value through profit or loss securities 12,000 9,697 5,790 3,026
Available-for-sale securities 64,383 91,655 4,434 22,481
76,383 101,352 559,053 617,344
7. OTHER INCOME
GROUP BANK
2017 2016 2017 2016
$’000 $’000 $’000 $’000
Foreign exchange (1) 253,571 344,364 (739) 185,106
Hedging activities (2)
Hedging instruments 100,872 (116,468) 95,249 (117,745)
Hedged items (101,600) 116,450 (95,648) 117,619
Fair value hedges (728) (18) (399) (126)
Interest rate and other derivatives (3) 104,274 245,764 67,828 143,316
Trading and fair value through profit or loss securities 156,696 (62,814) 91,135 (99,011)
Others 1,008 1,764 652 1,603
Net trading income 514,821 529,060 158,477 230,888
Disposal of securities classified as available-for-sale 405,431 198,126 61,678 98,007
Disposal of securities classified as loans and receivables 26,056 – – –
Disposal of interests in subsidiaries and associates 32,985 (18,478) 270,730 4,866
Disposal of plant and equipment (240) (1,256) (97) (1,384)
Disposal of property 56,818 160,815 10,937 138,689
Computer-related services income 21,880 47,510 – –
Property-related income 10,033 10,458 293 369
Others 6,698 31,542 3,428 19,077
1,074,482 957,777 505,446 490,512
(1)
“Foreign exchange” includes gains and losses from spot and forward contracts and translation of foreign currency assets and liabilities.
(2)
“Hedging activities” arise from the use of derivatives to hedge exposures to interest rate and foreign exchange risks, which are inherent in the
underlying “Hedged items”.
(3)
“Interest rate and other derivatives” include gains and losses from interest rate derivative instruments, equity options and other derivative instruments.

8. STAFF COSTS AND OTHER OPERATING EXPENSES
GROUP BANK
2017 2016 2017 2016
$’000 $’000 $’000 $’000
8.1 STAFF COSTS
Salaries and other costs 2,220,125 2,111,861 743,307 715,602
Share-based expenses 55,404 51,115 26,370 26,834
Contribution to defined contribution plans 179,665 167,824 68,369 56,461
2,455,194 2,330,800 838,046 798,897
Directors’ emoluments:
Remuneration of Bank’s directors 10,502 10,387 10,259 10,284
Fees of Bank’s directors (1) 4,987 5,410 3,528 3,656
15,489 15,797 13,787 13,940
Total staff costs 2,470,683 2,346,597 851,833 812,837
8.2 OTHER OPERATING EXPENSES

Property, plant and equipment and investment property: (2)
Depreciation 314,693 308,119 137,525 131,372
Maintenance and hire 121,084 117,277 39,167 36,422
Rental expenses 98,509 100,160 80,931 69,330
Others 258,224 237,643 110,351 98,037
792,510 763,199 367,974 335,161
Auditors’ remuneration
Payable to auditors of the Bank 3,134 3,094 2,307 2,257
Payable to associated firms of auditors of the Bank 2,819 3,202 401 353
Payable to other auditors 1,435 1,337 60 58
7,388 7,633 2,768 2,668
Other fees
Payable to auditors of the Bank (3) 1,068 1,132 872 745
Payable to associated firms of auditors of the Bank 458 1,018 128 91
1,526 2,150 1,000 836
Hub processing charges – – 205,716 211,126
General insurance claims 71,260 73,407 – –
Others (4) 690,249 595,542 341,810 298,307
761,509 668,949 547,526 509,433
Total other operating expenses 1,562,933 1,441,931 919,268 848,098
8.3 STAFF COSTS AND OTHER OPERATING EXPENSES 4,033,616 3,788,528 1,771,101 1,660,935
(1)
Includes remuneration shares amounting to $0.5 million (2016: $0.5 million) issued to directors.
(2)
Direct operating expenses on leased investment property for the Group and the Bank amounted to $20.1 million (2016: $20.5 million) and
$3.3 million (2016: $4.3 million) respectively. Direct operating expenses on vacant investment property for the Group and the Bank amounted to
$1.0 million (2016: $2.0 million) and $0.6 million (2016: $0.3 million) respectively.
(3)
Other fees payable to auditors of the Bank relate mainly to engagements in connection with the Bank’s note issuances, taxation compliance and
advisory services, miscellaneous attestations and audit certifications.
(4)
Included in other expenses were printing, stationery, communication, advertisement and promotion expenses, legal and professional fees and
changes in third-party interests in consolidated investment funds.

9. ALLOWANCES FOR LOANS AND IMPAIRMENT FOR OTHER ASSETS

GROUP BANK
2017 2016 2017 2016
$’000 $’000 $’000 $’000
Specific allowances for loans (Note 28) 1,407,257 484,215 1,244,744 309,646
(Write-back)/portfolio allowances for loans (Note 29) (786,004) 171,466 (608,654) 96,287
Impairment charge for securities classified as available-for-sale 50,389 33,471 21,888 4,023
Impairment charge for securities classified as loans
and receivables (Note 32) – 34,543 – 26,671
(Write-back)/impairment charge for associates,
subsidiaries and other assets (Note 32) (94) 2,165 50,277 13,445
Net allowances and impairment 671,548 725,860 708,255 450,072
10. INCOME TAX EXPENSE

GROUP BANK
2017 2016 2017 2016
$’000 $’000 $’000 $’000
Current tax expense 896,764 707,231 370,521 312,723
Deferred tax credit (Note 20) (54,911) (44,168) (116) (19,903)
841,853 663,063 370,405 292,820
Under/(over) provision in prior years (38,908) (34,190) (38,678) (24,744)
Charge to income statements 802,945 628,873 331,727 268,076
The tax on operating profit differs from the amount that would arise using the Singapore corporate tax rate as follows:
GROUP BANK
2017 2016 2017 2016
$’000 $’000 $’000 $’000
Operating profit after allowances and amortisation 4,826,500 3,878,641 2,424,050 2,555,381
Prima facie tax calculated at tax rate of 17% 820,505 659,369 412,089 434,415
Effect of:
Different tax rates in other countries 126,910 76,690 36,385 3,945
Income not subject to tax (31,593) (91,149) (130,292) (160,681)
Income taxed at concessionary rates (86,403) (46,748) (82,900) (46,601)
Singapore life assurance funds (79,982) (22,075) – –
Non-deductible expenses and losses 55,929 22,019 91,418 2,467
Others 36,487 64,957 43,705 59,275
841,853 663,063 370,405 292,820
The deferred tax expense/(credit) comprised:

Accelerated tax depreciation 458 6,621 3,130 4,880
Depreciable assets acquired in business combinations (11,787) (11,936) (2,159) (3,509)
Tax losses (1,573) (9,165) (1,854) (10,485)
Unrealised gains/(losses) on financial assets (31,896) 2,567 6,843 1,372
Write-back/(allowances) for assets 38,846 (35,556) (1,375) (11,548)
Other temporary differences (48,959) 3,301 (4,701) (613)
(54,911) (44,168) (116) (19,903)

11. EARNINGS PER SHARE
GROUP
2017 2016
$’000
Profit attributable to ordinary equity holders of the Bank 4,146,438 3,473,092
Preference dividends declared in respect of the period (43,068) (40,110)
Perpetual capital securities distributions declared in respect of the period (19,000) (19,052)
Profit attributable to ordinary equity holders of the Bank after preference dividends
and other equity distributions 4,084,370 3,413,930
Weighted average number of ordinary shares (’000)

For basic earnings per share 4,186,249 4,151,864
Adjustment for assumed conversion of share options and acquisition rights 6,215 1,109
For diluted earnings per share 4,192,464 4,152,973
Earnings per share (cents)

Basic 97.6 82.2
Diluted 97.4 82.2
Basic earnings per share is calculated by dividing profit attributable to ordinary equity holders of the Bank net of preference dividends
and perpetual capital securities distributions by the weighted average number of ordinary shares in issue during the financial year.
For the purpose of calculating the diluted earnings per ordinary share, the weighted average number of ordinary shares in issue is
adjusted to take into account the dilutive effect arising from share options and acquisition rights, with the potential ordinary shares
weighted for the period outstanding.
12. UNAPPROPRIATED PROFIT

GROUP BANK
2017 2016 2017 2016
$’000 $’000 $’000 $’000
Profit attributable to equity holders of the Bank 4,146,438 3,473,092 2,092,323 2,287,305
Add: Unappropriated profit at 1 January 20,259,830 18,401,132 11,330,145 10,592,552
Total amount available for appropriation 24,406,268 21,874,224 13,422,468 12,879,857
Appropriated as follows:
Ordinary dividends:
2015 final tax exempt dividend of 18 cents – (741,004) – (741,004)
2016 interim tax exempt dividend of 18 cents – (752,838) – (752,838)
2016 final tax exempt dividend of 18 cents (753,830) – (753,830) –
2017 interim tax exempt dividend of 18 cents (754,332) – (754,332) –
Preference dividends:
Class M 4.0% tax exempt (2016: 4.0% tax exempt) (43,068) (40,110) (43,068) (40,110)
Distributions for other equity instruments:

3.80% perpetual capital securities (19,000) (19,052) (19,000) (19,052)
Transfer from/(to):
Capital reserves (Note 14) 193,643 (61,676) – –
General reserves (Note 15.1) (3,570) 3,317 3,977 3,317
Defined benefit plans remeasurements (1,609) 2,404 (30) (25)

Transactions with non-controlling interests (7,204) (5,435) – –
(1,388,970) (1,614,394) (1,566,283) (1,549,712)
At 31 December (Note 15) 23,017,298 20,259,830 11,856,185 11,330,145
At the annual general meeting to be held, a final tax exempt dividend of 19 cents per ordinary share in respect of the financial year
ended 31 December 2017, totalling $795.5 million, will be proposed. The dividends will be accounted for as a distribution in the
2018 financial statements.

13. SHARE CAPITAL AND OTHER EQUITY

13.1 SHARE CAPITAL
2017 2016 2017 2016
GROUP AND BANK Shares (’000) Shares (’000) $’000 $’000
Ordinary shares
At 1 January 4,193,729 4,121,561 14,392,329 13,803,649
Shares issued in-lieu of ordinary dividends – 72,110 – 584,054
Shares issued to non-executive directors 55 58 549 535
Transfer from share-based reserves
for options and rights exercised (Note 14) – – 21,691 4,091
At 31 December 4,193,784 4,193,729 14,414,569 14,392,329
Treasury shares
At 1 January (11,022) (6,086) (285,511) (243,282)
Share buyback (20,560) (13,614) (223,912) (117,245)
Share Option Schemes 13,133 1,497 115,513 9,999
Share Purchase Plan 6,302 26 62,838 246
Treasury shares transferred to DSP Trust 5,076 7,155 52,850 64,771
At 31 December (7,071) (11,022) (278,222) (285,511)
Preference shares
Class M
At 1 January/31 December 1,000,000 1,000,000 1,000,000 1,000,000
Issued share capital, at 31 December 15,136,347 15,106,818
The holders of ordinary shares (excluding treasury shares) are entitled to receive dividends as declared from time to time and to one
vote per share at meetings of the Bank. All shares (excluding treasury shares) rank equally with regard to the Bank’s residual assets.
Details of the Bank’s non-cumulative non-convertible preference shares outstanding as at 31 December 2017 are set out in the
table below. Preference dividends are payable semi-annually on 20 June and 20 December, subject to directors’ approval. Preference
shareholders will only be entitled to attend and vote at general meetings of the Bank if dividends have not been paid in full when due
for a consecutive period of 12 months or more.
Preference Issue Dividend rate Liquidation

shares date p.a. value per share Redemption option by the Bank on these dates
Class M 17 Jul 2012 4.0% SGD1 17 Jan 2018; 17 Jul 2022; dividend payment dates after 17 Jul 2022
The issued ordinary shares qualify as Common Equity Tier 1 capital for the Group, while the Class M non-cumulative non-convertible
preference shares qualify as Additional Tier 1 capital for the Group. The 4.0% Class M non-cumulative non-convertible preference shares
were fully redeemed by the Bank on 17 January 2018.
All issued shares were fully paid.

Associates of the Group did not hold shares in the capital of the Bank as at 31 December 2017 and 31 December 2016.

13. SHARE CAPITAL AND OTHER EQUITY (continued)
13.2 SHARE OPTION SCHEME
During the year, the Bank granted 9,587,008 (2016: 9,524,094) options to acquire ordinary shares in the Bank pursuant to OCBC Share
Option Scheme 2001. This included 772,350 (2016: 1,024,798) options granted to a director of the Bank. The fair value of options
granted, determined using the binomial valuation model, was $7.3 million (2016: $12.4 million). Significant inputs to the valuation
model are set out below:
2017 2016
Acquisition price ($) 9.60 – 12.32 8.81
Share price ($) 9.64 – 12.39 8.95
Expected volatility based on last 250 days historical volatility as of acceptance date (%) 12.94 – 14.73 20.08
Risk-free rate based on SGS bond yield at acceptance date (%) 2.11 1.83
Expected dividend yield (%) 3.22 – 4.27 4.02
Exercise multiple (times) 1.74 1.78
Option life (years) 10 10
Movements in the number of options and the average acquisition prices are as follows:
2017 2016
Number Average Number Average
of options price of options price
At 1 January 40,887,286 $9.116 34,806,479 $9.109
Granted and accepted 9,587,008 $9.603 9,479,487 $8.814
Exercised (13,224,648) $8.860 (1,544,200) $6.739
Forfeited/lapsed (664,684) $9.825 (1,854,480) $9.411
At 31 December 36,584,962 $9.323 40,887,286 $9.116
Exercisable options at 31 December 18,796,148 $9.225 25,188,639 $8.996

Average share price underlying the options exercised $10.712 $8.690
At 31 December 2017, the weighted average remaining contractual life of outstanding share options was 7.0 years (2016: 6.4 years).
The aggregate outstanding number of options held by directors of the Bank was 4,624,417 (2016: 4,366,217).


13.3 EMPLOYEE SHARE PURCHASE PLAN
In June 2017, the Bank launched its twelfth offering of ESP Plan for Group employees, which commenced on 1 July 2017 and expire on
30 June 2019. Under the offering, the Bank granted 7,580,663 (2016: 10,644,475) rights to acquire ordinary shares in the Bank. There
were 3,342 (2016: 4,260) rights granted to a director of the Bank. The fair value of rights, determined using the binomial valuation
model was $5.5 million (2016: $9.2 million). Significant inputs to the valuation model are set out below:
2017 2016
Acquisition price ($) 10.77 8.45
Share price ($) 10.72 8.45
Expected volatility based on last 250 days historical volatility as of acceptance date (%) 13.06 20.66
Risk-free rate based on 2-year swap rate (%) 1.26 0.99
Expected dividend yield (%) 3.36 4.26
Movements in the number of acquisition rights of the ESP Plan are as follows:
2017 2016
Number of Number of
acquisition Average acquisition Average
rights price rights price
At 1 January 15,662,202 $9.106 14,221,456 $9.814
Exercised and conversion upon expiry (6,302,173) $9.855 (26,443) $9.337
Forfeited (2,356,609) $9.545 (9,177,286) $9.443
Subscription 7,580,663 $10.770 10,644,475 $8.450
At 31 December 14,584,083 $9.576 15,662,202 $9.106
Average share price underlying acquisition rights exercised/converted $10.992 $8.876
At 31 December 2017, the weighted average remaining contractual life of outstanding acquisition rights was 1.0 years (2016: 1.1 years).
There were 7,602 (2016: 7,775) rights held by a director of the Bank.
13.4 DEFERRED SHARE PLAN

Total awards of 5,761,209 (2016: 7,473,690) ordinary shares, which included 220,000 (2016: 318,541) ordinary shares to a director of the
Bank, were granted to eligible executives under the DSP for the financial year ended 31 December 2017. The fair value of the shares at
grant date was $54.9 million (2016: $66.9 million).
During the year, 5,007,868 (2016: 4,350,930) deferred shares were released to employees, of which 271,875 (2016: 273,612) deferred
shares were released to a director of the Bank who held office as at the end of the financial year. At 31 December 2017, a director of the
Bank had deemed interest in 709,143 (2016: 738,024) deferred shares.
The nature, general terms and conditions of Share Option Scheme, Employee Share Purchase Plan and Deferred Share Plan are provided
in the Directors’ Statement and the Corporate Governance section of the Annual Report.
The accounting treatment of share-based compensation plan is set out in Note 2.19.7.

13.5 OTHER EQUITY INSTRUMENTS
GROUP AND BANK
2017 2016
$’000 $’000
SGD500 million 3.80% non-cumulative non-convertible perpetual capital securities (“Capital Securities”) 499,143 499,143
The Capital Securities issued by the Bank on 25 August 2015 are non-cumulative non-convertible perpetual capital securities.
They qualify as Additional Tier 1 Capital under the Monetary Authority of Singapore (“MAS”) Notice on Risk Based Capital Adequacy
Requirements for Banks Incorporated in Singapore (“MAS Notice 637”) on the basis that the Bank is subject to the application of
MAS Notice 637.
The Capital Securities may, subject to MAS approval, be redeemed at the option of the Bank on or after 25 August 2020 (“First Reset
Date”). Their terms include a non-viability loss-absorbing feature. Under this feature, OCBC must write off the securities when:
(1) the MAS notifies the Bank in writing that it is of the opinion that a write-off is necessary, without which the Bank would become
non-viable; or (2) a decision by the MAS to make a public sector injection of capital, or equivalent support, without which the Bank
would have become non-viable, as determined by the MAS. The Bank will, in consultation with or as directed by MAS, determine
the amount to be written off in order for the non-viability event to cease to continue. In addition to the first call in 2020, the Capital
Securities may also be redeemed if a qualifying tax event or a change of qualification event occurs.
The Capital Securities bear a fixed distribution rate of 3.80% per annum from the issue date to the First Reset Date and will be reset
every 5 years thereafter to a fixed rate equal to the then-prevailing 5-year SGD Swap Offer Rate plus 1.51%. The non-cumulative
distributions may only be paid out of distributable reserves semi-annually in February and August, unless cancelled by the Bank at its
option. The Capital Securities constitute unsecured and subordinated obligations, ranking senior only to shareholders of the Bank.
14. CAPITAL RESERVES

GROUP BANK
2017 2016 2017 2016
$’000 $’000 $’000 $’000
At 1 January 571,850 526,910 105,678 94,749
Share-based staff costs capitalised 14,807 15,020 14,807 15,020
Shares transferred to DSP Trust (58,745) (70,401) – –
Shares vested under DSP Scheme 48,865 42,736 – –
Transfer (to)/from unappropriated profit (Note 12) (193,643) 61,676 – –
Transfer to share capital (Note 13.1) (21,691) (4,091) (21,691) (4,091)
At 31 December 361,443 571,850 98,794 105,678
Capital reserves include statutory reserves set aside by the Group’s banking and stockbroking entities in accordance with the respective
laws and regulations. Capital reserves also include the Bank’s employee share schemes’ reserves and deferred shares held by DSP Trust.

15. REVENUE RESERVES

GROUP BANK
2017 2016 2017 2016
$’000 $’000 $’000 $’000
Unappropriated profit (Note 12) 23,017,298 20,259,830 11,856,185 11,330,145
General reserves 1,340,812 1,331,175 1,383,127 1,381,210
Cash flow hedge reserves (76) – – –
Currency translation reserves (1,465,927) (917,576) (222,337) (149,145)
At 31 December 22,892,107 20,673,429 13,016,975 12,562,210
15.1 GENERAL RESERVES

At 1 January 1,331,175 1,328,862 1,381,210 1,114,562
Arising from merger of subsidiaries – – – 264,335
Transactions with non-controlling interests 173 – – –
DSP reserve from dividends on unvested shares 5,894 5,630 5,894 5,630
Transfer from/(to) unappropriated profits (Note 12) 3,570 (3,317) (3,977) (3,317)
At 31 December 1,340,812 1,331,175 1,383,127 1,381,210
The general reserves have not been earmarked for any specific purpose, and include merger reserves arising from common control
transactions, as well as dividends on unvested shares under the DSP.
15.2 CASH FLOW HEDGE RESERVES

The cash flow hedge reserves comprise the effective portion of the cumulative net change in the fair value of hedging instruments
used in cash flow hedges pending subsequent recognition of the hedged cash flow. The cash flow hedges principally consist of interest
rate contracts that are used to hedge against the variability in cash flows of certain floating rate liabilities.
15.3 CURRENCY TRANSLATION RESERVES

GROUP BANK
2017 2016 2017 2016
$’000 $’000 $’000 $’000
At 1 January (917,576) (997,822) (149,145) (161,658)
Movements for the year (1,015,091) 138,361 (74,419) 5,639
Effective portion of hedge 466,740 (58,115) 1,227 6,874
At 31 December (1,465,927) (917,576) (222,337) (149,145)
Currency translation reserves comprise exchange differences arising from the translation of the net assets of foreign operations and
the effective portion of the hedge on exposure in foreign operations.
Refer to Note 39.3 Currency risk – Structural foreign exchange risk for management of structural foreign exchange risk.
16. NON-CONTROLLING INTERESTS

GROUP
2017 2016
Note $’000 $’000
Non-controlling interests in subsidiaries 1,267,728 1,134,940
Preference shares issued by a subsidiary
OCBC Capital Corporation (2008) (a) 1,500,000 1,500,000
Total non-controlling interests 2,767,728 2,634,940
(a) OCBC Capital Corporation (2008) (“OCC2008”), a wholly-owned subsidiary of the Bank, issued the $1.5 billion non-cumulative non-
convertible guaranteed preference shares on 27 August 2008. The proceeds are on-lent to the Bank in exchange for a note issued by the
Bank [Note 21.1(e)], which guarantees on a subordinated basis, all payment obligations in respect of the preference shares. The preference
shares are redeemable in whole at the option of OCC2008 on 20 September 2018 and each dividend payment date thereafter. Dividends,
which are subject to declaration by the Board of Directors of OCC2008, are payable semi-annually on 20 March and 20 September each
year at 5.10% per annum up to 20 September 2018, and thereafter quarterly on 20 March, 20 June, 20 September and 20 December each
year at a floating rate per annum equal to the 3-month Singapore Swap Offer Rate plus 2.50% if the redemption option is not exercised.
The preference shares qualify as Additional Tier 1 capital for the Group.

17. DEPOSITS AND BALANCES OF NON-BANK CUSTOMERS AND BANKS
GROUP BANK
2017 2016 2017 2016
$’000 $’000 $’000 $’000
Deposits of non-bank customers
Current accounts 87,773,491 85,411,477 45,188,341 42,592,314
Savings deposits 51,816,611 48,240,409 42,315,882 38,529,930
Term deposits 113,161,109 108,300,554 64,125,473 59,999,444
Structured deposits 4,916,531 5,642,079 1,825,832 1,851,605
Certificate of deposits issued 21,629,624 11,978,038 21,331,861 11,727,423
Other deposits 4,344,803 1,913,305 3,358,699 1,052,221
283,642,169 261,485,862 178,146,088 155,752,937
Deposits and balances of banks 7,485,428 10,739,590 6,084,643 9,090,295
291,127,597 272,225,452 184,230,731 164,843,232
17.1 DEPOSITS OF NON-BANK CUSTOMERS

Analysed by currency
Singapore Dollar 97,664,767 94,413,009 93,950,520 90,982,762
US Dollar 93,414,634 80,402,221 63,884,965 46,760,330
Malaysian Ringgit 22,364,431 21,701,024 – –
Indonesian Rupiah 8,205,921 7,563,135 – –
Japanese Yen 1,438,805 1,652,975 475,391 648,213
Hong Kong Dollar 28,639,968 27,335,933 4,984,726 6,211,565
British Pound 7,051,170 5,329,760 5,440,687 3,358,238
Australian Dollar 10,904,050 8,547,670 5,982,504 4,835,998
Euro 1,856,613 2,421,464 579,564 508,916
Chinese Renminbi 7,551,231 8,007,948 1,460,985 1,457,006
Others 4,550,579 4,110,723 1,386,746 989,909
283,642,169 261,485,862 178,146,088 155,752,937
17.2 DEPOSITS AND BALANCES OF BANKS

Analysed by currency
Singapore Dollar 798,162 716,261 779,612 711,711
US Dollar 4,635,342 5,457,242 3,988,251 5,190,637
Malaysian Ringgit 241,795 533,480 – 11,777
Indonesian Rupiah 140,856 417,254 – –
Japanese Yen 36,068 72,392 35,710 38,391
Hong Kong Dollar 594,512 921,467 579,209 904,521
British Pound 9,332 74,562 4,819 72,127
Australian Dollar 326,340 1,216,825 321,174 1,209,203
Euro 210,623 286,962 187,063 286,809
Chinese Renminbi 303,786 497,983 1,464 135,923
Others 188,612 545,162 187,341 529,196
7,485,428 10,739,590 6,084,643 9,090,295

18. DERIVATIVE FINANCIAL INSTRUMENTS

The derivative financial instruments shown in the following tables are held for both trading and hedging purposes. The contractual or
underlying principal amounts of these derivative financial instruments and their corresponding gross positive (derivative receivables)
and negative (derivative payables) fair values at the balance sheet date are analysed below.
2017 2016
Principal Principal
notional Derivative Derivative notional Derivative Derivative
GROUP ($’000) amount receivables payables amount receivables payables
Foreign exchange derivatives (“FED”)
Forwards 79,449,518 648,921 730,196 52,598,526 729,665 682,034
Swaps 267,670,709 3,039,822 3,088,205 209,187,749 4,297,135 4,011,655
OTC options – bought 34,516,862 284,783 35,497 20,533,064 397,285 37,411
OTC options – sold 32,013,241 16,529 236,420 19,678,202 15,896 390,313
413,650,330 3,990,055 4,090,318 301,997,541 5,439,981 5,121,413
Interest rate derivatives (“IRD”)
Swaps 480,380,675 2,226,065 2,179,153 358,496,972 2,206,171 2,150,051
OTC options – bought 873,028 2,363 – 294,736 3,171 –
OTC options – sold 2,186,709 – 18,966 2,206,866 – 26,565
Exchange traded futures – bought 1,643,308 224 82 167,070 161 –
Exchange traded futures – sold 3,431,656 661 52 1,673,453 1 667
488,515,376 2,229,313 2,198,253 362,839,097 2,209,504 2,177,283
Equity derivatives
Forwards – – – 14,552 – –
Swaps 1,061,144 29,012 28,959 725,969 19,201 19,237
OTC options – sold 1,576,791 15,906 41,243 1,143,734 19,789 16,779
Exchange traded options – bought 184 184 – – – –
Exchange traded futures – bought 148,188 998 – – – –
Exchange traded futures – sold 263,093 22 1,219 144,897 5 926
Others 3,073 24 24 7,886 240 6
4,711,603 88,169 85,211 3,353,245 61,078 51,354
Credit derivatives
Swaps – protection buyer 5,474,651 5,562 62,540 7,977,048 13,986 82,354
Swaps – protection seller 4,449,184 61,746 5,512 7,184,602 82,578 11,017
9,923,835 67,308 68,052 15,161,650 96,564 93,371
Other derivatives
Precious metals – bought 179,679 3,321 990 169,906 419 9,858
Precious metals – sold 201,809 1,066 4,048 199,177 9,946 762
OTC options – bought 999,014 5,422 492 600,653 16,658 111
OTC options – sold 993,807 492 5,369 600,653 111 16,658
Futures – sold 8,429 80 – – – –
Commodity swaps 39,732 715 1,242 39,503 3,348 3,348
2,422,470 11,096 12,141 1,609,892 30,482 30,737
Total 919,223,614 6,385,941 6,453,975 684,961,425 7,837,609 7,474,158
Included items designated for hedges:

Fair value hedge – FED – – – 630,616 286 168,403
Fair value hedge – IRD 5,815,051 43,613 14,989 6,550,441 75,952 22,700
Hedge of net investments – FED 3,170,036 100,564 22,673 5,222,963 102,874 41,756
8,985,087 144,177 37,662 12,404,020 179,112 232,859

18. DERIVATIVE FINANCIAL INSTRUMENTS (continued)
2017 2016
Principal Principal
notional Derivative Derivative notional Derivative Derivative
BANK ($’000) amount receivables payables amount receivables payables
Foreign exchange derivatives (“FED”)
Forwards 26,867,182 197,307 229,522 24,546,486 362,551 246,760
Swaps 241,666,109 2,533,571 2,415,762 191,406,789 3,594,828 3,411,089
OTC options – sold 9,775,087 10,034 108,861 8,014,687 12,175 186,497
290,298,895 2,876,687 2,783,155 232,813,291 4,173,873 3,879,931
Interest rate derivatives (“IRD”)
Swaps 445,480,040 2,143,771 2,094,828 328,204,318 2,052,646 1,988,019
OTC options – bought 846,786 2,156 – 129,555 449 –
OTC options – sold 2,140,002 – 17,993 2,038,452 – 24,137
Exchange traded futures – bought 1,643,308 224 82 167,070 161 –
Exchange traded futures – sold 2,892,394 618 42 1,592,462 1 549
453,002,530 2,146,769 2,112,945 332,131,857 2,053,257 2,012,705
Equity derivatives
Swaps 1,017,073 26,610 26,545 663,614 18,392 18,403
OTC options – bought 134,137 1,046 227 196,857 2,023 1,964
OTC options – sold 87,979 2,686 713 109,641 7,504 889
Exchange traded futures – bought 148,188 998 – – – –
Exchange traded futures – sold 263,093 22 1,219 144,897 5 926
Others 3,073 24 24 7,886 240 6
1,653,543 31,386 28,728 1,122,895 28,164 22,188
Credit derivatives
Swaps – protection buyer 5,398,439 543 62,529 7,815,162 10,961 82,089
Swaps – protection seller 4,376,951 61,736 494 7,043,269 82,309 7,998
9,775,390 62,279 63,023 14,858,431 93,270 90,087
Other derivatives
Precious metals – sold 21,735 – 784 19,430 – 365
Commodity swaps – – – 6,241 3,024 3,024
21,735 – 784 25,671 3,024 3,389
Total 754,752,093 5,117,121 4,988,635 580,952,145 6,351,588 6,008,300
Included items designated for hedges:

Fair value hedge – FED 1,597,531 94,826 – 630,616 286 168,403
Fair value hedge – IRD 4,345,405 39,366 14,168 6,095,022 72,668 20,511
Hedge of net investments – FED 1,268,975 5,738 8,914 2,229,795 27,150 21,100
7,211,911 139,930 23,082 8,955,433 100,104 210,014

18. DERIVATIVE FINANCIAL INSTRUMENTS (continued)

GROUP BANK
2017 2016 2017 2016
$’000 $’000 $’000 $’000
Derivative receivables:
Analysed by counterparty
Banks 3,016,960 4,418,164 2,396,441 3,572,088
Other financial institutions 2,234,155 2,177,105 1,829,856 1,817,397
Corporates 862,664 973,702 779,829 843,016
Individuals 213,063 192,053 51,898 42,503
Others 59,099 76,585 59,097 76,584
6,385,941 7,837,609 5,117,121 6,351,588
Analysed by geography
Singapore 988,051 1,249,303 1,067,329 1,260,435
Malaysia 267,057 650,164 35,432 47,286
Indonesia 61,916 61,156 31,714 22,909
Greater China 996,997 1,069,211 471,177 695,957
Other Asia Pacific 363,693 652,009 316,683 612,641
Rest of the World 3,708,227 4,155,766 3,194,786 3,712,360
6,385,941 7,837,609 5,117,121 6,351,588
The analysis by geography is determined based on where the credit risk resides.
19. OTHER LIABILITIES

GROUP BANK
2017 2016 2017 2016
$’000 $’000 $’000 $’000
Bills payable 437,445 386,578 329,200 273,822
Interest payable 776,602 879,291 458,700 514,514
Sundry creditors 3,750,056 3,228,203 591,947 510,251
Others 1,100,306 1,096,557 475,623 448,433
6,064,409 5,590,629 1,855,470 1,747,020
At 31 December 2017, reinsurance liabilities and third-party interests in consolidated investment funds included in “Others” amounted
to $33.3 million (2016: $38.8 million) and $35.1 million (2016: $54.6 million) respectively for the Group.
20. DEFERRED TAX

GROUP BANK
2017 2016 2017 2016
$’000 $’000 $’000 $’000
At 1 January 1,128,519 1,191,984 (13,169) 11,105
Acquisitions 11,097 – – –
Currency translation (2,248) (2,983) 2,954 (2,728)
Net charge/(credit) to income statements (Note 10) (54,911) (44,168) (116) (19,903)
Under /(over) provision in prior years 4,468 (536) 1,412 1,699
Net charge/(credit) to equity 13,411 (5,531) (1,543) (3,342)
Net change in life assurance fund tax 307,913 (10,247) – –
At 31 December 1,408,249 1,128,519 (10,462) (13,169)

20. DEFERRED TAX (continued)
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against
current tax liabilities and when the deferred income taxes relate to the same fiscal authority.
The deferred tax assets and liabilities are to be recovered and settled after one year and the following amounts, determined after
appropriate offsetting, are shown in the balance sheets:
GROUP BANK
2017 2016 2017 2016
$’000 $’000 $’000 $’000
Deferred tax liabilities
Accelerated tax depreciation 96,254 90,461 59,460 55,907
Unrealised gain on available-for-sale financial assets 320,378 176,058 1,271 3,240
Fair value of depreciable assets acquired in business combination 175,693 187,085 48,561 50,720
Provision for policy liabilities 1,011,550 833,324 – –
Others 135,539 143,965 11,333 5,634
1,739,414 1,430,893 120,625 115,501
Amount offset against deferred tax assets (157,395) (106,286) (66,461) (64,390)
1,582,019 1,324,607 54,164 51,111
Deferred tax assets

Allowances for assets (176,248) (201,041) (97,220) (97,415)
Tax losses (13,378) (13,360) (13,378) (12,459)
Others (141,539) (87,973) (20,489) (18,796)
(331,165) (302,374) (131,087) (128,670)
Amount offset against deferred tax liabilities 157,395 106,286 66,461 64,390
(173,770) (196,088) (64,626) (64,280)
Net deferred tax liabilities/(assets) 1,408,249 1,128,519 (10,462) (13,169)
Deferred income tax assets are recognised for tax losses carried forward only to the extent that realisation of the related tax benefit
through future taxable profits is probable. At 31 December 2017, unutilised tax losses carried forward for which no deferred income tax
has been recognised amounted to $53.9 million (2016: $67.7 million) for the Group, $8.4 million (2016: $12.1 million) for the Bank.
21. DEBT ISSUED

GROUP BANK
2017 2016 2017 2016
$’000 $’000 $’000 $’000
Subordinated debt (unsecured) [Note 21.1] 4,556,224 6,503,170 5,524,342 6,604,073
Fixed and floating rate notes (unsecured) [Note 21.2] 3,424,298 3,564,849 2,815,586 3,135,696
Commercial papers (unsecured) [Note 21.3] 21,380,796 8,572,419 21,285,101 8,484,813
Structured notes (unsecured) [Note 21.4] 1,289,133 1,306,941 1,289,133 1,306,941
Covered bonds (secured) [Note 21.5] 1,584,295 – 1,584,295 –
32,234,746 19,947,379 32,498,457 19,531,523

21. DEBT ISSUED (continued)

21.1 SUBORDINATED DEBT (UNSECURED)
GROUP
2017 2016
Note Issue date Maturity date $’000 $’000
Issued by the Bank:
USD500 million 3.75% notes (a) 15 Nov 2010 15 Nov 2022 – 726,533
USD1 billion 3.15% notes (b) 11 Sep 2012 11 Mar 2023 1,336,728 1,445,298
USD1 billion 4.00% notes (c) 15 Apr 2014 15 Oct 2024 1,330,147 1,451,179
USD1 billion 4.25% notes (d) 19 Jun 2014 19 Jun 2024 1,357,467 1,481,063
SGD1.5 billion 5.10% notes (e) 27 Aug 2008 20 Sep 2058 1,500,000 1,500,000
5,524,342 6,604,073
Subordinated debt issued to a subsidiary (1,500,000) (1,500,000)
Net subordinated debt issued by the Bank 4,024,342 5,104,073
Issued by OCBC Bank (Malaysia) Berhad (“OCBC Malaysia”):

MYR400 million 6.75% Innovative Tier 1 Capital Securities (f) 17 Apr 2009 Not applicable 132,182 128,985
MYR600 million 4.00% bonds (g) 15 Aug 2012 15 Aug 2022 – 193,292
132,182 322,277
Issued by OCBC Wing Hang Bank (“OCBC Wing Hang”):

USD400 million 6.00% step-up perpetual notes (h) 19 Apr 2007 Not applicable – 582,248
Issued by PT Bank OCBC NISP Tbk (“OCBC NISP”):

IDR880 billion 11.35% Subordinated Bonds III (i) 30 Jun 2010 30 Jun 2017 – 94,972
Issued by The Great Eastern Life Assurance Company Limited (“GEL”):

SGD400 million 4.60% notes (j) 19 Jan 2011 19 Jan 2026 399,700 399,600
Total subordinated debt 4,556,224 6,503,170
(a) The subordinated notes were fully redeemed by the Bank on 15 November 2017.
(b) The subordinated notes are redeemable in whole at the option of the Bank on 11 March 2018. Interest is payable semi-annually on
11 March and 11 September each year at 3.15% per annum up to 11 March 2018, and thereafter at a fixed rate per annum equal
to the then prevailing 5-year US Dollar Swap Rate plus 2.279% if the redemption option is not exercised. The subordinated notes
qualify as Tier 2 capital for the Group.
(c) The subordinated notes are redeemable in whole at the option of the Bank on 15 October 2019. They can be written off in whole
or in part if the MAS determines that the Bank would become non-viable. Interest is payable semi-annually on 15 April and 15
October each year at 4.00% per annum up to 15 October 2019, and thereafter at a fixed rate per annum equal to the then prevailing
5-year US Dollar Swap Rate plus 2.203% if the redemption option is not exercised. The Bank had entered into interest rate swaps to
manage the risk of the subordinated notes and the cumulative fair value change of the risk hedged is included in the carrying value.
The subordinated notes qualify as Tier 2 capital for the Group.

21.1 SUBORDINATED DEBT (UNSECURED) (continued)
(d) The subordinated notes can be written off in whole or in part if the MAS determines that the Bank would become non-viable.
Interest is payable semi-annually on 19 June and 19 December each year at 4.25% per annum. The Bank had entered into interest
rate swaps to manage the risk of the subordinated notes and the cumulative fair value change of the risk hedged is included in the
carrying value. The subordinated notes qualify as Tier 2 capital for the Group.
(e) The subordinated note was issued by the Bank to its wholly-owned subsidiary, OCBC Capital Corporation (2008) in exchange
for the proceeds from the issue of the $1.5 billion non-cumulative non-convertible guaranteed preference shares (Note 16).
The subordinated note is redeemable at the option of the Bank on 20 September 2018 and each interest payment date thereafter.
Interest will, if payable, be made semi-annually on 20 March and 20 September each year at 5.10% per annum up to 20 September
2018, and thereafter quarterly on 20 March, 20 June, 20 September and 20 December each year at a floating rate per annum equal
to the 3-month Singapore Swap Offer Rate plus 2.50% if the redemption option is not exercised.
(f) The Innovative Tier 1 (“IT1”) Capital Securities are redeemable in whole at the option of OCBC Malaysia on 17 April 2019 and each
interest payment date thereafter. Interest is payable semi-annually on 17 April and 17 October each year at 6.75% per annum up to
17 April 2019, and thereafter at a floating rate per annum equal to the 6-month Kuala Lumpur Interbank Offer Rate plus 3.32% if
the redemption option is not exercised. In addition, the IT1 Capital Securities are to be redeemed in full with the proceeds from the
issuance of non-cumulative non-convertible preference shares on 17 April 2039. The IT1 Capital Securities qualify as Additional
Tier 1 capital for the Group.
(g) The subordinated bonds were fully redeemed by OCBC Malaysia on 15 August 2017.
(h) The perpetual notes were fully redeemed by OCBC Wing Hang on 20 April 2017.
(i) The subordinated bonds were fully redeemed by OCBC NISP on 30 June 2017.
(j) The subordinated notes are redeemable in whole at the option of GEL on 19 January 2021. Interest is payable semi-annually on
19 January and 19 July each year at 4.60% per annum up to 19 January 2021, and thereafter at a fixed rate per annum equal to the
then prevailing 5-year Singapore Swap Offer Rate plus 1.35% if the redemption option is not exercised.


21.2 FIXED AND FLOATING RATE NOTES (UNSECURED)
GROUP
2017 2016
Note Issue date Maturity date $’000 $’000
Issued by the Bank:
AUD500 million floating rate notes (a) 24 Mar 2014 24 Mar 2017
– 17 Apr 2014 – 523,125
AUD300 million floating rate notes (b) 6 Mar 2015 6 Jun 2019 312,344 313,676
AUD500 million floating rate notes (c) 12 Nov 2015 12 Nov 2018
– 2 Dec 2015 520,672 522,918
AUD300 million floating rate notes (d) 17 Mar 2016 17 Mar 2020 312,476 313,701
AUD500 million floating rate notes (e) 22 Feb 2017 22 Feb 2018 520,785 –
AUD150 million floating rate notes (f) 22 Jun 2017 10 Dec 2018 156,238 –
AUD500 million floating rate notes (g) 6 Oct 2017 6 Oct 2020
– 6 Nov 2017 520,400 –
AUD125 million floating rate notes (h) 30 Nov 2017 30 Nov 2018 130,187 –
CNY500 million 3.50% fixed rate notes (i) 5 Feb 2013 5 Feb 2020 102,563 103,987
CNY200 million 2.70% fixed rate notes (a) 5 Jun 2014 5 Jun 2017 – 41,594
GBP250 million floating rate notes (a) 15 May 2014 15 May 2017 – 444,570
HKD1 billion 2.20% fixed rate notes (a) 19 Jan 2012 19 Jan 2017 – 186,473
HKD1.35 billion 1.67% fixed rate notes (a) 24 Sep 2014 15 Sep 2017 – 251,802
HKD1.403 billion 1.59% fixed rate notes (j) 25 Sep 2017 25 Sep 2020 239,921 –
USD200 million floating rate notes (a) 2 May 2014 2 May 2017 – 289,248
USD100 million 1.52% fixed rate notes (a) 11 Dec 2014 11 Dec 2017 – 144,602
2,815,586 3,135,696
Issued by OCBC NISP:

IDR670 billion 9.40% fixed rate bonds (a) 10 Feb 2015 10 Feb 2017 – 72,347
IDR1,235 billion 9.80% fixed rate bonds (k) 10 Feb 2015 10 Feb 2018 122,250 133,224
IDR837 billion 7.50% fixed rate bonds (a) 11 May 2016 21 May 2017 – 90,268
IDR380 billion 8.00% fixed rate bonds (k) 11 May 2016 11 May 2018 37,594 40,936
IDR783 billion 8.25% fixed rate bonds (k) 11 May 2016 11 May 2019 77,380 84,316
IDR1,248 billion 6.75% fixed rate bonds (k) 22 Aug 2017 2 Sep 2018 123,332 –
IDR300 billion 7.30% fixed rate bonds (k) 22 Aug 2017 22 Aug 2019 29,633 –
IDR454 billion 7.70% fixed rate bonds (k) 22 Aug 2017 22 Aug 2020 44,838 –
IDR975 billion 6.15% fixed rate bonds (k) 12 Dec 2017 22 Dec 2018 96,276 –
608,712 421,091
Issued by Pac Lease Berhad:

MYR10 million 4.50% fixed rate notes (a) 7 Oct 2015 7 Apr 2017 – 3,225
MYR15 million 4.60% fixed rate notes (a) 7 Oct 2015 7 Apr 2017 – 4,837
– 8,062
Total fixed and floating rate notes 3,424,298 3,564,849
(a) The notes and bonds were fully redeemed on their respective maturity dates.
(b) Interest is payable quarterly at the 3-month Bank Bill Swap reference rate plus 0.81% per annum.
(c) Interest is payable quarterly at the 3-month Bank Bill Swap reference rate plus 0.86% per annum.

21.2 FIXED AND FLOATING RATE NOTES (UNSECURED) (continued)
(d) Interest is payable quarterly at the 3-month Bank Bill Swap reference rate plus 1.20% per annum.
(e) Interest is payable quarterly at the 3-month Bank Bill Swap reference rate plus 0.49% per annum.
(f) Interest is payable quarterly at the 3-month Bank Bill Swap reference rate plus 0.45% per annum.
(g) Interest is payable quarterly at the 3-month Bank Bill Swap reference rate plus 0.60% per annum.
(h) Interest is payable quarterly at the 3-month Bank Bill Swap reference rate plus 0.26% per annum.
(i) Interest is payable semi-annually.
(j) Interest is payable annually.
(k) Interest is payable quarterly.
21.3 COMMERCIAL PAPERS (UNSECURED)

GROUP
2017 2016
Note $’000 $’000
Issued by the Bank (a) 21,285,101 8,484,813
Issued by Pac Lease Berhad (b) 95,695 87,606
21,380,796 8,572,419
(a) The commercial papers were issued by the Bank under its USD10 billion ECP programme and USD15 billion USCP programme. The
notes outstanding at 31 December 2017 were issued between 8 March 2017 (2016: 7 July 2016) and 22 December 2017 (2016:
23 December 2016), and mature between 4 January 2018 (2016: 3 January 2017) and 4 October 2018 (2016: 15 November 2017),
yielding between 0.23% and 1.60% (2016: 0.38% and 1.10%).
(b) The commercial papers were issued by the Group’s subsidiary under its MYR500 million 7-year CP/MTN programme expiring in
2018. The notes outstanding as at 31 December 2017 were issued between 9 November 2017 (2016: 10 November 2016) and
22 December 2017 (2016: 28 December 2016), and mature between 4 January 2018 (2016: 5 January 2017) and 22 January 2018
(2016: 27 January 2017), with interest rate ranging from 3.87% to 4.05% (2016: 3.72% to 4.05%).
21.4 STRUCTURED NOTES (UNSECURED)

GROUP
2017 2016
Issue date Maturity date $’000 $’000
Issued by the Bank:
Credit linked notes 20 Apr 2012 – 28 Dec 2017 31 Jan 2018 – 8 Sep 2025 980,518 1,008,967
Fixed rate notes 9 Oct 2012 – 27 Dec 2012 9 Oct 2037 – 28 Dec 2037 106,929 122,909
Bond linked notes 28 Jul 2016 – 3 Nov 2017 29 Nov 2018 – 26 Feb 2025 194,911 161,184
Equity linked notes 5 Apr 2017 – 18 Dec 2017 5 Jan 2018 – 10 Apr 2018 3,539 7,599
Fund linked notes 6 Jun 2017 6 Jun 2018 3,236 6,282
1,289,133 1,306,941
The structured notes were issued by the Bank under its Structured Note and Global Medium Term Notes Programmes and are carried at
amortised cost, except for $749.1 million (2016: $706.2 million) included under credit linked notes and $194.9 million (2016: $161.2 million)
included under bond linked notes as at 31 December 2017 which were held at fair value through profit or loss.


21.4 STRUCTURED NOTES (UNSECURED) (continued)
In accordance with FRS 39 Financial Instruments: Recognition and Measurement, to the extent that the underlying economic
characteristics and risks of the embedded derivatives were not closely related to the economic characteristics and risks of the host
contract, and where such embedded derivatives would meet the definition of a derivative, the Group bifurcated such embedded
derivatives and recognised these separately from the host contracts. The bifurcated embedded derivatives were fair valued through
profit or loss, and were included as part of the Group’s derivatives in the financial statements. This accounting treatment is also
in line with the Group’s accounting policy for derivatives (Note 2.7).
21.5 COVERED BONDS (SECURED)

GROUP
2017 2016
Issue date Maturity date $’000 $’000
Issued by the Bank:
EUR1 billion 0.25% fixed rate covered bonds 21 Mar 2017 – 5 Oct 2017 21 Mar 2022 – 5 Oct 2022 1,584,295 –
The covered bonds were issued by the Bank under its USD10 billion Global Covered Bond Programme. The Covered Bond Guarantor,
Red Sail Pte. Ltd., guarantees the payments of interest and principal. The guarantee is secured by a portfolio of Singapore home loans
transferred from OCBC Bank to Red Sail Pte. Ltd. (Note 46.2). Interest is payable annually in arrears.
21.6 RECONCILIATION OF MOVEMENTS OF LIABILITIES TO CASH FLOW ARISING FROM FINANCING ACTIVITIES
Non-cash changes
Foreign
exchange
GROUP ($’000) 1 January 2017 Cash flows movements Others 31 December 2017
Subordinated debt 6,503,170 (1,521,099) (396,401) (29,446) 4,556,224
Fixed and floating rate notes 3,564,849 (62,296) (77,930) (325) 3,424,298
Commercial papers 8,572,419 13,706,523 (959,433) 61,287 21,380,796
Structured notes 1,306,941 58,162 (102,808) 26,838 1,289,133
Covered bonds – 1,540,594 (53,473) 97,174 1,584,295
19,947,379 13,721,884 (1,590,045) 155,528 32,234,746

22. LIFE ASSURANCE FUND LIABILITIES AND INVESTMENT ASSETS
GROUP
2017 2016
$ million $ million
Life assurance fund liabilities
Movements in life assurance fund
At 1 January 54,881.1 50,478.1
Currency translation 498.3 (427.2)
Fair value reserve movements 1,656.8 176.6
Disposal of subsidiary – (3.5)
Change in life assurance fund contract liabilities (Note 4) 8,107.7 4,657.1
At 31 December 65,143.9 54,881.1
Policy benefits 3,742.8 3,319.5
Others 4,868.5 3,760.6
73,755.2 61,961.2
Life assurance fund investment assets

Deposits with banks and financial institutions 3,350.1 2,097.4
Loans 3,601.2 3,750.1
Securities 63,847.3 53,124.6
Investment property 1,553.0 1,539.0
Others (1) 1,575.8 1,461.2
73,927.4 61,972.3
Life assurance fund balances included under the following balance sheet items:
Liabilities
Current tax 286.8 268.7
Deferred tax 1,310.8 1,002.9
Assets
Cash and placements with central banks # #
Placements with and loans to banks 848.1 669.8
Property, plant and equipment 577.3 590.6
The following contracts were entered into under the life assurance fund:
Operating lease commitments 13.6 14.6
Capital commitment authorised and contracted 195.2 225.0
Derivative financial instruments (principal notional amount) 15,717.4 12,478.1
Derivative receivables 237.8 78.4
Derivative payables 366.0 732.9
Minimum lease rental receivables under non-cancellable operating leases 67.8 73.1
(1)
Others mainly comprise interest receivable, deposits collected, prepayments, investment debtors and sundry debtors.
(2)
# represents amounts less than $0.5 million.

23. CASH AND PLACEMENTS WITH CENTRAL BANKS

GROUP BANK
2017 2016 2017 2016
$’000 $’000 $’000 $’000
Cash on hand 821,384 801,419 501,602 486,374
Non-restricted balances with central banks 576,462 585,324 441,851 207,285
Money market placements and reverse repos with central banks 12,436,751 9,789,786 10,038,033 7,715,204
Cash and cash equivalents 13,834,597 11,176,529 10,981,486 8,408,863
Restricted balances with central banks – mandatory reserve deposits 5,759,826 5,382,934 3,373,159 2,955,886
Total 19,594,423 16,559,463 14,354,645 11,364,749
24. GOVERNMENT TREASURY BILLS AND SECURITIES

GROUP BANK
2017 2016 2017 2016
$’000 $’000 $’000 $’000
Singapore government treasury bills and securities
Trading, at fair value 938,081 590,222 938,081 590,222
Available-for-sale, at fair value 8,901,900 7,475,673 8,694,150 7,112,024
Gross securities 9,839,981 8,065,895 9,632,231 7,702,246
Assets pledged (Note 46.1) – – (543,483) –
9,839,981 8,065,895 9,088,748 7,702,246
Other government treasury bills and securities

Trading, at fair value 3,327,086 2,181,384 2,744,271 1,756,567
Available-for-sale, at fair value 14,278,113 14,119,458 5,705,569 5,410,371
Fair value at initial recognition 31,580 – – –
Gross securities 17,636,779 16,300,842 8,449,840 7,166,938
Assets pledged (Note 46.1) (5,878) (2,302) (5,878) (2,302)
17,630,901 16,298,540 8,443,962 7,164,636
Gross securities analysed by geography

Singapore 9,839,981 8,065,895 9,632,231 7,702,246
Malaysia 2,750,856 2,397,211 45,366 59,940
Indonesia 2,805,815 2,731,696 502,942 81,144
Greater China 4,048,649 1,679,728 2,287,278 95,387
Other Asia Pacific 5,297,243 5,945,051 5,018,966 5,802,527
Rest of the World 2,734,216 3,547,156 595,288 1,127,940
27,476,760 24,366,737 18,082,071 14,869,184

25. PLACEMENTS WITH AND LOANS TO BANKS
GROUP BANK
2017 2016 2017 2016
$’000 $’000 $’000 $’000
At fair value:
Certificate of deposits purchased (Trading) 2,457,213 1,857,555 2,163,130 1,828,692
Certificate of deposits purchased (Available-for-sale) 17,746,878 14,697,957 9,518,198 11,655,224
20,204,091 16,555,512 11,681,328 13,483,916
At amortised cost:
Placements with and loans to banks 24,931,687 19,606,693 20,434,143 14,792,402
Market bills purchased 1,497,942 1,480,917 1,497,942 1,480,917
Reverse repos 2,090,636 2,015,010 1,334,420 1,979,813
28,520,265 23,102,620 23,266,505 18,253,132
Balances with banks 48,724,356 39,658,132 34,947,833 31,737,048

Assets pledged (Note 46.1) (195,160) (527,285) (191,991) (527,285)
Bank balances of life assurance fund – at amortised cost 848,159 669,837 – –
49,377,355 39,800,684 34,755,842 31,209,763
Balances with banks analysed:

By currency
Singapore Dollar 960,653 597,019 2,126 28,215
US Dollar 34,166,592 27,739,829 28,993,290 24,689,205
Malaysian Ringgit 813,395 698,226 30 24
Indonesian Rupiah 308,075 386,358 2 2
Japanese Yen 481,449 1,079,983 353,771 966,981
Hong Kong Dollar 1,097,732 2,301,428 341,111 1,333,080
British Pound 1,307,231 663,549 1,302,634 605,567
Australian Dollar 946,091 753,580 944,440 667,007
Euro 969,799 2,879,577 930,573 2,847,888
Chinese Renminbi 6,277,812 2,252,261 848,278 499,721
Others 1,395,527 306,322 1,231,578 99,358
48,724,356 39,658,132 34,947,833 31,737,048
By geography
Singapore 1,390,164 588,812 559,222 78,971
Malaysia 4,593,798 4,721,810 3,624,636 3,339,974
Indonesia 819,201 1,035,997 501,300 640,923
Greater China 34,472,297 25,422,982 24,665,874 21,598,849
Rest of the World 3,674,873 3,778,028 2,023,492 2,291,018
48,724,356 39,658,132 34,947,833 31,737,048

26. LOANS AND BILLS RECEIVABLE

GROUP BANK
2017 2016 2017 2016
$’000 $’000 $’000 $’000
Gross loans 237,321,180 220,152,185 145,244,428 133,597,822
Specific allowances (Note 28) (1,236,441) (616,478) (946,892) (321,315)
Portfolio allowances (Note 29) (1,416,867) (2,240,779) (781,049) (1,402,752)
Net loans 234,667,872 217,294,928 143,516,487 131,873,755
Assets pledged (Note 46.1) (526,414) (464,746) – –
234,141,458 216,830,182 143,516,487 131,873,755
Bills receivable 7,797,729 6,529,439 6,004,147 5,318,748

Loans 226,870,143 210,765,489 137,512,340 126,555,007
Net loans 234,667,872 217,294,928 143,516,487 131,873,755
26.1 ANALYSED BY CURRENCY

Singapore Dollar 85,485,399 81,260,631 82,005,799 78,677,536
US Dollar 61,444,632 56,575,722 39,953,861 35,710,995
Malaysian Ringgit 20,481,329 20,551,673 90 100
Indonesian Rupiah 7,795,329 7,485,729 – –
Japanese Yen 1,963,087 2,232,922 255,615 376,979
Hong Kong Dollar 33,010,680 30,339,172 8,156,189 7,135,843
British Pound 6,988,482 5,440,417 4,391,218 3,749,379
Australian Dollar 7,548,011 5,642,387 6,304,308 5,088,370
Euro 5,292,929 2,681,588 2,254,980 1,025,966
Chinese Renminbi 4,625,667 5,182,259 686,963 872,513
Others 2,685,635 2,759,685 1,235,405 960,141
237,321,180 220,152,185 145,244,428 133,597,822
26.2 ANALYSED BY PRODUCT

Overdrafts 4,875,295 5,016,070 771,498 843,107
Short-term and revolving loans 57,786,503 49,521,159 22,763,064 18,635,251
Syndicated and term loans 73,353,010 72,091,853 59,695,120 59,192,481
Housing and commercial property loans 72,310,789 68,210,416 43,648,865 39,957,227
Car, credit card and share margin loans 5,341,737 5,536,070 2,957,539 2,741,431
Others 23,653,846 19,776,617 15,408,342 12,228,325
237,321,180 220,152,185 145,244,428 133,597,822
26.3 ANALYSED BY INDUSTRY

Agriculture, mining and quarrying 8,073,040 8,973,562 5,154,957 6,319,710
Manufacturing 12,501,394 12,697,511 5,235,364 4,827,184
Building and construction 35,436,446 35,631,618 25,856,166 26,953,828
Housing 64,542,075 60,149,282 41,525,764 37,708,375
General commerce 29,009,556 25,348,258 20,954,937 17,395,643
Transport, storage and communication 11,567,639 11,519,930 8,271,973 8,272,744
Financial institutions, investment and holding companies 37,837,914 30,491,149 21,457,864 16,234,476
Professionals and individuals 28,703,675 26,395,601 10,036,423 9,726,256
Others 9,649,441 8,945,274 6,750,980 6,159,606
237,321,180 220,152,185 145,244,428 133,597,822

26. LOANS AND BILLS RECEIVABLE (continued)
GROUP BANK
2017 2016 2017 2016
$’000 $’000 $’000 $’000
26.4 ANALYSED BY INTEREST RATE SENSITIVITY
Fixed
Singapore 5,081,001 7,218,536 5,042,276 7,179,911
Malaysia 2,781,704 2,836,081 – –
Indonesia 1,052,579 1,012,718 – –
Greater China 6,445,713 6,872,022 2,819,277 2,732,339
Rest of the World 10,250 11,455 10,250 11,455
15,569,310 18,161,909 8,069,866 10,134,802
Variable
Singapore 137,028,337 123,258,775 111,291,106 100,840,725
Malaysia 25,056,008 24,652,160 4,853,990 5,041,068
Indonesia 9,532,855 9,133,817 – –
Greater China 37,464,189 34,567,028 8,358,985 7,202,731
Rest of the World 5,475,075 4,256,731 5,475,075 4,256,731
221,751,870 201,990,276 137,174,562 123,463,020
Total 237,321,180 220,152,185 145,244,428 133,597,822
The analysis by interest rate sensitivity is based on where the transactions are booked.
26.5 ANALYSED BY GEOGRAPHY

Singapore 99,872,340 93,580,113 89,992,765 85,638,078
Malaysia 28,231,427 27,948,239 4,463,021 4,525,598
Indonesia 19,259,046 18,138,012 6,881,704 6,366,067
Greater China 59,114,039 53,996,540 23,167,824 19,141,056
Rest of the World 18,090,782 14,501,236 10,649,376 8,756,884
237,321,180 220,152,185 145,244,428 133,597,822

27. NON-PERFORMING LOANS (“NPLS”), DEBT SECURITIES AND CONTINGENTS

Non-performing loans, debt securities and contingents are those classified as Substandard, Doubtful and Loss in accordance with
MAS Notice 612.
Gross loans, Net loans,

securities and Specific securities and
$ million Substandard Doubtful Loss contingents allowances contingents
GROUP
2017
Classified loans 2,324 693 398 3,415 (1,230) 2,185
Classified debt securities – 32 3 35 (13) 22
Classified contingents 15 3 – 18 (4) 14
Total classified assets 2,339 728 401 3,468 (1,247) 2,221
2016
Classified loans 1,848 548 387 2,783 (610) 2,173
Classified debt securities 35 45 # 80 (26) 54
Total classified assets 1,902 597 387 2,886 (640) 2,246
BANK
2017
Classified debt securities – 30 # 30 (8) 22
Classified contingents 15 – – 15 (4) 11
2016
Classified debt securities 35 – # 35 – 35
(1)
GROUP BANK
2017 2016 2017 2016
$ million $ million $ million $ million
27.1 ANALYSED BY PERIOD OVERDUE
Over 180 days 1,212 1,528 603 1,000
Over 90 days to 180 days 257 337 167 184
30 days to 90 days 313 248 234 160
Less than 30 days 48 323 43 301
No overdue 1,638 450 1,554 246
3,468 2,886 2,601 1,891
27.2 ANALYSED BY COLLATERAL TYPE

Property 752 802 286 305
Fixed deposit 3 3 2 3
Stock and shares 12 14 8 9
Motor vehicles 2 4 1 1
Secured – Others 1,848 1,123 1,699 1,010
Unsecured – Corporate and other guarantees 375 371 348 232
Unsecured – Clean 476 569 257 331
3,468 2,886 2,601 1,891

27. NON-PERFORMING LOANS (“NPLS”), DEBT SECURITIES AND CONTINGENTS (continued)
GROUP BANK
2017 2016 2017 2016
Agriculture, mining and quarrying 317 170 250 99
Manufacturing 307 292 167 62
Building and construction 59 94 14 31
Housing 393 406 213 185
General commerce 291 376 88 108
Transport, storage and communication 1,278 608 1,176 571
Financial institutions, investment and holding companies 412 482 388 472
Professionals and individuals 146 170 62 96
Others 265 288 243 267
3,468 2,886 2,601 1,891

Greater Rest of
$ million Singapore Malaysia Indonesia China the World Total
GROUP
2017
Substandard 772 485 399 74 609 2,339
Doubtful 212 335 29 110 42 728
Loss 148 42 161 48 2 401
1,132 862 589 232 653 3,468
Specific allowances (320) (340) (230) (61) (296) (1,247)
812 522 359 171 357 2,221
2016
Substandard 404 485 433 219 361 1,902
Doubtful 248 81 120 114 34 597
Loss 148 44 138 56 1 387
800 610 691 389 396 2,886
Specific allowances (234) (121) (173) (89) (23) (640)
566 489 518 300 373 2,246
BANK
2017
Substandard 772 125 376 34 590 1,897
Doubtful 210 254 14 42 38 558
Loss 146 – – # – 146
1,128 379 390 76 628 2,601
Specific allowances (315) (204) (113) (28) (295) (955)
813 175 277 48 333 1,646
2016
Substandard 404 123 403 63 361 1,354
Doubtful 245 – 99 17 28 389
Loss 148 – – # – 148
797 123 502 80 389 1,891
Specific allowances (233) – (61) (10) (17) (321)
564 123 441 70 372 1,570
(1)
Non-performing loans (“NPLs”), debt securities and contingents by geography are determined based on where the credit risk resides.

27. NON-PERFORMING LOANS (“NPLS”), DEBT SECURITIES AND CONTINGENTS (continued)

27.5 RESTRUCTURED/RENEGOTIATED LOANS
Non-performing restructured loans by loan classification and the related specific allowances as at reporting date is shown below.
The restructured loans as a percentage of total NPLs were 28.3% (2016: 38.2%) and 34.7% (2016: 53.4%) for the Group and the
Bank respectively.
2017 2016
Amount Allowance Amount Allowance
GROUP
Substandard 703 242 865 72
Doubtful 211 128 156 118
Loss 52 42 42 28
966 412 1,063 218
BANK
Substandard 689 235 844 57
Doubtful 197 116 136 103
Loss – – – –
886 351 980 160
28. SPECIFIC ALLOWANCES

GROUP BANK
2017 2016 2017 2016
$’000 $’000 $’000 $’000
At 1 January 616,478 359,993 321,315 110,069
Currency translation (28,653) 7,023 (20,422) 7,115
Bad debts written off (740,933) (220,981) (583,690) (97,813)
Recovery of amounts previously provided for (64,668) (54,970) (37,769) (31,486)
Allowances for loans 1,471,925 539,185 1,282,513 341,132
Net allowances charged to income statements (Note 9) 1,407,257 484,215 1,244,744 309,646
Interest recognition on impaired loans (19,519) (17,511) (15,055) (11,441)
Transfer from other assets 1,811 3,739 – 3,739
At 31 December (Note 26) 1,236,441 616,478 946,892 321,315

28. SPECIFIC ALLOWANCES (continued)
ANALYSED BY INDUSTRY
Cumulative specific Net specific allowances
allowances charged to income statements
2017 2016 2017 2016
GROUP
Housing 42 44 11 16
Transport, storage and communication 499 116 694 97
Others 133 43 112 39
1,236 616 1,407 484
BANK
Housing 5 7 – –
Transport, storage and communication 450 95 663 94
Others 114 25 123 25
947 321 1,245 310
29. PORTFOLIO ALLOWANCES

GROUP BANK
2017 2016 2017 2016
$’000 $’000 $’000 $’000
At 1 January 2,240,779 2,059,533 1,402,752 1,305,541
Currency translation (37,908) 9,780 (13,049) 924
(Write-back)/allowances charged to income statements (Note 9) (786,004) 171,466 (608,654) 96,287
At 31 December (Note 26) 1,416,867 2,240,779 781,049 1,402,752

30. DEBT AND EQUITY SECURITIES

GROUP BANK
2017 2016 2017 2016
$’000 $’000 $’000 $’000
Trading securities
Quoted debt securities 2,813,292 1,920,867 2,142,179 1,343,438
Unquoted debt securities 2,036,775 2,214,880 1,652,324 1,895,493
Quoted equity securities 321,935 229,585 321,761 229,092
Quoted investment funds 185,260 30,693 185,241 30,693
5,357,262 4,396,025 4,301,505 3,498,716
Fair value at initial recognition

Quoted debt securities 5,711 452,854 – –
Unquoted debt securities 110,299 12,467 – –
Quoted equity securities 119,350 157,404 – –
Quoted investment funds 3,770 7,245 – –
239,130 629,970 – –
Available-for-sale securities
Quoted debt securities 11,537,351 11,036,413 6,001,654 5,534,583
Unquoted debt securities 5,214,446 5,126,886 3,106,991 2,642,221
Quoted equity securities 1,962,108 1,463,868 33,509 109,215
Unquoted equity securities 625,350 275,271 462,086 94,865
Quoted investment funds 442,708 402,406 – –
Unquoted investment funds 261,878 522,698 58,604 53,459
20,043,841 18,827,542 9,662,844 8,434,343
Securities classified as loans and receivables

Unquoted debt, at amortised cost 16,891 97,714 16,891 85,480
Total debt and equity securities

Debt securities 21,734,765 20,862,081 12,920,039 11,501,215
Equity securities 3,028,743 2,126,128 817,356 433,172
Investment funds 893,616 963,042 243,845 84,152
Total securities 25,657,124 23,951,251 13,981,240 12,018,539
Assets pledged (Note 46.1) (328,087) (794,582) – (406,343)
25,329,037 23,156,669 13,981,240 11,612,196
Debt securities analysis:

By credit rating
Investment grade (AAA to BBB) 14,608,282 13,935,692 9,066,563 7,828,291
Non-investment grade (BB to C) 309,126 413,280 278,894 320,323
Non-rated 6,817,357 6,513,109 3,574,582 3,352,601
21,734,765 20,862,081 12,920,039 11,501,215
By credit quality
Pass 21,674,888 20,752,783 12,862,063 11,411,199
Special mention 34,063 60,164 34,063 60,164
Substandard – 29,852 – 29,852
Doubtful 25,408 19,282 23,913 –
Loss 406 – – –
21,734,765 20,862,081 12,920,039 11,501,215

30. DEBT AND EQUITY SECURITIES (continued)
GROUP BANK
2017 2016 2017 2016
$’000 $’000 $’000 $’000
Debt and equity securities – Concentration risks:
By industry
Agriculture, mining and quarrying 908,971 1,166,812 615,986 823,087
Manufacturing 1,844,401 1,679,849 1,181,493 1,060,296
Building and construction 2,282,357 2,616,139 922,082 1,342,426
General commerce 720,379 645,468 583,468 513,213
Transport, storage and communication 1,786,584 1,698,806 1,034,150 863,147
Others 3,504,838 2,626,951 1,983,787 1,218,074
25,657,124 23,951,251 13,981,240 12,018,539
By issuer
Public sector 2,540,934 2,429,801 1,944,343 1,972,162
Banks 7,526,217 7,153,273 4,200,092 3,505,538
Corporations 14,605,210 13,260,801 7,778,087 6,487,193
Others 984,763 1,107,376 58,718 53,646
25,657,124 23,951,251 13,981,240 12,018,539
By geography
Singapore 3,293,593 3,977,097 1,340,370 1,948,808
Malaysia 1,945,688 1,926,658 153,298 258,904
Indonesia 1,155,181 1,127,007 686,389 797,618
Greater China 11,872,018 8,633,833 6,729,815 4,074,237
Rest of the World 2,413,732 2,977,217 1,664,451 1,903,006
25,657,124 23,951,251 13,981,240 12,018,539
The analysis by geography is determined based on country of incorporation.
31. OTHER ASSETS

GROUP BANK
2017 2016 2017 2016
$’000 $’000 $’000 $’000
Interest receivable 967,454 886,456 624,417 552,620
Sundry debtors (net) 3,083,632 2,292,116 31,378 23,697
Deposits and prepayments 857,915 1,071,500 550,676 786,447
Others 741,952 639,226 265,475 228,357
5,650,953 4,889,298 1,471,946 1,591,121
At 31 December 2017, reinsurance assets included in “Others” amounted to $171.8 million (2016: $161.8 million) for the Group.

32. ALLOWANCES FOR IMPAIRMENT OF SECURITIES AND OTHER ASSETS

Government
and debt Property, plant Investment Other
GROUP ($’000) securities and equipment property assets Total
At 1 January 2016 – 63,345 2,525 15,559 81,429
Currency translation 483 (236) (4) (193) 50
Amounts written off (35,026) – – (4,526) (39,552)
Impairment charge/(write-back) to income
statements (Note 9) 34,543 1 (14) 2,178 36,708
Transfers to other accounts – – – (3,336) (3,336)
At 31 December 2016/1 January 2017 – 63,110 2,507 9,682 75,299
Currency translation – 269 (#) (300) (31)
Amounts written off – – – (2,991) (2,991)
statements (Note 9) – 7 (110) 9 (94)
Impairment charge to profit from life assurance – 264 – – 264
Transfers to other accounts – – – (1,431) (1,431)
At 31 December 2017 – 63,650 2,397 4,969 71,016
(Note 35) (Note 36)
(1)
# represents amounts less than $500.
Government
Associates and and debt Property, plant Investment Other
BANK ($’000) subsidiaries securities and equipment property assets Total
At 1 January 2016 33,787 – 820 2,525 4,178 41,310
Currency translation – 484 – – (21) 463
Amounts written off (28,517) (27,155) – – (143) (55,815)
statements (Note 9) 13,354 26,671 – (128) 219 40,116
Transfers to other accounts – – – – (3,739) (3,739)
At 31 December 2016/1 January 2017 18,624 – 820 2,397 494 22,335
Currency translation (339) – – – (8) (347)
Amounts written off (4,779) – – – (251) (5,030)
Impairment charge to income
statements (Note 9) 12,593 – – – 37,684 50,277
Transfers to other accounts – – – – (37,455) (37,455)
At 31 December 2017 26,099 – 820 2,397 464 29,780
(Notes 33-34) (Note 35) (Note 36)

33. ASSOCIATES
GROUP BANK
2017 2016 2017 2016
$’000 $’000 $’000 $’000
Quoted equity security, at cost 1,357,689 1,357,689 433,197 433,197
Unquoted equity securities, at cost 84,183 224,280 61,527 163,534
Allowance for impairment (Note 32) – – (12,032) (2,199)
Net carrying value 1,441,872 1,581,969 482,692 594,532
Share of post-acquisition reserves 766,567 812,664 – –
Amounts due from associates (unsecured) 143,185 20,835 131 –
Investments in and amounts due from associates 2,351,624 2,415,468 482,823 594,532
33.1 LIST OF PRINCIPAL ASSOCIATES

The Group applied equity method for all its investments in associates.
The Group’s principal associates are as follows:

Country of
incorporation/
Principal place Effective % interest held (3)
Name of associates of business Nature of the relationship with the Group 2017 2016
Quoted
Bank of Ningbo Co., Ltd (1) People’s Republic A commercial bank, which enables the Group 20 20
of China to expand its bilateral business in offshore
financing, trade finance and private banking.
Unquoted
AVIC Trust Co., Ltd (2) People’s Republic Provides professional financial and asset – 20
(Note 33.2) of China management services, which enable the Group
to enhance its Greater China presence.
Network for Electronic Transfers Singapore Provides electronic payment services, which 33 33
(Singapore) Pte Ltd (1) enables the Group to extend funds transfer
services to its broad customer base.
(1)
Audited by Ernst & Young.
(2)
Audited by Grant Thornton.
(3)
Rounded to the nearest percentage.
As at 31 December 2017, the fair value (Level 1 of the fair value hierarchy) of the investments in Bank of Ningbo was $3,707.2 million
(2016: $2,700.5 million), and the carrying amount of the Group’s interests was $2,070.3 million (2016: $1,892.6 million).
As Bank of Ningbo is a listed bank on the Shenzhen Stock Exchange, the entity’s ability to transfer funds to the Group is subject to local
listing and statutory regulations.
33.2 DILUTION OF INTEREST IN AN ASSOCIATE

In November 2017, AVIC Trust Co., Ltd (“AVICT”) increased its registered capital by issuing shares via a private placement. As a result, the
Group’s interest in AVICT was diluted from 20% to 17%. With the dilution of interest, AVICT is no longer an associated company of the
Group, and has been reclassified as an available-for-sale (“AFS”) equity security.

33. ASSOCIATES (continued)

33.3 FINANCIAL INFORMATION OF MATERIAL ASSOCIATES
The table below provides the financial information of the Group’s material associates:
Bank of Ningbo Co., Ltd AVIC Trust Co., Ltd
$ million 2017 2016 2017 2016
Selected income statement information
Revenue 5,157 4,862 – 496
Profit or loss from continuing operations 1,909 1,625 – 270
Other comprehensive income (575) (115) – –
Total comprehensive income 1,334 1,510 – 270
Selected balance sheet information

Current assets 149,573 111,690 – 420
Non-current assets 61,333 72,377 – 1,385
Current liabilities (172,372) (159,017) – (492)
Non-current liabilities (26,778) (14,560) – –
Net assets 11,756 10,490 – 1,313
Non-controlling interests (24) (23) – –
Preference shares/other equity instruments issued (1,381) (1,004) – –
Net assets attributable to ordinary shareholders 10,351 9,463 – 1,313
Reconciliation of associate’s total ordinary shareholders’ equity

to the carrying amount in the Group’s financial statements
Group’s interests in net assets of investee at beginning of the year 1,893 1,751 264 228
Group’s share of:
– profit from continuing operations 381 324 52 54
– other comprehensive income (149) (112) (2) (11)
– total comprehensive income 232 212 50 43
Dividends (55) (70) – (7)
Reclassify to AFS equity security (Note 33.2) – – (314) –
Carrying amount of interest in investee at end of the year 2,070 1,893 – 264
Dividends received during the year 55 70 – 34 (1)

(1)
The dividends from AVIC Trust Co., Ltd declared in financial year 2015 and 2016 were received in financial year 2016.
In addition to the interests in associates disclosed above, the Group also has interests in individually immaterial associates that are
accounted for using the equity method.
2017 2016
$ million $ million
At 31 December:
Aggregate carrying amount of individually immaterial associates 138 238
For the year ended:

Aggregate amounts of the Group’s share of:
Profit or loss from continuing operations (44) 18
Other comprehensive income 5 (12)
Total comprehensive income (39) 6

33. ASSOCIATES (continued)
The Group’s share of contingent liabilities in respect of all its associates is as follows:
2017 2016
$ million $ million
At 31 December:
Share of contingent liabilities incurred jointly with other investors of associates 4,126 3,888
34. SUBSIDIARIES
BANK
2017 2016
$’000 $’000
Investments in subsidiaries, at cost
Quoted securities (Note 34.3) 1,970,185 1,953,107
Unquoted securities 12,893,583 13,426,177
Allowance for impairment (Note 32) (14,067) (16,425)
Net carrying value 14,849,701 15,362,859
Unsecured loans and receivables 19,373,215 8,364,400

Secured loans and receivables 601,000 606,000
Amount due from subsidiaries 19,974,215 8,970,400
Investments in and amount due from subsidiaries 34,823,916 24,333,259
At 31 December 2017, the fair values (Level 1 of the fair value hierarchy) of the Group’s interests in its quoted subsidiaries,
Great Eastern Holdings Limited and PT Bank OCBC NISP Tbk, were $11,502.7 million (2016: $8,435.3 million) and $1,811.8 million
(2016: $1,792.1 million) respectively.

34. SUBSIDIARIES (continued)

34.1 LIST OF PRINCIPAL SUBSIDIARIES
Principal subsidiaries of the Group are as follows:
Proportion of ownership interests Proportion of ownership interests
and voting rights held by and voting rights held by
Country of incorporation/ the Group (%) (3) non-controlling interests (%) (3)
Name of subsidiaries Principal place of business 2017 2016 2017 2016
Banking
Banco OCBC Weng Hang, S.A. Macau SAR 100 100 – –
Bank of Singapore Limited Singapore 100 100 – –
OCBC Al-Amin Bank Berhad Malaysia 100 100 – –
OCBC Bank (Malaysia) Berhad Malaysia 100 100 – –
OCBC Wing Hang Bank (China) Limited People’s Republic of 100 100 – –
China
OCBC Wing Hang Bank Limited Hong Kong SAR 100 100 – –
PT Bank OCBC NISP Tbk (1) Indonesia 85 85 15 15
Insurance
Great Eastern General Insurance Limited (formerly Singapore 88 88 12 12
The Overseas Assurance Corporation Limited) (2)
Great Eastern General Insurance (Malaysia) Berhad Malaysia 88 88 12 12
(formerly Overseas Assurance Corporation
(Malaysia) Berhad) (2)
Great Eastern Life Assurance (Malaysia) Berhad (2) Malaysia 88 88 12 12
The Great Eastern Life Assurance Company Limited (2) Singapore 88 88 12 12
Asset management and investment holding

Lion Global Investors Limited (2) Singapore 92 91 8 9
Great Eastern Holdings Limited (2) Singapore 88 88 12 12
Stockbroking
OCBC Securities Private Limited Singapore 100 100 – –
Unless otherwise indicated, the principal subsidiaries listed above are audited by KPMG LLP Singapore and its associated firms.
(1)
Audited by PricewaterhouseCoopers.
(2)
Audited by Ernst & Young.
(3)
Rounded to the nearest percentage.
The Group’s subsidiaries do not have significant restrictions on its ability to access or use its assets and settle its liabilities other than
those resulting from their respective local statutory, regulatory, supervisory and banking requirements within which its subsidiaries
operate. These requirements require the Group’s subsidiaries to maintain minimum levels of regulatory capital, liquid assets, and
exposure limits. In addition, Great Eastern Holdings Limited and other insurance subsidiaries are subject to their respective local
insurance laws and regulations, while the Group’s banking subsidiaries are subject to prudential regulatory requirements imposed by
local regulators.

34.2 NON-CONTROLLING INTERESTS IN SUBSIDIARIES
The following table summarises the financial information, before intercompany eliminations, relating to principal subsidiaries with
material non-controlling interests (“NCI”).
PT Bank OCBC NISP Tbk Great Eastern Holdings Limited

$ million 2017 2016 2017 2016
Net assets attributable to NCI 317 291 924 816
Total comprehensive income attributable to NCI 26 41 146 74
Dividends paid to NCI during the year – – 29 32
Summarised financial information

Total assets 14,769 14,383 84,562 71,123
Total liabilities (12,647) (12,435) (76,931) (64,459)
Total net assets 2,122 1,948 7,631 6,664
Revenue 801 728 1,590 944

Profit 339 179 1,167 599
Other comprehensive income (165) 93 42 9
Total comprehensive income 174 272 1,209 608
Cash flows from/(used in) operating activities (34) 1,176 6,570 3,134
Cash flows from/(used in) investing activities 208 (1,583) (4,968) (2,434)
Cash flows from/(used in) financing activities 135 (460) (241) (260)
Effect of currency translation reserve adjustment – – 477 (404)
Net changes in cash and cash equivalents 309 (867) 1,838 36
34.3 ACQUISITION OF NON-CONTROLLING INTERESTS

During the year, the Bank acquired 685,400 shares in Great Eastern Holdings Limited (“GEH”), a subsidiary listed on the Singapore
Exchange Securities Trading Limited, at $24.90 per share for a total cash consideration of $17.1 million. Consequently, the Group’s
interest in GEH increased from 87.8% to 87.9%. The Group recognised a decrease in non-controlling interests of $9.9 million and a
corresponding $7.2 million decrease in the revenue reserves.
34.4 ACQUISITION OF PRIVATE WEALTH BUSINESS OF NATIONAL AUSTRALIA BANK

In May 2017, the Bank, together with its wholly-owned subsidiary OCBC Wing Hang Bank Limited, entered into an agreement to acquire
National Australia Bank’s (“NAB”) Private Wealth business in Singapore and Hong Kong. The business comprised a mortgage portfolio
of mainly residential mortgage loans, and a deposit portfolio of deposits of a mix of currencies.
In November 2017, the Group completed the acquisition, which added S$2.06 billion in loans and S$2.42 billion in deposits to the
OCBC franchise.
Total cash received in November 2017 based on estimated net liabilities assumed was S$0.40 billion. Final settlement was completed
in January 2018.


34.5 ACQUISITION OF WEALTH AND INVESTMENT MANAGEMENT BUSINESS OF BARCLAYS BANK PLC
In April 2016, the Bank, through its wholly-owned subsidiary, Bank of Singapore Limited (“BOS”), entered into an agreement to acquire
the Wealth and Investment Management business of Barclays Bank PLC (“Barclays WIM”) in Singapore and Hong Kong.
In November 2016, the acquisition of Barclays WIM was completed and the assets and liabilities of Barclays WIM were novated to BOS.
On the same day, BOS received cash of USD2,084 million (S$2,971 million) on Barclays WIM’s estimate of net liabilities transferred and
received cash of USD18 million (S$26 million) in 2017 for the assets acquired (comprising loans and advances to non-bank customers)
of USD2,357 million (S$3,359 million) and liabilities assumed (comprising deposits of non-bank customers) of USD4,459 million
(S$6,356 million). Total consideration paid was USD224.9 million (S$320.6 million).
Upon finalisation, the Group recorded goodwill of USD167.8 million (S$234.4 million) and intangibles of USD59.0 million
(S$82.4 million).
Full details are set out in the financial statements for the year ended 31 December 2016.
34.6 DISPOSAL OF INTERESTS IN SUBSIDIARIES

In June 2017, the Group completed the sale of its entire 100% equity interests in Banking Computer Services Private Limited (“BCS”)
and BCS Information Systems Pte Ltd (“BCSIS”) to Network for Electronic Transfers (Singapore) Pte Ltd (“NETS”) for an aggregate cash
consideration of $38.0 million. The Bank has a 33.3% shareholding interest in NETS. Accordingly, BCS and BCSIS ceased to be subsidiaries
of the Group.
The value of the identifiable assets and liabilities of BCS and BCSIS as at 6 June 2017 and the cash flow effect of the disposal comprised
the following:
$ million 2017
Identifiable assets and liabilities
Placements with banks 16.2
Other assets 40.6
Property, plant and equipment 14.2
Total assets 71.0
Other liabilities (52.0)

Carrying value of net assets 19.0
Cash consideration received 38.0

Carrying value of net assets derecognised (19.0)
Cumulative exchange differences in respect of the net assets of the subsidiaries reclassified from equity on disposal (0.4)
Gain on disposal 18.6
34.7 CONSOLIDATED STRUCTURED ENTITIES

The Bank has established a USD10 billion Global Covered Bond Programme (“the Programme”). Under the Programme, the Bank
may from time to time issue covered bonds (“the Covered Bonds”). The payments of interest and principal under the Covered Bonds
are guaranteed by the Covered Bond Guarantor, Red Sail Pte. Ltd. (“the CBG”). The Covered Bonds issued under the Programme will
predominantly be backed by a portfolio of Singapore home loans transferred from the Bank to the CBG. Integral to the Programme
structure, the Bank provides funding and hedging facilities to the CBG.

35. PROPERTY, PLANT AND EQUIPMENT
2017 2016
Property- Computer- Property- Computer-
GROUP ($’000) related related Others Total related related Others Total
Cost
At 1 January 3,306,248 1,940,594 631,844 5,878,686 3,259,086 1,758,871 610,536 5,628,493
Currency translation (137,948) (7,263) (7,284) (152,495) 25,371 5,581 (1,657) 29,295
Additions 25,887 212,295 24,062 262,244 13,748 269,032 42,413 325,193
Disposal of subsidiaries – (43,836) (10,971) (54,807) – – – –
Disposals and other transfers (8,527) (86,237) (50,955) (145,719) (4,674) (92,890) (19,423) (116,987)
Net transfer (to)/from:
Assets held for sale (3,966) – – (3,966) – – (25) (25)
Investment property (Note 36) 102,638 – – 102,638 12,717 – – 12,717
At 31 December 3,284,332 2,015,553 586,696 5,886,581 3,306,248 1,940,594 631,844 5,878,686
Accumulated depreciation
At 1 January (582,244) (1,286,249) (468,427) (2,336,920) (499,035) (1,172,944) (426,243) (2,098,222)
Currency translation 11,707 184 4,024 15,915 (1,370) (4,884) 1,554 (4,700)
Disposal of subsidiaries – 31,223 9,501 40,724 – – – –
Disposals and other transfers 1,502 84,091 55,130 140,723 (67) 91,213 15,609 106,755
Depreciation charge (69,037) (179,840) (41,452) (290,329) (66,058) (165,601) (52,544) (284,203)
Depreciation charge to profit from
life assurance (Note 4) (12,050) (48,495) (5,685) (66,230) (12,264) (34,033) (6,818) (53,115)
Net transfer to/(from):
Assets held for sale 102 – – 102 – – 15 15
Investment property (Note 36) 5,203 – – 5,203 (3,450) – – (3,450)
At 31 December (644,817) (1,399,086) (446,909) (2,490,812) (582,244) (1,286,249) (468,427) (2,336,920)
Accumulated impairment
losses (Note 32)
At 1 January (62,511) (63) (536) (63,110) (62,747) (63) (535) (63,345)
Currency translation (269) – – (269) 236 – – 236
Impairment charge to
income statements – – (7) (7) – – (1) (1)
Impairment charge to profit
from life assurance (264) – – (264) – – – –
At 31 December (63,044) (63) (543) (63,650) (62,511) (63) (536) (63,110)
Net carrying value,

at 31 December 2,576,471 616,404 139,244 3,332,119 2,661,493 654,282 162,881 3,478,656
Freehold property 436,673 479,494

Leasehold property 2,139,798 2,181,999
Net carrying value 2,576,471 2,661,493
Fair value hierarchy

Level 2 523,787 276,795
Level 3 4,337,110 4,421,314
Market value 4,860,897 4,698,109

35. PROPERTY, PLANT AND EQUIPMENT (continued)

2017 2016
Property- Computer- Property- Computer-
BANK ($’000) related related Others Total related related Others Total
Cost
At 1 January 357,002 998,545 174,768 1,530,315 262,963 902,407 172,137 1,337,507
Currency translation 8 (146) (381) (519) 11 23 (211) (177)
Additions 74 100,581 5,173 105,828 94,871 131,823 10,085 236,779
Disposals and other transfers – (6,668) (2,073) (8,741) – (35,708) (7,243) (42,951)
Net transfer to investment
property (Note 36) (18,701) – – (18,701) (843) – – (843)
At 31 December 338,383 1,092,312 177,487 1,608,182 357,002 998,545 174,768 1,530,315
At 1 January (87,693) (661,613) (131,340) (880,646) (80,836) (596,578) (123,147) (800,561)
Currency translation (5) 116 327 438 (8) (19) 207 180
Disposals and other transfers – 6,592 1,984 8,576 – 35,518 5,902 41,420
Depreciation charge (7,752) (108,768) (11,882) (128,402) (7,249) (100,534) (14,302) (122,085)
Net transfer to investment
property (Note 36) 7,035 – – 7,035 400 – – 400
At 31 December (88,415) (763,673) (140,911) (992,999) (87,693) (661,613) (131,340) (880,646)
Accumulated impairment
losses (Note 32)
At 1 January/31 December (820) – – (820) (820) – – (820)
Net carrying value,

at 31 December 249,148 328,639 36,576 614,363 268,489 336,932 43,428 648,849
Freehold property 44,436 56,265

Leasehold property 204,712 212,224
Net carrying value 249,148 268,489

Level 2 366,205 227,368
Level 3 280,119 431,325
Market value 646,324 658,693
Market values for properties under Level 2 of the fair value hierarchy are determined based on the direct market comparison method.
Such valuation is derived from price per square metre for comparable buildings market data with insignificant valuation adjustment,
if necessary.
Market values for properties under Level 3 of the fair value hierarchy are determined using a combination of direct market comparison
and investment methods. The key unobservable inputs used in these valuations are the capitalisation rates and rental yields.

36. INVESTMENT PROPERTY
GROUP BANK
2017 2016 2017 2016
$’000 $’000 $’000 $’000
Cost
At 1 January 1,302,538 1,356,228 643,098 676,183
Currency translation (5,728) (1,558) (478) 374
Additions 1,095 96,853 882 3
Disposals and other transfers (11,615) (92,947) (5,273) (32,427)
Net transfer (to)/from:
Property, plant and equipment (Note 35) (102,638) (12,717) 18,701 843
Assets held for sale (3,104) (43,321) (2,592) (1,878)
At 31 December 1,180,548 1,302,538 654,338 643,098
At 1 January (207,113) (215,842) (108,900) (112,725)
Currency translation 1,094 451 203 (155)
Disposals and other transfers 5,649 13,448 2,167 12,939
Depreciation charge (24,364) (23,916) (9,123) (9,287)
Net transfer to/(from):
Property, plant and equipment (Note 35) (5,203) 3,450 (7,035) (400)
Assets held for sale 1,252 15,296 1,002 728
At 31 December (228,685) (207,113) (121,686) (108,900)
Accumulated impairment losses (Note 32)

At 1 January (2,507) (2,525) (2,397) (2,525)
Currency translation # 4 – –
Write-back to income statements 110 14 – 128
At 31 December (2,397) (2,507) (2,397) (2,397)
Net carrying value

Freehold property 627,262 634,753 200,533 193,828
Leasehold property 322,204 458,165 329,722 337,973
At 31 December 949,466 1,092,918 530,255 531,801

Level 2 1,144,470 1,090,756 384,664 264,198
Level 3 1,847,598 2,138,084 1,061,275 1,214,956
Market value 2,992,068 3,228,840 1,445,939 1,479,154
(1)
# represents amounts less than $500.
A description of the valuation methods is provided in Note 35.

37. GOODWILL AND INTANGIBLE ASSETS

GROUP BANK
2017 2016 2017 2016
$’000 $’000 $’000 $’000
Goodwill
At 1 January 4,707,448 4,341,421 1,867,176 1,867,176
Acquisitions (Note 34.5) (72,888) 313,467 – –
Amounts written off (3,267) (858) – –
Currency translation (180,503) 53,418 – –
At 31 December 4,450,790 4,707,448 1,867,176 1,867,176
Intangible assets
At 1 January 765,398 853,810
Acquisitions (Note 34.5) 82,414 –
Amortisation charged to income statements:
– Core deposit relationships (1) (41,760) (42,197)
– Customer relationships (2) (15,433) (7,431)
– Life assurance business (3) (46,636) (46,636)
Currency translation (34,933) 7,852
At 31 December 709,050 765,398
Total goodwill and intangible assets 5,159,840 5,472,846 1,867,176 1,867,176
Analysed as follows:
Goodwill from acquisition of subsidiaries/business 4,450,790 4,707,448 1,867,176 1,867,176
Intangible assets, at cost 1,559,718 1,529,144 – –
Accumulated amortisation for intangible assets (850,668) (763,746) – –
5,159,840 5,472,846 1,867,176 1,867,176
(1)
Core deposit relationships, arising from the acquisition of OCBC Wing Hang, are determined to have an estimated useful life of 10 years. At
31 December 2017, these have a remaining useful life of 6.5 years (2016: 7.5 years).
(2)
Customer relationships, arising from the acquisition of Bank of Singapore Limited and Barclays WIM, are determined to have an estimated useful life
of 10 years. At 31 December 2017, these have a remaining useful life of up to 9 years (2016: 4 years).
(3)
The value of in-force assurance business of the Group is amortised over a useful life of 20 years. At 31 December 2017, the intangible asset has a
remaining useful life of 7 years (2016: 8 years).

37. GOODWILL AND INTANGIBLE ASSETS (continued)
Impairment tests for goodwill
For impairment testing, goodwill is allocated to the Group’s cash generating units (“CGU”) identified mainly to business segments
as follows:
Carrying value
Basis of determining 2017 2016
Cash Generating Units recoverable value $’000 $’000
Goodwill attributed to Banking CGU
Global Consumer Financial Services 844,497 844,497
Global Corporate Banking 570,000 570,000
Global Treasury 524,000 524,000
Value-in-use 1,938,497 1,938,497
Great Eastern Holdings Limited Appraisal value 427,460 427,460
Bank of Singapore Limited Value-in-use 805,396 946,741
Lion Global Investors Limited Value-in-use 29,635 29,635
OCBC Wing Hang Bank Limited Value-in-use 1,059,921 1,155,603
PT Bank OCBC NISP Tbk Value-in-use 182,580 200,373
Others Value-in-use 7,301 9,139
4,450,790 4,707,448
The value-in-use calculations apply a discounted cash flow model using cash flow projections based on financial budgets and forecasts
approved by management covering a five-year period. The cash flow projections are discounted at a pre-tax discount rate that includes
a reasonable risk premium at the date of assessment of the respective CGU. Cash flows beyond the fifth year are extrapolated using the
estimated terminal growth rates (weighted average growth rate to extrapolate cash flows beyond the projected years). The terminal
growth rate for each CGU used does not exceed management’s expectation of the long term average growth rate of the respective
industry and country in which the CGU operates. The discount rates and terminal growth rates used are tabulated below for
applicable CGUs.
OCBC Wing Hang Bank PT Bank OCBC

Banking CGU Bank of Singapore Limited Limited NISP Tbk
2017 2016 2017 2016 2017 2016 2017 2016
Discount rate 8.3% 10.8% 10.2% 10.8% 9.8% 10.8% 12.3% 12.3%
Terminal growth rate 2.0% 2.0% 2.0% 2.0% 3.0% 4.0% 4.0% 5.0%
For the insurance CGU, the Group applies the appraisal value technique for its value-in-use calculation. This technique is commonly
used to determine the economic value of an insurance business, which comprises two components: embedded value of in-force
business and existing structural value (value of future sales). The embedded value of the life assurance business is the present value
of projected distributable profits (cash flows) of the in-force business. The cash flows represent a deterministic approach based on
assumptions as to future operating experience discounted at a risk adjusted rate of 7.00% (2016: 7.25%) and 8.75% (2016: 9.0%) for
Singapore and Malaysia respectively. The assumptions take into account the recent experience of, and expected future outlook
for the life assurance business of the CGU. Investment returns assumed are based on long term strategic asset mix and their expected
future returns. The existing structural value is the value of projected distributable profits from new businesses, which is calculated
based on new businesses sold for the nine months ended up to 30 September and applying a new business multiplier to the value of
future sales.

38. SEGMENT INFORMATION

38.1 BUSINESS SEGMENTS
Global Global
Consumer/ Corporate/ Global
Private Investment Treasury and OCBC
$ million Banking Banking Markets Wing Hang Insurance Others Group
Year ended 31 December 2017
Total income 3,210 3,033 754 967 1,590 81 9,635
Operating profit before allowances

and amortisation 1,312 1,994 493 415 1,328 60 5,602
Amortisation of intangible assets (15) – – (42) (47) – (104)
(Allowances and impairment)/write-back
for loans and other assets (67) (574) (11) (3) (17) 1 (671)
Operating profit after allowances
and amortisation 1,230 1,420 482 370 1,264 61 4,827
Other information:
Capital expenditure 33 2 # 13 59 156 263
Depreciation 43 10 1 66 5 190 315
At 31 December 2017
Segment assets 106,529 126,157 83,012 55,874 85,311 15,068 471,951
Unallocated assets 937
Elimination (17,950)
Segment liabilities 117,193 111,163 55,415 48,251 75,019 21,387 428,428

Unallocated liabilities 2,684
Other information:
Gross non-bank loans 91,144 118,242 1,519 31,285 42 (4,911) 237,321
NPAs (include debt securities) 559 2,847 – 157 5 (100) 3,468
(1)

38. SEGMENT INFORMATION (continued)
38.1 BUSINESS SEGMENTS (continued)
Global Global
Consumer/ Corporate/ Global
Private Investment Treasury and OCBC
$ million Banking Banking Markets Wing Hang Insurance Others Group
Total income 2,722 3,024 708 919 944 172 8,489
Operating profit before allowances

and amortisation 1,017 1,987 444 415 726 112 4,701
Amortisation of intangible assets (7) – – (42) (47) – (96)
(Allowances and impairment)/write-back
for loans and other assets (103) (454) 1 (11) (17) (142) (726)
Operating profit after allowances
and amortisation 907 1,533 445 362 662 (30) 3,879
Other information:
Capital expenditure 44 2 # 17 54 305 422
Depreciation 43 11 2 64 3 185 308
At 31 December 2016
Segment assets 104,482 115,471 72,186 50,075 71,912 18,011 432,137
Unallocated assets 1,005
Segment liabilities 116,963 104,612 49,553 42,212 62,951 14,969 391,260

Unallocated liabilities 2,240
Other information:
Gross non-bank loans 83,802 110,111 1,384 30,389 52 (5,586) 220,152
NPAs (include debt securities) 573 2,222 – 268 10 (187) 2,886
(1)
OCBC Group’s businesses are presented in the following customer segments and business activities: Global Consumer/Private Banking,
Global Corporate/Investment Banking, Global Treasury and Markets, OCBC Wing Hang and Insurance.
Global Consumer/Private Banking

Global Consumer/Private Banking provides a full range of products and services to individual customers. At Global Consumer Banking,
the products and services offered include deposit products (checking accounts, savings and fixed deposits), consumer loans (housing
loans and other personal loans), credit cards, wealth management products (unit trusts, bancassurance products and structured
deposits) and brokerage services. Private Banking caters to the specialised banking needs of high net worth individuals, offering
wealth management expertise, including investment advice and portfolio management services, estate and trust planning, and
wealth structuring.
Global Corporate/Investment Banking

Global Corporate/Investment Banking serves institutional customers ranging from large corporates and the public sector to small and
medium enterprises. The products and services offered include long-term loans such as project financing, short-term credit such as
overdrafts and trade financing, deposit accounts and fee-based services such as cash management and custodian services. Investment
Banking offers a comprehensive range of financing solutions, syndicated loans and advisory services, corporate finance services for initial
public offerings, secondary fund-raising, takeovers and mergers, as well as customised and structured equity-linked financing.

38. SEGMENT INFORMATION (continued)

38.1 BUSINESS SEGMENTS (continued)
Global Treasury and Markets
Global Treasury and Markets is responsible for the management of the Group’s asset and liability interest rate positions, engages in
foreign exchange activities, money market operations, fixed income and derivatives trading, and offers structured treasury products
and financial solutions to meet customers’ investment and hedging needs. Income from treasury products and services offered
to customers of other business segments, such as Global Consumer/Private Banking and Global Corporate/Investment Banking, is
reflected in the respective business segments.
OCBC Wing Hang

OCBC Wing Hang offers a comprehensive range of commercial banking and related financial services such as consumer financing,
share brokerage and insurance.
Insurance
The Group’s insurance business, including its fund management activities, is undertaken by the Bank’s subsidiary Great Eastern
Holdings Limited and its subsidiaries, which provide both life and general insurance products to its customers mainly in Singapore
and Malaysia.
Others
Others comprise mainly property holding, investment holding and items not attributable to the business segments described above.
The business segment information is prepared based on internal management reports, which are used by senior management for
decision-making and performance management. The following management reporting methodologies are adopted:
(a) income and expenses are attributable to each segment based on the internal management reporting policies;
(b) in determining the segment results, balance sheet items are internally transfer priced; and
(c) transactions between business segments are recorded within the segment as if they are third party transactions and are eliminated
on consolidation.
Where there are material changes in the organisational structure and management reporting methodologies, segment information for
prior periods is restated to allow comparability. There are no material items of income or expense between the business segments.
38.2 GEOGRAPHICAL SEGMENTS

Total Profit before Capital Total Total
$ million income income tax expenditure assets liabilities
2017
Singapore 5,791 2,878 169 257,558 255,228
Malaysia 1,327 705 53 62,914 51,481
Indonesia 808 449 24 15,378 12,655
Greater China 1,326 978 15 85,758 56,721
Other Asia Pacific 162 119 1 13,399 8,276
Rest of the World 221 87 1 19,931 28,801
9,635 5,216 263 454,938 413,162
2016
Singapore 4,908 2,154 307 229,752 227,113
Malaysia 1,314 802 59 60,412 49,261
Indonesia 731 226 28 14,946 12,727
Greater China 1,250 934 24 75,563 54,720
Other Asia Pacific 141 84 1 12,007 7,056
Rest of the World 145 75 3 17,204 19,365
8,489 4,275 422 409,884 370,242
The Group’s operations are in six main geographical areas. The geographical information is prepared based on the country in which
the transactions are booked. It would not be materially different if it is based on the country in which the counterparty or assets are
located. The geographical information is stated after elimination of intra-group transactions and balances.

39. RISK MANAGEMENT
39.1 OVERVIEW
The objective of the Group’s risk management practice is to drive the business through an integrated proactive risk management
approach with strong risk analytics, while protecting the Group against losses that could arise from taking risks beyond its risk appetite.
The Group’s philosophy is that all risks must be properly understood, measured, monitored, controlled and managed. In addition, risk
management processes must be closely aligned to the Group’s business strategy, to enable the Group to maximise its risk-adjusted
return on capital.
The Group’s risk management objectives, policies and processes are detailed in the Risk Management Section.
39.2 CREDIT RISK

Maximum exposure to credit risk
The following table presents the Group’s maximum exposure to credit risk of on-balance sheet and off-balance sheet financial
instruments, without taking into account of any collateral held or other credit enhancements. For on-balance sheet assets, the
exposure to credit risk equals their carrying amount. For contingent liabilities, the maximum exposure to credit risk is the maximum
amount that the Group would have to pay if the obligations of the instruments issued are called upon. For credit commitments, the
maximum exposure to credit risk is the full amount of the undrawn credit facilities granted to customers.
Gross Average
$ million 2017 2016 2017 2016
Credit risk exposure of on-balance sheet assets:
Loans and bills receivable 234,141 216,830 224,653 206,241
Placements with and loans to banks 49,377 39,801 43,996 39,524
Government treasury bills and securities 27,471 24,364 26,976 24,482
Debt securities 21,407 20,067 21,115 20,030
Amounts due from associates 143 21 106 21
Assets pledged 1,056 1,789 1,915 1,805
Derivative receivables 6,386 7,838 6,097 6,267
Other assets, comprising interest receivables and sundry debtors 4,051 3,179 3,832 3,134
344,032 313,889 328,690 301,504
Credit risk exposure of off-balance sheet items:

Contingent liabilities 10,504 11,145 10,275 9,404
Credit commitments 128,848 119,152 122,375 111,042
139,352 130,297 132,650 120,446
Total maximum credit risk exposure 483,384 444,186 461,340 421,950
Collaterals
The main types of collaterals obtained by the Group are as follows:
• For personal housing loans, mortgages over residential properties;
• For commercial property loans, charges over the properties being financed;
• For derivatives, cash and securities;
• For car loans, charges over the vehicles financed;
• For share margin financing, listed securities including those of Singapore, Malaysia and Hong Kong; and
• For other loans, securities and charges over business assets such as premises, inventories, trade receivables or deposits.
73% of the loans and bills receivables as at 31 December 2017 (2016: 74%) are backed by collaterals and credit enhancements. The
financial effect of collaterals and credit enhancements held for the remaining on-balance sheet financial assets is expected to be
not significant.

39. RISK MANAGEMENT (continued)

39.2 CREDIT RISK (continued)
Total loans and advances – Credit quality
In addition to the credit grading of facilities under MAS Notice 612, loans and advances are required, under FRS 107, to be categorised
into “neither past due nor impaired”, “past due but not impaired” and “impaired”. Impaired loans are classified loans with specific
allowances made.
Bank loans Non-bank loans
$ million 2017 2016 2017 2016
Neither past due nor impaired 48,724 39,658 232,020 215,778
Not impaired – – 2,742 2,737
Impaired – – 1,208 1,505
Past due loans – – 3,950 4,242
Impaired but not past due – – 1,351 132
Gross loans 48,724 39,658 237,321 220,152
Specific allowances – – (1,236) (616)
Portfolio allowances – – (1,417) (2,241)
Net loans 48,724 39,658 234,668 217,295
Loans neither past due nor impaired

Analysis of loans and advances that are neither past due nor impaired analysed based on the Group’s internal credit grading system is
as follows:
$ million 2017 2016 2017 2016
Grades
Satisfactory and special mention 48,724 39,658 231,796 215,484
Substandard but not impaired – – 224 294
Neither past due nor impaired 48,724 39,658 232,020 215,778
Past due loans

Analysis of past due loans by industry and geography are as follows:
$ million 2017 2016 2017 2016
By industry
Agriculture, mining and quarrying – – 115 130
Manufacturing – – 303 352
Building and construction – – 156 138
General commerce – – 257 389
Transport, storage and communication – – 469 570
Financial institutions, investment and holding companies – – 358 452
Professionals and individuals (include housing) – – 2,074 1,802
Others – – 218 409
– – 3,950 4,242
By geography
Singapore – – 1,283 1,638
Malaysia – – 822 649
Indonesia – – 742 890
Greater China – – 931 769
Rest of the World – – 172 296
– – 3,950 4,242

Loans past due but not impaired
Certain loans and advances are past due but not impaired as the collateral values of these loans are in excess of the principal and
interest outstanding. Allowances for these loans may have been set aside on a portfolio basis. The Group’s non-bank loans which are
past due but not impaired are as follows:
$ million 2017 2016

Past due
Less than 30 days 1,229 1,122
30 to 90 days 985 944
Over 90 days 528 671
Past due but not impaired 2,742 2,737
Impaired loans and allowances

Non-bank loans that are individually determined to be impaired as at the reporting date are as follows:
$ million 2017 2016

Business segment
Global Consumer Financial Services 304 318
Global Corporate Banking 2,159 1,198
OCBC Wing Hang 68 96
Others 7 7
Individually impaired loans 2,538 1,619
Details on non-performing loans are set out in Note 27. The movements of specific and portfolio allowances account for loans are set
out in Notes 28 and 29 respectively.
Collaterals and other credit enhancements obtained

Assets amounting to $29 million (2016: $28 million) were obtained by the Group during the year by taking possession of collaterals held
as security, or by calling upon other credit enhancements and held at the reporting date.
Repossessed properties are made available for sale in an orderly fashion, with the proceeds used to reduce or repay the outstanding
indebtedness. The Group generally does not occupy the premises repossessed for its business use.


Country risk
The Group’s country risk framework covers the assessment and rating of countries, as well as the maximum cross-border transfer
risk limit granted to any one country based on its risk rating. The risk covers all cross-border transactions including onshore non-local
currency transactions. Limits are allocated into maturity time-bands and vary according to the risk rating of the country and the
political and economic outlook. Cross-border transfer risk exposures of more than 1% of assets were as follows:
Loans to
Government financial
and official institutions and Total As % of
$ million Banks institutions customers exposure assets
Exposure (1)
31 December 2017
Hong Kong SAR 16,538 136 14,401 31,075 8.2
People’s Republic of China 10,348 58 11,667 22,073 5.8
Malaysia 5,953 58 9,523 15,534 4.1
Indonesia 2,761 1,278 10,613 14,652 3.8
United States 2,437 2,601 2,537 7,575 2.0
Japan 2,347 1,989 1,763 6,099 1.6
United Arab Emirates 1,495 – 4,022 5,517 1.4
United Kingdom 2,835 16 2,099 4,950 1.3
31 December 2016
Hong Kong SAR 15,141 104 12,765 28,010 8.1
Malaysia 6,640 70 8,824 15,534 4.5
People’s Republic of China 5,816 51 7,882 13,749 4.0
Indonesia 3,408 545 9,154 13,107 3.8
British Virgin Islands – – 8,615 8,615 2.5
Japan 2,716 2,331 1,380 6,427 1.8
United States 1,818 2,331 1,936 6,085 1.7
United Kingdom 3,104 16 2,759 5,879 1.7
Australia 3,627 # 1,694 5,321 1.5
Luxembourg 3,438 – 176 3,614 1.0
(1)
Assets (excluding life assurance fund investment assets) of $381,011 million (2016: $347,911 million).
(2)
39.3 MARKET RISK AND ASSET LIABILITY MANAGEMENT

Disclosures on the Group’s market risk management, and the Value-at-Risk (“VaR”) summary of its trading portfolio, are in the Risk
Management Section.
The Group’s Asset Liability Management framework consists of three components:

• Interest rate risk management;
• Structural foreign exchange risk management; and
• Liquidity management.
The objectives, policies and processes of asset liability management are in the Risk Management Section.

39.3 MARKET RISK AND ASSET LIABILITY MANAGEMENT (continued)
Interest rate risk
The table below summarises the Group’s financial instruments at carrying amounts, categorised by the earlier of contractual re-pricing
or maturity dates, except for trading portfolio liabilities which is in accordance with the Group’s trading strategies.
Non-
Within 1 week to 1 to 3 3 to 12 1 to 3 Over interest
$ million 1 week 1 month months months years 3 years sensitive Total
2017
Cash and placements with central banks 8,866 2,740 1,721 – – 882 5,385 19,594
Placements with and loans to banks 6,358 9,002 15,457 14,301 – – 3,606 48,724
Loans and bills receivable (1) 49,877 62,979 86,532 27,136 3,954 1,457 2,733 234,668
Securities (2) 588 3,608 7,839 12,931 11,429 11,025 5,714 53,134
Derivative receivables – – – – – – 6,386 6,386
Other assets 645 10 1 1 17 44 4,933 5,651
Amounts due from associates – 102 41 – – – – 143
Financial assets 66,334 78,441 111,591 54,369 15,400 13,408 28,757 368,300
Deposits of non-bank customers 39,855 47,961 65,548 90,946 4,302 685 34,345 283,642
Deposits and balances of banks 1,847 1,280 1,466 132 – – 2,760 7,485
Trading portfolio liabilities – – 585 – – – 37 622
Derivative payables – – – – – – 6,454 6,454
Other liabilities (3) 33 9 104 69 – – 6,070 6,285
Debt issued 1,343 3,585 12,388 8,444 2,320 4,152 3 32,235
Financial liabilities 43,078 52,835 80,091 99,591 6,622 4,837 49,669 336,723
On-balance sheet sensitivity gap 23,256 25,606 31,500 (45,222) 8,778 8,571
Off-balance sheet sensitivity gap (196) 2,289 1,466 (4,654) 1,096 (1)
Net interest sensitivity gap 23,060 27,895 32,966 (49,876) 9,874 8,570
2016
Cash and placements with central banks 5,888 2,935 260 1,144 418 866 5,048 16,559
Placements with and loans to banks 5,168 6,723 11,418 14,537 145 – 1,667 39,658
Loans and bills receivable (1) 53,858 59,900 70,879 23,500 6,279 2,792 87 217,295
Securities (2) 546 2,942 8,587 11,787 12,346 9,007 3,103 48,318
Derivative receivables – – – – – – 7,838 7,838
Other assets 634 7 # 14 # 37 4,197 4,889
Amounts due from associates 21 – – – – – – 21
Financial assets 66,115 72,507 91,144 50,982 19,188 12,702 21,940 334,578
Deposits of non-bank customers 65,552 37,400 85,170 32,670 4,988 1,776 33,930 261,486
Deposits and balances of banks 3,685 2,697 1,628 394 – – 2,336 10,740
Derivative payables – – – – – – 7,474 7,474
Other liabilities (3) 12 16 79 93 – – 5,596 5,796
Debt issued 1,083 1,696 4,456 6,382 3,615 2,701 14 19,947
Financial liabilities 70,332 41,809 91,865 39,539 8,603 4,477 49,416 306,041
On-balance sheet sensitivity gap (4,217) 30,698 (721) 11,443 10,585 8,225
Off-balance sheet sensitivity gap 388 1,888 2,346 (3,349) (102) (1,171)
Net interest sensitivity gap (3,829) 32,586 1,625 8,094 10,483 7,054
(1)
Net of portfolio allowances for loans.
(2)
Securities comprise trading and investment portfolio of government, debt and equity securities (including assets pledged).
(3)
Other liabilities include amounts due to associates.
(4)


Interest rate risk (continued)
The significant market risk faced by the Group is interest rate risk arising from the re-pricing mismatches of assets and liabilities
from its banking businesses. These are monitored through tenor limits and net interest income changes. One way of expressing this
sensitivity for all interest rate sensitive positions, whether marked to market or subject to amortised cost accounting, is the impact on
their fair values of basis point change in interest rates.
The Bank’s interest rate risk is monitored using a variety of risk metrics at a frequency that is commensurate with the changes in
structural risk profile. The impact on net interest income of the banking book is simulated under various interest rate scenarios and
assumptions. Based on a 100 bp parallel rise in yield curves on the Group's exposure to major currencies i.e. Singapore Dollar, US
Dollar, Hong Kong Dollar and Malaysian Ringgit, net interest income is estimated to increase by $436 million (2016: $580 million),
or approximately +8.0% (2016: +11.5%) of reported net interest income. The corresponding impact from a 100 bp decrease is an
estimated reduction of $446 million (2016: $522 million) in net interest income, or approximately -8.2% (2016: -10.3%) of reported net
interest income.
The 1% rate shock impact on net interest income is based on simplified scenarios, using the Group’s interest rate risk profile as at
reporting date. It does not take into account actions that would be taken by Global Treasury or the business units to mitigate the
impact of this interest rate risk. In reality, Global Treasury seeks proactively to change the interest rate risk profile to minimise losses
and maximise net revenues. The projection assumes that interest rates of all maturities move by the same amount and, therefore, do
not reflect the potential impact on net interest income of some rates changing while others remain unchanged. The projections also
assume a constant balance sheet position and that all positions run to maturity.

Currency risk
The Group’s foreign exchange position by major currencies is shown below. “Others” include mainly Indonesian Rupiah, Chinese
Renminbi, Australian Dollar, Euro, Japanese Yen and Sterling Pound.
$ million SGD USD MYR HKD Others Total

2017
Cash and placements with central banks 9,040 3,368 2,132 305 4,749 19,594
Placements with and loans to banks 961 34,167 813 1,098 11,685 48,724
Loans and bills receivable 84,827 60,475 20,116 32,782 36,468 234,668
Securities (1) 13,639 13,569 4,271 1,556 20,099 53,134
Derivative receivables 1,886 2,559 82 551 1,308 6,386
Other assets 3,074 983 734 313 547 5,651
Amounts due from associates – – – – 143 143
Financial assets 113,427 115,121 28,148 36,605 74,999 368,300
Deposits of non-bank customers 97,665 93,415 22,364 28,640 41,558 283,642

Deposits and balances of banks 798 4,635 242 595 1,215 7,485
Trading portfolio liabilities 586 6 – 30 – 622
Derivative payables 1,866 2,465 154 514 1,455 6,454
Other liabilities (2) 2,746 1,608 612 526 793 6,285
Debt issued 457 21,778 228 327 9,445 32,235
Financial liabilities 104,118 123,907 23,600 30,632 54,466 336,723
Net financial assets/(liabilities) exposure (3) 9,309 (8,786) 4,548 5,973 20,533
2016
Cash and placements with central banks 6,813 2,027 2,507 173 5,039 16,559
Placements with and loans to banks 597 27,740 698 2,301 8,322 39,658
Loans and bills receivable 80,002 56,245 20,140 30,103 30,805 217,295
Securities (1) 12,269 14,663 3,697 1,499 16,190 48,318
Derivative receivables 2,228 4,024 150 421 1,015 7,838
Other assets 2,006 1,170 708 305 700 4,889
Amounts due from associates – – – – 21 21
Financial assets 103,915 105,869 27,900 34,802 62,092 334,578
Deposits of non-bank customers 94,413 80,402 21,701 27,336 37,634 261,486

Deposits and balances of banks 716 5,457 534 922 3,111 10,740
Trading portfolio liabilities 445 104 – 42 7 598
Derivative payables 2,349 3,793 97 436 799 7,474
Other liabilities (2) 2,423 1,394 643 457 879 5,796
Debt issued 475 14,779 418 524 3,751 19,947
Financial liabilities 100,821 105,929 23,393 29,717 46,181 306,041
Net financial assets/(liabilities) exposure (3) 3,094 (60) 4,507 5,085 15,911
(1)
(2)
(3)
Net exposure without taking into account effect of offsetting derivative exposure.


Structural foreign exchange risk
Structural foreign exchange risks arise primarily from the Group’s net investments in overseas branches, subsidiaries and associates,
strategic equity investments as well as property assets. The Group uses foreign currency forwards, swaps and borrowings to hedge its
exposure. The table below shows the Group’s structural foreign currency exposure at reporting date.
2017 2016
Structural Hedging Net structural Structural Hedging Net structural
currency financial currency currency financial currency
$ million exposure instruments exposure exposure instruments exposure
Hong Kong Dollar 6,208 3,110 3,098 6,530 3,670 2,860
US Dollar 4,180 2,266 1,914 4,179 2,162 2,017
Chinese Renminbi 3,663 – 3,663 2,700 – 2,700
Others 6,639 640 5,999 5,889 1,497 4,392
Total 20,690 6,016 14,674 19,298 7,329 11,969
Liquidity risk
The table below analyses the carrying value of assets and liabilities of the Group into maturity time bands based on the remaining term
to contractual maturity as at the balance sheet date.
No
Within 1 week to 1 to 3 3 to 12 1 to 3 Over specific
$ million 1 week 1 month months months years 3 years maturity Total
2017
Cash and placements with
central banks 9,157 2,874 1,746 57 – – 5,760 19,594
Placements with and loans to banks 7,770 8,208 14,329 16,583 1,216 618 – 48,724
Loans and bills receivable 17,535 28,022 20,589 29,257 36,861 102,404 – 234,668
Securities (1) 525 2,723 5,406 14,292 12,627 13,639 3,922 53,134
Derivative receivables 6,101 3 10 # 3 269 – 6,386
Other assets (2) 1,260 937 335 2,029 598 82 584 5,825
Associates – 102 41 – 1 – 2,208 2,352
Property, plant and equipment and
investment property (3) – – 2 37 – – 3,703 3,742
Goodwill and intangible assets – – – – – – 5,160 5,160
Total 42,348 42,869 42,458 62,255 51,306 117,012 21,337 379,585
Total life assurance fund assets 75,353
Deposits of non-bank customers 158,604 42,211 42,201 37,456 1,328 1,842 – 283,642
Deposits and balances of banks 4,836 1,282 1,221 146 – – – 7,485
Derivative payables 6,416 5 18 1 8 6 – 6,454
Other liabilities (4) 2,285 1,091 956 2,070 53 89 827 7,371
Debt issued 1,343 3,065 10,959 9,251 3,465 4,152 – 32,235
Total 173,484 47,654 55,940 48,924 4,854 6,089 864 337,809
Total life assurance fund liabilities 75,353
Net liquidity gap (131,136) (4,785) (13,482) 13,331 46,452 110,923

(1)
(2)
Other assets include deferred tax assets.
(3)
Property, plant and equipment and investment property include assets held for sale.
(4)
Other liabilities include amounts due to associates, current tax and deferred tax liabilities.
(5)

Liquidity risk (continued)
No
Within 1 week to 1 to 3 3 to 12 1 to 3 Over specific
$ million 1 week 1 month months months years 3 years maturity Total
2016
Cash and placements with
central banks 6,075 2,890 343 1,450 418 – 5,383 16,559
Placements with and loans to banks 6,756 5,646 10,716 15,388 752 400 – 39,658
Loans and bills receivable 15,717 25,724 16,172 24,713 38,003 96,966 – 217,295
Securities (1) 433 1,747 5,149 11,819 14,336 11,745 3,089 48,318
Derivative receivables 7,661 60 40 5 13 59 – 7,838
Other assets (2) 1,299 810 439 1,327 535 80 596 5,086
Associates 21 – – – – – 2,394 2,415
Property, plant and equipment and
investment property (3) – – 26 2 – – 3,981 4,009
Goodwill and intangible assets – – – – – – 5,473 5,473
Total 37,962 36,877 32,885 54,704 54,057 109,250 20,916 346,651
Total life assurance fund assets 63,233
Deposits of non-bank customers 147,136 34,827 42,060 33,565 2,045 1,853 – 261,486
Deposits and balances of banks 6,413 2,309 1,983 35 – – – 10,740
Derivative payables 7,244 24 15 169 8 14 – 7,474
Other liabilities (4) 2,399 996 792 1,693 24 77 783 6,764
Debt issued 1,083 1,697 3,305 6,395 4,452 3,015 – 19,947
Total 164,275 39,853 48,687 41,857 6,529 4,959 849 307,009
Total life assurance fund liabilities 63,233
Net liquidity gap (126,313) (2,976) (15,802) 12,847 47,528 104,291

(1)
(2)
Other assets include deferred tax assets.
(3)
Property, plant and equipment and investment property include assets held for sale.
(4)
Other liabilities include amounts due to associates, current tax and deferred tax liabilities.
As contractual maturities may not necessarily reflect the timing of actual cash flows of assets and liabilities, cash flows for liquidity risk
analysis are based on a contractual and behavioural basis.


Contractual maturity for financial liabilities
The table below shows the undiscounted cash outflows of the Group’s financial liabilities by remaining contractual maturities, except
for trading portfolio liabilities which is in accordance with the Group’s trading strategies. Information on cash outflow of gross loan
commitments is set out in Note 44. The expected cash flows of these liabilities could vary significantly from what is shown in the table.
For example, deposits of non-bank customers included demand deposits, such as current and savings (Note 17) which are expected to
remain stable, and unrecognised loan commitments are not all expected to be drawn down immediately.
Within 1 week to 1 to 3 3 to 12 1 to 3 Over

$ million 1 week 1 month months months years 3 years Total
2017
Deposits of non-bank customers (1) 158,644 42,379 42,540 37,957 1,430 1,884 284,834
Deposits and balances of banks (1) 4,838 1,285 1,226 154 – – 7,503
Trading portfolio liabilities – – 622 – – – 622
Other liabilities (2) 2,494 547 919 712 37 73 4,782
Debt issued 1,344 3,075 11,010 9,423 3,742 4,538 33,132
Net settled derivatives
Trading 349 129 300 724 711 842 3,055
Hedging # 12 2 (8) 8 2 16
Gross settled derivatives
Trading – Outflow 33,843 55,655 58,991 63,338 17,410 18,271 247,508
Trading – Inflow (33,794) (55,655) (59,141) (63,330) (17,390) (18,147) (247,457)
Hedging – Outflow 321 294 858 27 85 1,571 3,156
Hedging – Inflow (304) (294) (852) (2) (8) (1,606) (3,066)
167,735 47,427 56,475 48,995 6,025 7,428 334,085
2016
Deposits of non-bank customers (1) 147,212 34,899 42,306 34,115 2,091 1,946 262,569
Deposits and balances of banks (1) 6,415 2,314 1,989 35 – – 10,753
Trading portfolio liabilities – – 598 – – – 598
Other liabilities (2) 2,175 644 637 746 13 182 4,397
Debt issued 1,084 1,708 3,360 6,647 4,833 3,477 21,109
Net settled derivatives
Trading 705 130 209 509 657 1,115 3,325
Hedging (#) 1 5 10 13 1 30
Gross settled derivatives
Trading – Outflow 21,103 47,087 47,997 51,898 13,405 10,977 192,467
Trading – Inflow (21,414) (48,981) (49,123) (52,636) (13,430) (11,749) (197,333)
Hedging – Outflow 373 2,072 1,682 615 – – 4,742
Hedging – Inflow (374) (2,064) (1,681) (445) – – (4,564)
157,279 37,810 47,979 41,494 7,582 5,949 298,093
(1)
Interest cash flows of bank and non-bank deposits are included in the respective deposit lines based on interest payment dates.
(2)
(3)
39.4 OTHER RISK AREAS

Details of the Group’s management of operational, fiduciary and reputation risks are disclosed in the Risk Management Section.

39.5 INSURANCE-RELATED RISK MANAGEMENT
This note sets out the risk management information of GEH Group.
Governance framework
Managing risk is an integral part of GEH Group’s core business. As stated in the Enterprise Risk Management (“ERM”) Framework,
GEH Group shall operate within parameters and limits that have been set based on the risk appetite approved by the GEH Board, and
pursue appropriate risk-adjusted returns.
GEH Group Risk Management department spearheads the development and implementation of the ERM Framework for GEH Group.
GEH Board is responsible to provide oversight on the risk management initiatives. The GEH Board may delegate this responsibility to
the Risk Management Committee (“RMC”). At GEH Group level, detailed risk management and oversight activities are undertaken by
the following group management committees chaired by the Group Chief Executive Officer and comprising key Senior Management
Executives, namely: Group Management Committee (“GMC”), Group Asset-Liability Committee (“Group ALC”) and Group Information
Technology Steering Committee (“Group ITSC”).
GMC is responsible for providing leadership, direction and functional oversight with regards to all matters of GEH Group. The GMC is
also responsible for ensuring compliance and alignment with Group Governance and Oversight Framework, i.e. Group standards and
guidelines. The GMC is supported by the local Senior Management Team (“SMT”) and Product Development Committee (“PDC”).
Group ALC is responsible for balance sheet management. Specifically, Group ALC reviews and formulates technical frameworks, policies
and methodologies relating to balance sheet management. Group ALC is also responsible for ensuring compliance and alignment with
Group Governance and Oversight Framework, i.e. Group standards and guidelines. Group ALC is supported by the local Asset-Liability
Committee (“ALC”).
Regulatory framework
Insurers are required to comply with the Insurance Act and Regulations, as applicable, including guidelines on investment limits.
The responsibility for the formulation, establishment and approval of the investment policy rests with the respective Board of Directors
(“Board”) of the insurance subsidiaries. The Board exercises oversight on investments to safeguard the interests of policyholders
and shareholders.
Capital management
GEH’s capital management policy is to create shareholder value, deliver sustainable returns to shareholders, maintain a strong capital
position with sufficient buffer to meet policyholders’ obligations and regulatory requirements and make strategic investments for
business growth.
GEH Group has had no significant changes in the policies and processes relating to its capital structure during the year.
Regulatory capital
The insurance subsidiaries of GEH Group are required to comply with capital ratios prescribed by the insurance regulations of the
jurisdiction in which the subsidiaries operate. The Capital Adequacy Ratios of GEH Group’s insurance subsidiaries in both Singapore and
Malaysia remained well above the minimum regulatory ratios under the Risk based Capital Frameworks regulated by the Monetary
Authority of Singapore (“MAS”) and Bank Negara, Malaysia (“BNM”) respectively.
GEH Group’s approach to capital management requires adequate capital to meet industry requirements, including any additional
amounts required by the respective regulators. This involves managing assets, liabilities and risks in a coordinated way by assessing and
monitoring available and required capital (by each regulated entity) on a regular basis and, where appropriate, taking suitable actions to
influence the capital position of GEH Group in light of changes in economic conditions and risk characteristics.
The primary sources of capital of GEH Group are shareholders’ funds and issued subordinated debt. Available capital of the consolidated
Singapore insurance subsidiaries as at 31 December 2017 amounted to $11.8 billion (2016: $10.3 billion) while available capital of the
consolidated Malaysia insurance subsidiaries as at 31 December 2017 amounted to $8.2 billion (2016: $7.2 billion).
Dividend
GEH’s dividend policy aims to provide shareholders with a predictable and sustainable dividend return, payable on a half-yearly basis.


39.5 INSURANCE-RELATED RISK MANAGEMENT (continued)
Financial risk management
The following sections provide details regarding GEH Group’s exposure to insurance and key financial risks and the objectives, policies
and processes for the management of these risks.
There has been no change to GEH Group’s exposure to these insurance and key financial risks or the manner in which it manages and
measures the risks.
Insurance risk
The principal activities of GEH Group are the provision of financial advisory services coupled with insurance protection against risks
such as mortality, morbidity (health, disability, critical illness and personal accident), property and casualty.
GEH Group’s underwriting strategy is designed to ensure that these risks are well diversified in terms of type of risk and level of insured
benefits. This is largely achieved through diversification across industry sectors and geography, the use of medical screening in order
to ensure that pricing takes account of current health conditions and family medical history, regular review of actual claims experience
and product pricing, as well as detailed claims handling procedures. Underwriting limits are also set in place to enforce appropriate risk
selection criteria. For example, GEH Group has the right not to renew individual policies, it can impose deductibles and it has the right
to reject the payment of fraudulent claims.
Risks inherent in GEH Group’s activities include but are not limited to the risks discussed below.
Insurance risk of life insurance contracts

Insurance risks arise when GEH Group underwrites insurance contracts. While insurance risks do not vary significantly across the
geographical locations in which GEH Group currently operates, the types of risks insured and industries, assumptions used in pricing
the insurance products as well as subsequent setting of the technical provisions may give rise to potential shortfalls in provision for
future claims and expenses when actual experience is different from expected experience. Assumptions that may cause insurance risks
to be underestimated include assumptions on policy lapses, mortality, morbidity and expenses.
GEH Group utilises reinsurance to manage the mortality and morbidity risks. GEH Group’s reinsurance management strategy and
policy are reviewed annually by RMC and Group ALC. Reinsurance structures are set based on the type of risk. Catastrophe reinsurance
is procured to limit catastrophic losses. GEH Group’s exposure to group insurance business is not significant, thus there is no material
concentrations in insurance risk.
Only reinsurers meeting a minimum credit rating of S&P A- or equivalent are considered when deciding on which reinsurers to
reinsure GEH Group’s risk. GEH Group limits its risk to any one reinsurer by ceding different products to different reinsurers or to a panel
of reinsurers.
Group ALC reviews the actual experience of mortality, morbidity, lapses and surrenders, and expenses to ensure that the policies,
guidelines and limits put in place to manage the risks remain adequate and appropriate.
A substantial portion of GEH Group’s life assurance funds is participating in nature. In the event of volatile investment climate and/or
unusual claims experience, the insurer has the option of revising the bonus and dividends payable to policyholders.
For non-participating funds, the risk is that the guaranteed policy benefits must be met even when investment markets perform
poorly, or claims experience is higher than expected.
For investment-linked funds, the risk exposure for GEH Group is limited only to the underwriting aspect as all investment risks are borne
by the policyholders.
Stress Testing (“ST”) is performed at least once a year. The purpose of the ST is to test the solvency of the life fund under various
scenarios according to prescribed statutory valuation basis, simulating drastic changes in major parameters such as new business
volume, investment scenarios, expense patterns, mortality/morbidity patterns and lapse rates.

Insurance risk (continued)
Table 39.5(A): Concentration of life insurance risk, net of reinsurance
Life Assurance
Insurance liabilities ($ million) 2017 2016
(a) By class of business
Whole life 35,136 30,880
Endowment 23,172 18,322
Term 431 419
Accident and health 1,751 1,588
Annuity 535 547
Others 1,205 1,156
Total 62,230 52,912
(b) By country
Singapore 42,745 34,653
Malaysia 18,936 17,783
Others 549 476
Total 62,230 52,912
The sensitivity analysis below shows the impact of change in key parameters on the value of policy liabilities, and hence on the income
statements and shareholders’ equity.
Sensitivity analysis produced below are based on parameters set out as follows:
(a) Scenario 1 – Mortality and Major Illness + 25% for all future years
(b) Scenario 2 – Mortality and Major Illness – 25% for all future years
(c) Scenario 3 – Health and Disability + 25% for all future years
(d) Scenario 4 – Health and Disability – 25% for all future years
(e) Scenario 5 – Lapse and Surrender Rates + 25% for all future years
(f) Scenario 6 – Lapse and Surrender Rates – 25% for all future years
(g) Scenario 7 – Expenses + 30% for all future years
Table 39.5(B1): Profit/(loss) after tax and shareholders’ equity sensitivity for the Singapore segment
Impact on 1-year’s profit/(loss) after tax and shareholders’ equity
$ million Scenario 1 Scenario 2 Scenario 3 Scenario 4 Scenario 5 Scenario 6 Scenario 7

2017
Gross impact (90.9) 8.8 38.6 (82.6) 57.4 (68.7) (25.9)
Reinsurance ceded – – – – – – –
Net impact (90.9) 8.8 38.6 (82.6) 57.4 (68.7) (25.9)
2016
Gross impact (22.8) (51.4) 60.9 (88.0) 58.1 (72.1) (21.8)
Net impact (22.8) (51.4) 60.9 (88.0) 58.1 (72.1) (21.8)


Table 39.5(B2): Profit/(loss) after tax and shareholders’ equity sensitivity for the Malaysia segment
Impact on 1-year’s profit/(loss) after tax and shareholders’ equity
$ million Scenario 1 Scenario 2 Scenario 3 Scenario 4 Scenario 5 Scenario 6 Scenario 7

2017
Gross impact (80.4) 67.8 (15.0) 12.0 (5.1) 6.9 (19.7)
Net impact (80.4) 67.8 (15.0) 12.0 (5.1) 6.9 (19.7)
2016
Gross impact (70.4) 59.1 (11.9) 10.5 (6.5) 7.7 (11.7)
Net impact (70.4) 59.1 (11.9) 10.5 (6.5) 7.7 (11.7)
The above tables demonstrate the sensitivity of GEH Group’s profit and loss after tax to a reasonably possible change in actuarial
valuation assumptions on an individual basis with all other variables held constant.
The effect of sensitivity analysis on reinsurance ceded for the Singapore and Malaysia segments are not material.
The method used, including the significant assumptions made, for performing the above sensitivity analysis did not change from the
previous year.
Insurance risk of non-life insurance contracts

Risks under non-life insurance policies usually cover a twelve-month duration. The risk inherent in non-life insurance contracts is
reflected in the insurance contract liabilities which include the premium and claims liabilities. The premium liabilities comprise reserve
for unexpired risks, while the claims liabilities comprise the loss reserves which include both provision for outstanding claims notified
and outstanding claims incurred but not reported.

Table 39.5(C1): Concentration of non-life insurance risk
2017 2016
Gross Reinsured Net Gross Reinsured Net
Non-life insurance contracts premium premium premium premium premium premium
$ million liabilities liabilities liabilities liabilities liabilities liabilities
Fire 19 (7) 12 29 (18) 11
Motor 30 – 30 26 (1) 25
Marine and aviation 6 (5) 1 8 (7) 1
Workmen’s compensation 13 (4) 9 13 (4) 9
Personal accident and health 19 1 20 20 (2) 18
Miscellaneous 42 (29) 13 29 (18) 11
Total 129 (44) 85 125 (50) 75
(b) By country
Singapore 65 (29) 36 64 (31) 33
Malaysia 64 (15) 49 61 (19) 42
Total 129 (44) 85 125 (50) 75
2017 2016
Gross Reinsured Net Gross Reinsured Net
Non-life insurance contracts claims claims claims claims claims claims
$ million liabilities liabilities liabilities liabilities liabilities liabilities
Fire 28 (20) 8 40 (31) 9
Motor 56 (3) 53 65 (5) 60
Marine and aviation 23 (20) 3 12 (9) 3
Workmen’s compensation 25 (9) 16 26 (10) 16
Personal accident and health 14 (1) 13 15 (2) 13
Miscellaneous 84 (67) 17 63 (48) 15
Total 230 (120) 110 221 (105) 116
(b) By country
Singapore 108 (61) 47 93 (44) 49
Malaysia 122 (59) 63 128 (61) 67
Total 230 (120) 110 221 (105) 116


Table 39.5(C2): Cumulative claims estimates and cumulative payments to-date
The tables below show the cumulative claims estimates, including both claims notified and IBNR for each successive accident year, at
each balance sheet date, together with cumulative payments to date.
(i) Gross non-life insurance contract liabilities for 2017
$ million 2010 2011 2012 2013 2014 2015 2016 2017 Total
(a) Estimate of cumulative claims
Accident Year 69 112 94 138 127 167 178 168
One year later 85 113 100 131 119 162 178 –
Two years later 84 96 97 118 116 134 – –
Three years later 79 92 94 116 112 – – –
Four years later 76 86 90 120 – – – –
Five years later 75 85 87 – – – – –
Six years later 72 83 – – – – – –
Seven years later 71 – – – – – – –
Current estimate of cumulative claims 71 83 87 120 112 134 178 168
(b) Cumulative payments

Accident Year 27 36 37 38 39 52 82 64
One year later 58 64 64 79 88 105 139 –
Two years later 67 75 76 91 97 114 – –
Four years later 71 80 84 112 – – – –
Six years later 71 82 – – – – – –
Cumulative payments 71 82 84 112 99 114 139 64
(c) Non-life gross claim liabilities # 1 3 8 13 20 39 104 188

Reserve for prior years 44
Unallocated surplus (1)
General Insurance Fund Contract
Liabilities, gross 231
(1)

(ii) Non-life insurance contract liabilities, net of reinsurance of liabilities for 2017
$ million 2010 2011 2012 2013 2014 2015 2016 2017 Total
(a) Estimate of cumulative claims
Accident Year 46 73 64 93 81 83 91 93
One year later 60 78 70 74 77 79 85 –
Two years later 59 61 67 72 76 75 – –
Four years later 54 55 63 69 – – – –
Six years later 52 53 – – – – – –
Current estimate of cumulative claims 51 53 62 69 75 75 85 93
(b) Cumulative payments

Accident Year 21 25 32 30 32 30 41 44
One year later 44 44 50 55 59 56 66 –
Two years later 48 49 56 61 65 62 – –
Four years later 51 52 60 65 – – – –
Six years later 51 52 – – – – – –
Cumulative payments 51 52 60 65 67 62 66 44
(c) Non-life net claim liabilities # 1 2 4 8 13 19 49 96

Reserve for prior years 15
Unallocated surplus (1)
General Insurance Fund Contract
Liabilities, net 110
(1)
Key assumptions
Non-life insurance contract liabilities are determined based on previous claims experience, existing knowledge of events, the terms and
conditions of the relevant policies and interpretation of circumstances. Of particular relevance is past experience with similar cases,
historical claims development trends, legislative changes, judicial decisions, economic conditions and claims handling procedures. The
estimates of the non-life insurance contract liabilities are therefore sensitive to various factors and uncertainties. The actual future
premium and claims liabilities will not develop exactly as projected and may vary from initial estimates.
Insurance risk of non-life insurance contracts is mitigated by emphasising diversification across a large portfolio of insurance contracts
and geographical areas. The variability of risks is improved by careful selection and implementation of underwriting strategies, which
are designed to ensure that risks are diversified in terms of type of risk and level of insured benefits. This is largely achieved through
diversification across industry sectors and geography. Further, strict claim review policies to assess all new and ongoing claims, regular
detailed review of claims handling procedures and frequent investigation of possible fraudulent claims are put in place to reduce the
risk exposure of GEH Group. GEH Group further enforces a policy of actively managing and prompt pursuing of claims, in order to
reduce its exposure to unpredictable future developments that can negatively impact the Group.
GEH Group has also limited its exposure by imposing maximum claim amounts on certain contracts as well as the use of reinsurance
arrangements in order to limit exposure to catastrophic events, e.g. hurricanes, earthquakes and flood damages.


The sensitivity analysis below shows the impact of changes in key assumptions on gross and net liabilities, profit before tax and equity.
Impact on
Change in Gross Net Profit
$ million assumptions liabilities liabilities before tax Equity
2017
Provision for adverse deviation margin +20% 5 3 (3) (2)
Loss ratio (1) +20% 75 43 (43) (33)
Claims handling expenses +20% 1 4 (4) (3)
2016
Provision for adverse deviation margin +20% 3 2 (2) (1)
Loss ratio (1) +20% 59 38 (38) (30)
Claims handling expenses +20% 1 3 (3) (2)
(1)
Best estimate reserves and current accident year payments.
The method used and significant assumptions made for deriving sensitivity information above did not change from the previous year.
Market and credit risk

Market risk arises when the market value of assets and liabilities do not move consistently as financial markets change. Changes in
interest rates, foreign exchange rates, equity prices and alternative investment prices can impact present and future earnings of the
insurance operations as well as shareholders’ equity.
GEH Group is exposed to market risk in the investments of the Shareholders’ Fund as well as in the mismatch risk between the assets
and liabilities of the Insurance Funds. In the case of the funds managed by its asset management subsidiary, Lion Global Investors
Limited, investment risks are borne by investors and GEH Group does not assume any liability in the event of occurrence of loss or
write-down in market valuation.
GEH Group ALC and local ALCs actively manage market risks through setting of investment policy and asset allocation, approving portfolio
construction and risk measurement methodologies, approving hedging and alternative risk transfer strategies. Investment limits are
monitored at various levels to ensure that all investment activities are conducted within GEH Group’s risk appetite and in line with
GEH Group’s management principles and philosophies. Compliance with established limits forms an integral part of the risk governance
and financial reporting framework. The approach adopted by GEH Group in managing the various types of risk, including interest rate risk,
foreign exchange risk, equity price risk, credit risk, alternative investment risk and liquidity risk, is briefly described below.
(a) Interest rate risk (including asset liability mismatch)

GEH Group is exposed to interest rate risk through (i) investments in fixed income instruments in both the Shareholders’ Fund as well
as the Insurance Funds and (ii) policy liabilities in the Insurance Funds. Since the Shareholders’ Fund has exposure to investments in
fixed income instruments but no exposure to insurance policy liabilities, it will incur an economic loss when interest rates rise. Given
the long duration of policy liabilities and the uncertainty of the cash flows of the Insurance Funds, it is not possible to hold assets
that will perfectly match the policy liabilities. This results in a net interest rate risk or asset liability mismatch risk which is managed
and monitored by GEH Group ALC and local ALCs. The Insurance Funds will incur an economic loss when interest rates drop since the
duration of policy liabilities is generally longer than the duration of the fixed income assets.
Under Singapore regulations governed by the MAS, the liability cash flows with durations less than 20 years are discounted using zero-
coupon spot yield of SGS while liability cash flows with duration more than 20 years for Singapore funds are discounted using the Long
Term Risk Free Discount Rate (“LTRFDR”). As a result, the Singapore Non Participating funds could have negative earnings impact when
the LTRFDR decreases.
Under Malaysia regulations governed by BNM, the liability cash flows with durations less than 15 years are discounted using zero-
coupon spot yield of MGS with matching duration while the liability cash flows with durations of 15 years or more are discounted using
zero-coupon spot yield of MGS with 15 years term to maturity. As a result, the Malaysia non-participating fund could have negative
earnings impact when the zero-coupon spot yield of MGS decreases.

Market and credit risk (continued)
(b) Foreign currency risk
Hedging through currency forwards and swaps is typically used for the fixed income portfolio. Internal limits on foreign exchange
exposures ranging from 15% to 35% are applied to investments in fixed income portfolios at a fund level. Currency risk derived from
investments in foreign equities is generally not hedged.
GEH Group is also exposed to foreign exchange risk on the net investment in its foreign subsidiaries. Such risk mainly arises from
GEH Group’s subsidiaries in Malaysia. The Insurance and Shareholders’ Funds in Malaysia are predominantly held in Malaysian Ringgit,
as prescribed by BNM.
The following table shows the foreign exchange position of GEH Group’s financial and insurance-related assets and liabilities by
major currencies.
Not subject
to foreign
$ million SGD MYR USD Others currency risk Total
2017
Equity securities 2,785 5,582 659 5,294 – 14,320
Debt securities 14,378 11,752 10,445 3,294 – 39,869
Other investments 3,128 199 2,399 1,203 – 6,929
Securities at fair value through profit or loss
Equity securities 100 1,677 252 507 – 2,536
Debt securities 21 692 159 308 – 1,180
Other investments 1,799 40 294 298 – 2,431
Financial instruments held-for-trading
Equity securities # 12 – – – 12
Debt securities 541 1,101 # – – 1,642
Derivative financial assets 231 – 6 2 – 239
Loans 432 927 – – – 1,359
Insurance receivables 1,052 1,620 6 23 – 2,701
Other debtors and interfund balances 960 289 139 129 2,214 3,731
Cash and cash equivalents 3,882 858 325 300 – 5,365
Financial and insurance-related assets 29,309 24,749 14,684 11,358 2,214 82,314
Other creditors and interfund balances 1,344 291 160 295 2,214 4,304
Insurance payables 1,105 3,001 4 14 – 4,124
Derivative financial payables 4 14 115 247 – 380
Provision for agents’ retirement benefits – 276 – – – 276
Debt issued 400 – – – – 400
General insurance fund contract liabilities 109 122 – – – 231
Life assurance fund contract liabilities 41,421 18,936 1,390 483 – 62,230
Financial and insurance-related liabilities 44,383 22,640 1,669 1,039 2,214 71,945
(1)


(b) Foreign currency risk (continued)
Not subject
to foreign
$ million SGD MYR USD Others currency risk Total
2016
Equity securities 2,859 3,544 469 4,212 – 11,084
Debt securities 13,651 12,164 9,528 591 – 35,934
Other investments 2,108 182 1,812 1,089 – 5,191
Equity securities 104 1,103 250 578 – 2,035
Debt securities 14 555 238 249 – 1,056
Other investments 1,397 46 278 271 – 1,992
Equity securities – 7 – – – 7
Debt securities 485 599 # 1 – 1,085
Loans 531 1,065 13 # – 1,609
Insurance receivables 1,013 1,560 9 23 – 2,605
Other debtors and interfund balances 680 452 99 24 1,386 2,641
Financial and insurance-related assets 24,989 22,152 13,040 7,284 1,386 68,851
Other creditors and interfund balances 830 253 99 59 1,386 2,627

Insurance payables 942 2,711 5 13 – 3,671
Derivative financial payables 79 – 613 45 – 737
Provision for agents’ retirement benefits – 263 – – – 263
Debt issued 400 – – – – 400
General insurance fund contract liabilities 93 128 – – – 221
Life assurance fund contract liabilities 33,384 17,783 1,314 431 – 52,912
Financial and insurance-related liabilities 35,728 21,138 2,031 548 1,386 60,831
(1)
GEH Group has no significant concentration of foreign currency risk.
(c) Equity price risk

Exposure to equity price risk exists in both assets and liabilities. Asset exposure exists through direct equity investment, where
GEH Group, through investments in both Shareholders’ Fund and Insurance Funds, bears all or most of the volatility in returns and
investment performance risk. Equity price risk also exists in investment-linked products where the revenues of the insurance operations
are linked to the value of the underlying equity funds since this has an impact on the level of fees earned. Limits are set for single
security holdings as a percentage of equity holdings.
(d) Credit spread risk

Exposure to credit spread risk exists in GEH Group’s investments in bonds. Credit spread is the difference between the quoted rates
of return of two different investments of different credit quality. When spreads widen between bonds with different quality ratings,
it implies that the market is factoring more risk of default on lower grade bonds. A widening in credit spreads will result in a fall in the
values of GEH Group’s bond portfolio.
(e) Alternative investment risk

GEH Group is exposed to alternative investment risk through investments in direct real estate that it owns in Singapore and Malaysia
and through real estate, private equity, infrastructure and hedge funds for exposures in other countries. A monitoring process is
in place to manage foreign exchange, country and manager concentration risks. This process and the acquisition or divestment of
alternative investments are reviewed and approved by RMC and GEH Group ALC.

(f) Commodity risk
GEH Group does not have a direct or significant exposure to commodity risk.
(g) Liquidity risk

Liquidity risk arises when a company is unable to meet the cash flow needs of its financial liabilities, or if the assets backing the
liabilities cannot be sold quickly enough without incurring unreasonable losses. For an insurance company, the greatest liquidity needs
typically arise from its insurance liabilities. Demands for funds can usually be met through ongoing normal operations, premiums
received, sale of assets or borrowings. Unexpected demands for liquidity may be triggered by negative publicity, deterioration of
the economy, reports of problems in other companies in the same or similar lines of business, unanticipated policy claims, or other
unexpected cash demands from policyholders.
Expected liquidity demands are managed through a combination of treasury, investment and asset-liability management practices,
which are monitored on an ongoing basis. Actual and projected cash inflows and outflows are monitored and a reasonable amount of
assets are kept in liquid instruments at all times. The projected cash flows from the in-force insurance policy contract liabilities consist
of renewal premiums, commissions, claims, maturities and surrenders. Renewal premiums, commissions, claims and maturities are
generally stable and predictable. Surrenders can be more uncertain although these have been quite stable over the past several years.
nexpected liquidity demands are managed through a combination of product design, diversification limits, investment strategies
U
and systematic monitoring. The existence of surrender penalty in insurance contracts also protects GEH Group from losses due to
unexpected surrender trends as well as reduces the sensitivity of surrenders to changes in interest rates.
The following tables show the expected recovery or settlement of financial and insurance-related assets and maturity profile of GEH
Group’s financial and insurance contract liabilities which are presented based on contractual undiscounted cash flow basis, except for
insurance contract liabilities which are presented based on net cash outflows resulting from recognised liabilities.
Less than 1 to 5 Over 5 No specific

$ million 1 year years years maturity Total
2017
Equity securities – – – 14,320 14,320
Debt securities 1,191 13,377 44,262 – 58,830
Other investments – – – 6,929 6,929
Debt securities 137 565 867 – 1,569
Equity securities 5 3 4 – 12
Debt securities 81 1,311 649 – 2,041
Loans 198 1,059 263 – 1,520
Insurance receivables 331 (1) (#) 2,371 2,701
Other debtors and interfund balances 3,642 4 18 67 3,731
Cash and cash equivalents 5,365 – – – 5,365
Financial and insurance-related assets 10,950 16,318 46,063 28,654 101,985
Other creditors and interfund balances 4,217 50 2 35 4,304

Insurance payables 3,247 866 4 7 4,124
Provision for agents’ retirement benefits 93 57 126 – 276
Debt issued 18 446 – – 464
General insurance fund contract liabilities 205 4 (#) 22 231
Life assurance fund contract liabilities 7,948 10,810 43,472 – 62,230
Financial and insurance-related liabilities 15,728 12,233 43,604 64 71,629
(1)


(g) Liquidity risk (continued)
Less than 1 to 5 Over 5 No specific

$ million 1 year years years maturity Total
2016
Debt securities 2,421 12,088 38,963 – 53,472
Equity securities # 7 # – 7
Loans 429 1,084 307 – 1,820
Insurance receivables 345 (3) – 2,263 2,605
Other debtors and interfund balances 2,546 3 61 31 2,641
Cash and cash equivalents 3,527 – – – 3,527
Financial and insurance-related assets 9,481 14,099 41,121 22,596 87,297
Other creditors and interfund balances 2,521 50 1 55 2,627

Insurance payables 3,147 512 5 7 3,671
Provision for agents’ retirement benefits 79 58 126 – 263
Debt issued 18 74 391 – 483
General insurance fund contract liabilities 189 7 (#) 25 221
Life assurance fund contract liabilities 7,280 6,447 39,185 – 52,912
Financial and insurance-related liabilities 13,234 7,148 39,708 87 60,177
(1)

(g) Liquidity risk (continued)
The following tables show the current/non-current classification of assets and liabilities:
$ million Current* Non-current Unit-linked Total

2017
Cash and cash equivalents 5,066 – 299 5,365
Other debtors and interfund balances 3,618 99 84 3,801
Insurance receivables 331 2,370 – 2,701
Loans 168 1,191 – 1,359
Investments, including derivative financial assets 10,433 52,836 5,889 69,158
Assets held for sale 4 – – 4
Associates – 2 – 2
Goodwill – 28 – 28
Property, plant and equipment – 591 – 591
Investment properties – 1,553 – 1,553
Assets 19,620 58,670 6,272 84,562
Insurance payables 3,244 868 12 4,124

Other creditors and interfund balances 4,140 86 109 4,335
Unexpired risk reserve 127 2 – 129
Derivative financial payables 34 342 4 380
Income tax 525 – 10 535
Provision for agents’ retirement benefits 93 183 – 276
Deferred tax – 1,353 22 1,375
Debt issued – 400 – 400
General insurance fund 205 29 – 234
Life assurance fund 1,717 57,133 6,294 65,144
Liabilities 10,085 60,396 6,451 76,932
2016
Cash and cash equivalents 3,219 – 308 3,527
Other debtors and interfund balances 2,592 49 50 2,691
Insurance receivables 345 2,260 – 2,605
Loans 420 1,189 – 1,609
Investments, including derivative financial assets 8,179 45,394 4,895 58,468
Associates – 47 – 47
Goodwill – 32 – 32
Property, plant and equipment – 605 – 605
Investment properties – 1,539 – 1,539
Assets 14,755 51,115 5,253 71,123
Insurance payables 3,144 516 11 3,671

Other creditors and interfund balances 2,481 107 66 2,654
Unexpired risk reserve 125 – – 125
Derivative financial payables 294 434 10 738
Income tax 441 – 5 446
Provision for agents’ retirement benefits 79 184 – 263
Deferred tax – 1,053 5 1,058
Debt issued – 400 – 400
General insurance fund 189 34 – 223
Life assurance fund 1,999 47,568 5,314 54,881
Liabilities 8,752 50,296 5,411 64,459
(1)
* represents expected recovery or settlement within 12 months from the balance sheet date.


(h) Credit risk
Credit risk is the risk that one party to a financial instrument will cause financial loss to the other party by failing to discharge an
obligation. GEH Group is mainly exposed to credit risk through (i) investments in cash and bonds, (ii) corporate lending activities and
(iii) exposure to counterparty’s credit in derivative transactions and reinsurance contracts. For all three types of exposures, financial
loss may materialise as a result of a credit default by the borrower or counterparty. For investments in bonds, financial loss may also
materialise as a result of the widening of credit spreads or a downgrade of credit rating.
The task of evaluating and monitoring credit risk is undertaken by the local ALCs. GEH group wide credit risk is managed by
GEH Group ALC. GEH Group has internal limits by issuer or counterparty and by investment grades. These limits are actively
monitored to manage the credit and concentration risk. These limits are reviewed on a regular basis. The creditworthiness of
reinsurers is assessed on an annual basis by reviewing their financial strength through published credit ratings and other publicly
available financial information.
Reinsurance is placed with counterparties that have a good credit rating and concentration of risk is avoided by following policy
guidelines in respect of counterparties’ limits that are set each year. Credit risk in respect of customer balances incurred on non-
payment of premiums or contributions will only persist during the grace period specified in the policy document or trust deed until
expiry, when the policy is either paid up or terminated. GEH Group issues unit-linked investment policies. In the unit-linked business, the
policyholder bears the investment risk on the assets held in the unit-linked funds as the policy benefits are directly linked to the value
of the assets in the fund. Therefore, GEH Group has no material credit risk on unit-linked financial assets.
The loans in GEH Group’s portfolio are generally secured by collaterals, with a maximum loan to value ratio of 70%. The amount and
type of collateral required depend on an assessment of the credit risk of the counterparty. Guidelines on the eligibility of collateral
have been established, and all collaterals are revalued on a regular basis. GEH management monitors the market value of the collateral,
requests additional collateral when needed and performs an impairment valuation when applicable. The fair value of collateral, held by
GEH Group as lender, for which it is entitled to sell or pledge in the event of default is as follows:
2017 2016
Carrying Fair value Carrying Fair value
$ million Type of collateral amount of collateral amount of collateral
Policy loans Cash value of policies 2,276 4,569 2,186 4,508
Secured loans Properties 679 1,231 955 2,217
Secured loans Others 431 (1) 8 435 (1) 21
3,386 5,808 3,576 6,746
(1)
This includes secured loans which are guaranteed by the government although there is no collateral held.
There were no investments lent and collateral received under securities lending arrangements as at 31 December 2017 (2016: nil).
As at the balance sheet date, no investments (2016: nil) were placed as collateral for currency hedging purposes.
Transactions are conducted under terms and conditions that are usual and customary for standard securities borrowing and
lending activities.

(h) Credit risk (continued)
The tables below show the maximum exposure to credit risk for the components of the balance sheet of GEH Group. The maximum
exposure is shown gross, before the effect of mitigation through the use of master netting or collateral agreements and the use of
credit derivatives. For derivatives, the fair value shown on the balance sheet represents the current risk exposure but not the maximum
risk exposure that could arise in the future as a result of the change in value. The table also provides information regarding the credit
risk exposure of GEH Group by classifying assets according to GEH Group’s credit ratings of counterparties.
Neither past due nor impaired Unit-

linked/not
Investment Non-investment Non- subject to
$ million grade @ grade @ rated credit risk Past due * Total
2017 (AAA–BBB) (BB–C)
Equity securities – – – 14,320 – 14,320
Debt securities 28,562 29 11,278 – – 39,869
Other investments – – – 6,929 – 6,929
Debt securities 144 – – 1,036 – 1,180
Equity securities – – – 12 – 12
Debt securities 1,092 – 550 # – 1,642
Derivative financial assets 235 – – 4 – 239
Loans 430 – 867 – 62 1,359
Insurance receivables 77 – 2,595 – 29 2,701
Other debtors and interfund balances – – 3,646 84 1 3,731
Cash and cash equivalents 4,900 – 166 299 – 5,365
35,440 29 19,102 27,651 92 82,314
2016
Debt securities 26,979 176 8,779 – – 35,934
Debt securities 14 17 9 1,016 – 1,056
Equity securities – – – 7 – 7
Debt securities 590 – 485 10 – 1,085
Loans 420 – 1,180 – 9 1,609
Insurance receivables 82 – 2,493 – 30 2,605
Other debtors and interfund balances – – 2,590 50 1 2,641
31,245 211 15,655 21,700 40 68,851
(1)
@
based on public ratings assigned by external rating agencies including S&P, Moody’s, RAM and MARC.
(2)
* An ageing analysis for financial assets past due is provided below.
(3)


(h) Credit risk (continued)
Ageing analysis of financial assets past due:
Past due but not impaired

Less than 6 to 12 Over 12 Sub- Past due and
$ million 6 months months months total impaired @ Total
2017
Loans – 62 – 62 47 109
Insurance receivables 22 4 3 29 6 35
Other debtors and interfund balances 1 # # 1 5 6
Total 23 66 3 92 58 150
2016
Loans – – 9 9 4 13
Insurance receivables 20 7 3 30 6 36
Other debtors and interfund balances 1 – # 1 4 5
Total 21 7 12 40 14 54
(1) @
for assets to be classified as “past due and impaired”, contractual payments must be in arrears for more than 90 days. These receivables are not
secured by any collateral or credit enhancements.

(2)
(i) Concentration risk

An important element of managing both market and credit risks is to actively manage concentration to specific issuers, counterparties,
industry sectors, countries and currencies. Both internal and regulatory limits are put in place and monitored to manage concentration
risk. These limits are reviewed on a regular basis by the respective management committees. GEH Group’s exposures are within the
concentration limits set by the respective local regulators.
GEH Group actively manages its product mix to ensure that there is no significant concentration of credit risk.
(j) Operational and compliance risk

Operational risk is an event or action that may potentially impact partly or completely the achievement of the organisation’s objectives
resulting from inadequate or failed internal processes and systems, human factors, or external events.
Compliance risk is any event or action that may potentially impact partly or completely the achievement of the organisation’s objectives, as
a result of its failure to comply with applicable laws, regulations and standards. The applicable key compliance areas include:
– laws, regulations and rules governing insurance business and regulated financial activities undertaken by Great Eastern;
– codes of practice promoted by industry associations;
– anti-money laundering; and
– countering of financing of terrorism.
The day-to-day management of operational and compliance risk is through the maintenance of comprehensive internal controls,
supported by an infrastructure of systems and procedures to monitor processes and transactions. GMC reviews operational and
compliance issues on a GEH Group basis at its monthly meetings while local level issues are managed and monitored by the local SMTs.
GEH Group Internal Audit team reviews the systems of internal controls to assess their ongoing relevance and effectiveness, and
reports at least quarterly to the GEH Audit Committee.
(k) Technology risk

Technology risk is defined as risk related to any potential adverse outcome, damage, loss, disruption, violation, or failure arising from the
use of or reliance on computer hardware, software, electronic devices, and networks.
GEH Group adopts a risk based approach in managing technology risks relating to data loss/leakage, system security vulnerabilities,
inferior system acquisition and development, system breakdown and availability, outsourced vendor service delivery, privileged access
misuse and technology obsolescence. Key risk indicators related to technology risks are reported to the GEH Group Board on a regular
basis. Independent assessment is performed by GEH Group Internal Audit for its adequacy and effectiveness.

(I) Sensitivity analysis on financial risks
The sensitivity analysis below shows the impact on GEH Group’s net profit after tax by applying possible shocks to each key variable,
with all other variables constant. While the co-movement of key variable can significantly affect the fair values and/or amortised cost
of financial assets, but to demonstrate the impact due to changes in each key variable, the variables are changed individually.
The impact on profit after tax represents the effect caused by changes in fair value of financial assets whose fair values are recorded in
the income statement, and changes in valuation of insurance contract liabilities. The impact on equity represents the impact on profit
after tax and the effect on changes in fair value of financial assets held in Shareholders’ Funds.
Market risk sensitivity analysis
Impact on profit after tax Impact on equity

$ million 2017 2016 2017 2016
Change in variables:
(a) Interest rate
+100 basis points (438.9) (93.2) (522.2) (198.2)
–100 basis points 419.3 23.1 509.7 139.4
(b) LTRFDR
+10 basis points 43.9 17.6 43.7 17.6
–10 basis points (46.7) (18.9) (46.7) (18.9)
(c) Foreign currency
5% increase in market value of foreign currency denominated assets 108.9 24.3 187.0 90.8
5% decrease in market value of foreign currency denominated assets (108.9) (24.3) (187.0) (90.8)
(d) Equity
20% increase in market indices
STI 218.9 17.5 317.7 99.8
KLCI 3.2 0.5 42.6 12.3
20% decrease in market indices
STI (218.9) (17.5) (317.7) (99.8)
KLCI (3.2) (0.5) (42.6) (12.3)
(e) Credit
Spread +100 basis points (569.8) (277.6) (632.5) (341.9)
Spread –100 basis points 654.5 328.2 712.5 397.4
(f) Alternative investments (1)
10% increase in market value of all alternative investments 52.7 21.4 58.4 43.9
10% decrease in market value of all alternative investments (52.7) (21.4) (58.4) (43.9)
(1)
Alternative investments comprise investments in real estate, private equity, infrastructure and hedge funds.
The method for deriving sensitivity information and significant variables did not change from the previous year.

40. FINANCIAL ASSETS AND FINANCIAL LIABILITIES CLASSIFICATION

GROUP
Designated Loans and
at fair value receivables/
Held for through profit amortised Available- Insurance
$ million trading or loss cost for-sale contracts Total
2017
Cash and placements with central banks – – 19,594 – – 19,594
Singapore government treasury bills
and securities 938 – – 8,902 – 9,840
Other government treasury bills and securities 3,327 32 – 14,272 – 17,631
Placements with and loans to banks 2,457 – 29,368 17,552 – 49,377
Debt and equity securities 5,165 239 17 19,908 – 25,329
Loans and bills receivable – – 234,141 – – 234,141
Assets pledged 192 – 526 338 – 1,056
Derivative receivables 6,386 – – – – 6,386
Other assets – – 5,070 – 172 5,242
Amounts due from associates – – 143 – – 143
Financial assets 18,465 271 288,859 60,972 172 368,739
Non-financial assets 12,272
381,011
LAF investment financial assets (1) 238 7,511 8,487 56,098 – 72,334
LAF investment non-financial assets (1) 1,593
Deposits of non-bank customers – – 283,642 – – 283,642

Deposits and balances of banks – – 7,485 – – 7,485
Trading portfolio liabilities 622 – – – – 622
Derivative payables 6,454 – – – – 6,454
Other liabilities (2) – – 5,335 – 394 5,729
Debt issued – 944 31,291 – – 32,235
Financial liabilities 7,076 944 327,753 – 394 336,167
Non-financial liabilities 3,240
339,407
LAF financial liabilities (1) 366 – 8,218 – 62,230 70,814
LAF non-financial liabilities (1) 2,941
(1)
“LAF” refers to Life Assurance Fund.
(2)

40. FINANCIAL ASSETS AND FINANCIAL LIABILITIES CLASSIFICATION (continued)
GROUP
Held for through profit amortised Available- Insurance
$ million trading or loss cost for-sale contracts Total
2016
Cash and placements with central banks – – 16,559 – – 16,559
Singapore government treasury bills
and securities 590 – – 7,476 – 8,066
Other government treasury bills and securities 2,182 – – 14,117 – 16,299
Placements with and loans to banks 1,858 – 23,772 14,171 – 39,801
Debt and equity securities 4,127 628 98 18,304 – 23,157
Loans and bills receivable – – 216,830 – – 216,830
Assets pledged 269 1 465 1,054 – 1,789
Derivative receivables 7,838 – – – – 7,838
Other assets – – 4,328 – 162 4,490
Amounts due from associates – – 21 – – 21
Financial assets 16,864 629 262,073 55,122 162 334,850
347,912
LAF investment financial assets (1) 78 5,935 7,251 47,111 – 60,375
LAF investment non-financial assets (1) 1,597
Deposits of non-bank customers – – 261,486 – – 261,486

Deposits and balances of banks – – 10,740 – – 10,740
Trading portfolio liabilities 598 – – – – 598
Derivative payables 7,474 – – – – 7,474
Other liabilities (2) – – 4,949 – 386 5,335
Debt issued – 867 19,080 – – 19,947
Financial liabilities 8,072 867 296,255 – 386 305,580
Non-financial liabilities 2,700
308,280
LAF financial liabilities (1) 733 – 6,324 – 52,912 59,969
LAF non-financial liabilities (1) 1,993
(1)
“LAF” refers to Life Assurance Fund.
(2)

40. FINANCIAL ASSETS AND FINANCIAL LIABILITIES CLASSIFICATION (continued)

BANK
Held for through profit amortised Available-for-
$ million trading or loss cost sale Total
2017
Cash and placements with central banks – – 14,355 – 14,355
Singapore government treasury bills and securities 938 – – 8,151 9,089
Other government treasury bills and securities 2,744 – – 5,700 8,444
Placements with and loans to banks 2,163 – 23,267 9,326 34,756
Debt and equity securities 4,301 – 17 9,663 13,981
Loans and bills receivable – – 143,516 – 143,516
Placements with and advances to subsidiaries – – 19,974 – 19,974
Assets pledged – – – 741 741
Derivative receivables 5,117 – – – 5,117
Other assets – – 1,321 – 1,321
Amounts due from associates – – # – #
Financial assets 15,263 – 202,450 33,581 251,294
Deposits of non-bank customers – – 178,146 – 178,146
Deposits and balances of banks – – 6,085 – 6,085
Deposits and balances of subsidiaries – – 16,301 – 16,301
Trading portfolio liabilities 622 – – – 622
Derivative payables 4,989 – – – 4,989
Other liabilities (1) – – 1,761 – 1,761
Debt issued – 944 31,554 – 32,498
Financial liabilities 5,611 944 233,847 – 240,402
Non-financial liabilities 691
2016
Cash and placements with central banks – – 11,365 – 11,365
Singapore government treasury bills and securities 590 – – 7,112 7,702
Other government treasury bills and securities 1,757 – – 5,408 7,165
Placements with and loans to banks 1,829 – 18,253 11,128 31,210
Debt and equity securities 3,499 – 85 8,028 11,612
Loans and bills receivable – – 131,874 – 131,874
Placements with and advances to subsidiaries – – 8,970 – 8,970
Assets pledged – – – 936 936
Derivative receivables 6,352 – – – 6,352
Other assets – – 1,351 – 1,351
Financial assets 14,027 – 171,898 32,612 218,537
Deposits of non-bank customers – – 155,753 – 155,753
Deposits and balances of banks – – 9,090 – 9,090
Deposits and balances of subsidiaries – – 16,288 – 16,288
Trading portfolio liabilities 580 – – – 580
Derivative payables 6,008 – – – 6,008
Other liabilities (1) – – 1,706 – 1,706
Debt issued – 867 18,665 – 19,532
Financial liabilities 6,588 867 201,502 – 208,957
Non-financial liabilities 609
(1)
(2)

41. FAIR VALUES OF FINANCIAL INSTRUMENTS
41.1 VALUATION CONTROL FRAMEWORK
The Group has an established control framework with respect to the measurement of fair values, which includes formalised processes
for the review and validation of fair values independent of the businesses entering into the transactions.
The Market Risk Management (“MRM”) function within the Group Risk Management Division is responsible for market data validation,
initial model validation and ongoing performance monitoring.
The Treasury Financial Control – Valuation Control function within the Group Finance Division is responsible for the establishment
of the overall valuation control framework. This includes, but is not limited to, reviewing and recommending appropriate valuation
reserves, methodologies and adjustments, independent price testing, and identifying valuation gaps.
Valuation policies are reviewed annually by the MRM function. Any material changes to the framework require the approval of the
CEO and concurrence from the Board Risk Management Committee. Group Audit provides independent assurance on the respective
divisions’ compliance with the policy.
41.2 FAIR VALUES

Financial instruments comprise financial assets, financial liabilities and off-balance sheet financial instruments. The fair value of a
financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants. For financial assets and liabilities not carried at fair value on the financial statements, the Group has determined
that their fair values were not materially different from the carrying amounts at the reporting date. The carrying amounts and fair
values of financial instruments of the Group are described below.
Financial assets
Fair values of cash and balances with central banks, placements with banks, interest and other short term receivables are expected to
approximate their carrying value due to their short tenor or frequent re-pricing.
Securities held by the Group, comprising government securities and debt and equity securities are substantially carried at fair value on
the balance sheet.
Non-bank customer loans are carried at amortised cost on the balance sheet, net of specific and portfolio allowances. The Group deemed
the fair value of non-bank loans to approximate their carrying amount as substantially the loans are subject to frequent re-pricing.

Financial liabilities
Fair value of certain financial liabilities, which include mainly customer deposits with no stated maturity, interbank borrowings and
borrowings under repurchase agreements, are expected to approximate their carrying amount due to their short tenor. For non-bank
customer term deposits, contractual or derived cash flows are discounted at market rates as at reporting date to estimate the fair
value, which approximate the carrying value.
The fair values of the Group’s subordinated term notes and covered bonds are determined based on quoted market prices and
independent broker offer prices. For other debts issued which are usually short term, the fair value approximates the carrying value.
41.3 FAIR VALUE HIERARCHY

The Group determines the fair values of its financial assets and liabilities using various measurements. The different levels of fair value
measurements are as follows:
• Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities;
• Level 2 – inputs other than quoted prices included within Level 1 that are observable market data either directly (i.e. as prices) or
indirectly (i.e. derived from observable market data). The valuation techniques that use market parameters as inputs include, but
are not limited to, yield curves, volatilities and foreign exchange rates; and
• Level 3 – inputs for the valuation that are not based on observable market data.

41. FAIR VALUES OF FINANCIAL INSTRUMENTS (continued)

41.3 FAIR VALUE HIERARCHY (continued)
The following table summarises the Group’s assets and liabilities recorded at fair value by level of the fair value hierarchies:
2017 2016
$ million Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Recurring fair value measurements
GROUP
Financial assets measured at fair value
Placements with and loans to banks – 20,204 – 20,204 – 16,556 – 16,556
Debt and equity securities 20,795 4,107 738 25,640 21,069 2,546 239 23,854
Derivative receivables 47 6,311 28 6,386 34 7,765 39 7,838
Government treasury bills and securities 24,295 3,182 – 27,477 22,338 2,029 – 24,367
Life Assurance Fund investment assets 46,604 16,004 1,239 63,847 38,880 13,072 1,172 53,124
Total 91,741 49,808 2,005 143,554 82,321 41,968 1,450 125,739
Non-financial assets measured at fair value

Life Assurance Fund investment properties – – 1,553 1,553 – – 1,539 1,539
Total – – 1,553 1,553 – – 1,539 1,539
Financial liabilities measured at fair value

Derivative payables 70 6,370 14 6,454 91 7,348 35 7,474
Trading portfolio liabilities 622 – – 622 598 – – 598
Debt issued – 944 – 944 – 867 – 867
Life Assurance Fund financial liabilities 1 365 – 366 – 733 – 733
Total 693 7,679 14 8,386 689 8,948 35 9,672
BANK
Placements with and loans to banks – 11,681 – 11,681 – 13,484 – 13,484
Debt and equity securities 10,789 2,610 565 13,964 9,664 2,197 72 11,933
Derivative receivables 4 5,091 22 5,117 2 6,314 36 6,352
Government treasury bills and securities 15,960 2,122 – 18,082 14,107 762 – 14,869
Total 26,753 21,504 587 48,844 23,773 22,757 108 46,638
Financial liabilities measured at fair value

Derivative payables 4 4,977 8 4,989 4 5,973 31 6,008
Trading portfolio liabilities 622 – – 622 580 – – 580
Debt issued – 944 – 944 – 867 – 867
Total 626 5,921 8 6,555 584 6,840 31 7,455
During the financial year, the Group transferred financial assets from Level 2 to Level 1 as prices became observable arising from
increased market activity and from Level 1 to Level 2 due to reduced market activity.

Valuation techniques and unobservable parameters for Level 3 instruments
GROUP Fair value at

$ million 31 December 2017 Classification Valuation technique Unobservable input
Financial assets
Debt securities 130 Available-for-sale Discounted cash flows Credit spreads
Equity securities (unquoted) 608 Available-for-sale Net asset value/ Net asset value/
Multiples Earnings and ratios
Derivative receivables 28 Held for trading Option pricing model/ Standard deviation/
CDS model Credit spreads
Life Assurance Fund 1,239 Available-for-sale Net asset value Net asset value
investment assets
Total 2,005
Derivative payables 14 Held for trading Option pricing model/ Standard deviation/
CDS model Credit spreads
Total 14
Management considers that any reasonably possible changes to the unobservable input will not result in a significant financial impact.
Movements in the Group’s Level 3 financial assets and liabilities
2017 2016
Life Life
Assurance Assurance
Debt and Fund Debt and Fund
GROUP equity Derivative investment equity Derivative investment
$ million securities receivables assets Total securities receivables assets Total
Financial assets measured
at fair value
At 1 January 239 39 1,172 1,450 183 46 1,206 1,435
Purchases/transfer from associate 540 3 235 778 20 4 68 92
Settlements/disposals (30) (#) (103) (133) – (#) (98) (98)
Transfers (out of)/in to Level 3 (7) (1) (12) (1) – (19) 12 (2) – – 12
Gains/(losses) recognised in
– profit or loss (34) (2) (79) (115) (1) (11) (17) (29)
– other comprehensive income 30 # 14 44 25 (#) 13 38
At 31 December 738 28 1,239 2,005 239 39 1,172 1,450
Unrealised gains/(losses) included

in profit or loss for assets held
at the end of the period (27) 36 (9) # (13) 34 (6) 15
(1)
Relates to transfers from Level 3 to Level 2 due to use of inputs based on market observable data.
(2)
Relates to transfers from Level 2 to Level 3 due to use of inputs not based on market observable data.
(3)


Movements in the Group’s Level 3 financial assets and liabilities (continued)
GROUP
Gains/(losses) included in profit or loss are presented in the income statement as follows:
2017 2016
Net Net
interest Trading Other interest Trading Other
$ million income income income Total income income income Total
Total gains/(losses) included in profit
or loss for the year ended – (3) (112) (115) – (11) (18) (29)
Unrealised gains/(losses) included in

profit or loss for assets held at
the end of the year – 36 (36) # – 34 (19) 15
(1)
BANK
2017 2016
Debt and Debt and
equity Derivative equity Derivative
$ million securities receivables Total securities receivables Total
At 1 January 72 36 108 33 47 80
Purchases/transfer from associate 506 3 509 20 4 24
Settlements/disposals (13) – (13) – – –
Transfers in to/(out of) Level 3 1 (1) (12) (2) (11) 4 (1) – 4
– profit or loss (6) (5) (11) 12 (15) (3)
– other comprehensive income 5 – 5 3 – 3
At 31 December 565 22 587 72 36 108
Unrealised gains/(losses) included in profit or loss

for assets held at the end of the year (7) 31 24 – 30 30
Gains/(losses) included in profit or loss are presented in the income statement as follows:
2017 2016
Trading Other Trading Other
$ million income income Total income income Total
Total gains/(losses) included in profit
or loss for the year ended (4) (7) (11) (14) 11 (3)
Unrealised gains/(losses) included in profit or loss for assets

held at the end of the year 32 (8) 24 30 – 30
(1)
Relates to transfers from Level 2 to Level 3 due to use of inputs not based on market observable data.
(2)
Relates to transfers from Level 3 to Level 2 due to use of inputs based on market observable data.

Movements in the Group’s Level 3 financial assets and liabilities (continued)
GROUP BANK
2017 2016 2017 2016
Derivative Derivative Derivative Derivative
$ million payables Total payables Total payables Total payables Total
Financial liabilities measured
at fair value
At 1 January 35 35 47 47 31 31 40 40
Issues 1 1 6 6 1 1 7 7
Settlements/disposals – – (1) (1) – – (#) (#)
Transfers out of Level 3 (25) (1) (25) – – (25) (1) (25) – –
Losses/(gains) recognised in
– profit or loss 3 3 (17) (17) 1 1 (16) (16)
– other comprehensive income # # (#) (#) – – – –
At 31 December 14 14 35 35 8 8 31 31
Unrealised losses included in

profit or loss for liabilities
held at the end of the year (34) (34) (24) (24) (33) (33) (24) (24)
(1)
Relates to transfers from Level 3 to Level 1 and 2 due to use of inputs based on market observable data.
(2)
Gains/(losses) included in profit or loss are presented in the income statements as follows:
GROUP BANK
2017 2016 2017 2016
Trading Trading Trading Trading
$ million income Total income Total income Total income Total
Total (losses)/gains included in profit
or loss for the year ended (3) (3) 17 17 (1) (1) 16 16
Unrealised losses included in profit

or loss for liabilities held at the
end of the year (34) (34) (24) (24) (33) (33) (24) (24)
Movements in the Group’s Level 3 non-financial assets
GROUP
2017 2016
Life Assurance Life Assurance
Fund investment Fund investment
$ million properties Total properties Total
Non-financial assets measured at fair value
At 1 January 1,539 1,539 1,568 1,568
Purchases # # – –
Sales (1) (1) (9) (9)
– profit or loss 10 10 (16) (16)
– other comprehensive income 5 5 (4) (4)
At 31 December 1,553 1,553 1,539 1,539
(1)

42. OFFSETTING FINANCIAL ASSETS AND FINANCIAL LIABILITIES

The Group enters into master netting arrangements with counterparties. The credit risk associated with favourable contracts is
reduced by the master netting arrangement to the extent that if an event of default occurs, all amounts with the counterparty are
settled on a net basis. These arrangements do not qualify for net presentation on the balance sheet as the right to offset is enforceable
only on the occurrence of future events such as default or other credit events.
The disclosures set out in the tables below pertain to financial assets and financial liabilities that are not presented net in the
Group’s balance sheet but are subject to enforceable master netting agreement or similar arrangement that covers similar financial
instruments. The disclosures enable the evaluation on the potential effect of netting arrangements as well as provide additional
information on how such credit risk is mitigated.
Related amounts not offset
on balance sheet
Financial Gross
instruments recognised
Carrying not in scope financial Net
amounts on of offsetting instruments Financial Cash Non-cash amounts
Types of financial assets/liabilities balance sheet disclosures in scope instruments collateral collateral in scope
GROUP ($ million) (A) (B) (1) (A – B = C + D + E + F) (2) (C) (3) (D) (E) (F)
2017
Financial assets
Derivative receivables 6,386 3,041 3,345 2,101 307 5 932
Reverse repurchase agreements 4,508 (4) 1,147 3,361 3,351 – – 10
Securities borrowings 28 (5) – 28 25 – – 3
Total 10,922 4,188 6,734 5,477 307 5 945
Derivative payables 6,454 2,596 3,858 2,101 814 – 943
Repurchase agreements 476 (6) 297 179 179 – – –
Securities lendings 9 (7) 9 – – – – –
Total 6,939 2,902 4,037 2,280 814 – 943
2016
Financial assets
Derivative receivables 7,838 2,899 4,939 3,228 633 33 1,045
Reverse repurchase agreements 4,974 (4) 451 4,523 4,483 – – 40
Total 12,831 3,350 9,481 7,728 633 33 1,087
Derivative payables 7,474 2,076 5,398 3,228 1,044 – 1,126
Repurchase agreements 1,194 (6) 357 837 837 – – –
Securities lendings 11 (7) 11 – – – – –
Total 8,679 2,444 6,235 4,065 1,044 – 1,126
(1)
Represents financial instruments not subject to master netting agreements.
(2)
Represents financial instruments subject to master netting agreements.
(3)
Represents financial instruments that do not meet offsetting criteria.
(4)
Reverse repurchase agreements shown above are the aggregate of transactions recorded in separate line items on the balance sheet, namely
placements with central banks, loans to banks and non-bank customers and other assets. These transactions are measured either at fair value or
amortised cost.
(5)
Cash collateral placed under securities borrowings are presented under placements with and loans to banks and other assets on the balance sheet,
and are measured at amortised cost.
(6)
Repurchase agreements shown above are the aggregate of transactions recorded in separate line items on the balance sheet, namely deposits of
banks and non-bank customers and other liabilities, and are measured at amortised cost.
(7)
Cash collateral placed under securities lendings are presented under other liabilities, and are measured at amortised cost.

42. OFFSETTING FINANCIAL ASSETS AND FINANCIAL LIABILITIES (continued)
Related amounts not offset
on balance sheet
Financial Gross
instruments recognised
Carrying not in scope financial Net
amounts on of offsetting instruments in Financial Cash Non-cash amounts in
Types of financial assets/liabilities balance sheet disclosures scope instruments collateral collateral scope
BANK ($ million) (A) (B) (1) (A – B = C + D + E + F) (2) (C) (3) (D) (E) (F)
2017
Financial assets
Derivative receivables 5,117 2,059 3,058 1,997 206 5 850
Total 8,873 2,445 6,428 5,355 206 5 862
Repurchase agreements 167 (6) – 167 167 – – –
Total 5,156 1,669 3,487 2,165 552 – 770
2016
Financial assets
Derivative receivables 6,352 2,095 4,257 2,868 313 33 1,043
Securities borrowings 11 (5) – 11 11 – – –
Total 11,290 2,546 8,744 7,315 313 33 1,083
Repurchase agreements 833 (6) – 833 833 – – –
Total 6,841 1,423 5,418 3,701 844 – 873
(1)
Represents financial instruments not subject to master netting agreements.
(2)
Represents financial instruments subject to master netting agreements.
(3)
Represents financial instruments that do not meet offsetting criteria.
(4)
Reverse repurchase agreements shown above are the aggregate of transactions recorded in separate line items on the balance sheet, namely
placements with central banks, loans to banks and non-bank customers and other assets. These transactions are measured either at fair value or
amortised cost.
(5)
Cash collateral placed under securities borrowings are presented under placements with and loans to banks on the balance sheet, and are measured
at amortised cost.
(6)
Repurchase agreements shown above are the aggregate of transactions recorded in separate line items on the balance sheet, namely deposits of
banks and non-bank customers and other liabilities, and are measured at amortised cost.

43. CONTINGENT LIABILITIES

The Group conducts businesses involving acceptances, guarantees, documentary credits and other similar transactions. Acceptances
are undertakings by the Group to pay on receipt of bills of exchange drawn. The Group issues guarantees on the performance of
customers to third parties. Documentary credits commit the Group to make payments to third parties on presentation of stipulated
documents. As the Group will only be required to meet these obligations in the event of customer’s default, the cash requirements of
these instruments are expected to be considerably below their nominal contractual amounts.
GROUP BANK
2017 2016 2017 2016
$’000 $’000 $’000 $’000
Guarantees and standby letters of credit:
Term to maturity of one year or less 3,935,631 4,063,677 3,129,357 3,264,335
Term to maturity of more than one year 2,195,691 1,930,330 1,369,407 1,326,100
6,131,322 5,994,007 4,498,764 4,590,435
Acceptances and endorsements 1,282,660 1,300,489 672,607 634,404
Documentary credits and other short term trade-related transactions 3,089,865 3,850,565 2,111,154 3,048,191
10,503,847 11,145,061 7,282,525 8,273,030

Agriculture, mining and quarrying 83,448 209,781 201,138 257,241
Manufacturing 1,748,009 1,840,893 762,184 889,064
Building and construction 1,623,199 1,466,296 754,178 832,285
Transport, storage and communication 624,056 451,106 481,980 312,386
Financial institutions, investment and holding companies 485,481 492,558 417,549 580,727
Professionals and individuals 302,264 294,233 57,708 62,404
Others 1,705,857 928,931 1,481,736 622,503
10,503,847 11,145,061 7,282,525 8,273,030

Singapore 5,818,712 6,209,345 5,941,579 6,447,741
Malaysia 1,261,392 1,190,586 10,005 13,491
Indonesia 1,154,550 1,195,478 – –
Greater China 1,842,263 2,208,740 893,818 1,442,359
Rest of the World 126,275 94,820 126,275 94,820
10,503,847 11,145,061 7,282,525 8,273,030
Contingent liabilities analysed by geography is based on the country where the transactions are recorded.

44. COMMITMENTS
Commitments comprise mainly agreements to provide credit facilities to customers. Such credit facilities (cancellable and non-cancellable)
can either be made for a fixed period, or have no specific maturity.
GROUP BANK
2017 2016 2017 2016
$’000 $’000 $’000 $’000
44.1 CREDIT COMMITMENTS
Undrawn credit facilities:
Term to maturity of one year or less 111,902,150 102,378,264 48,522,969 40,663,317
Term to maturity of more than one year 16,946,051 16,773,901 30,701,981 14,462,230
128,848,201 119,152,165 79,224,950 55,125,547
44.2 OTHER COMMITMENTS

Operating lease (non-cancellable) commitments:
Within 1 year 80,904 48,715 23,813 23,594
After 1 year but within 5 years 133,927 106,929 30,250 23,479
Over 5 years 6,608 4,026 4,218 –
221,439 159,670 58,281 47,073
Capital commitment authorised and contracted 146,938 180,393 90,714 116,597
Forward deposits and assets purchase 1,166,647 472,715 1,127,198 271,860
1,535,024 812,778 1,276,193 435,530
44.3 TOTAL COMMITMENTS 130,383,225 119,964,943 80,501,143 55,561,077
44.4 CREDIT COMMITMENTS ANALYSED BY INDUSTRY

Agriculture, mining and quarrying 1,259,038 1,361,883 455,904 641,966
Manufacturing 8,531,490 8,576,265 3,986,760 3,413,712
Building and construction 14,893,565 12,414,720 11,642,335 9,376,531
Transport, storage and communication 3,158,736 3,083,792 2,634,424 2,440,116
Professionals and individuals 42,855,168 41,906,660 12,493,867 13,019,005
Others 6,935,742 6,813,261 3,786,547 3,275,058
128,848,201 119,152,165 79,224,950 55,125,547
44.5 CREDIT COMMITMENTS ANALYSED BY GEOGRAPHY

Singapore 97,873,143 89,972,832 68,973,504 46,517,627
Malaysia 7,175,970 7,010,061 305,559 254,752
Indonesia 3,891,172 4,753,597 – –
Greater China 15,969,853 13,847,436 5,987,707 4,754,145
Rest of the World 1,832,831 1,913,125 1,846,343 1,937,339
128,848,201 119,152,165 79,224,950 55,125,547
Credit commitments analysed by geography is based on the country where the transactions are recorded.

45. UNCONSOLIDATED STRUCTURED ENTITIES

Unconsolidated structured entities refer to structured entities that are not controlled by the Group. The Group’s transactions in these
structured entities are for investment opportunities as well as to facilitate client transactions. The Group’s maximum exposure to loss
is primarily limited to the carrying amount on its balance sheet and loan and capital commitments to these structured entities.
The following table summarises the carrying amount of the assets and liabilities recognised in the Group’s financial statements relating
to the interests in unconsolidated structured entities undertaken by business segments.
Global
investment
GROUP ($million) banking Insurance Others Total
2017
Available-for-sale investments 59 120 # 179
Other assets – 5 – 5
Total assets 59 125 # 184
Other liabilities – 1 # 1
Total liabilities – 1 # 1
Other commitments
Loan and capital commitments authorised and contracted (1) 29 – – 29
Income earned from sponsored structured entities (2) – 47 6 53
Assets of structured entities 490 5,008 1,128 6,626
2016
Available-for-sale investments 54 134 # 188
Other assets – 5 – 5
Total assets 54 139 # 193
Other liabilities – # # #
Total liabilities – # # #
Other commitments
Loan and capital commitments authorised and contracted (1) 43 – – 43
Income earned from sponsored structured entities (2) – 41 6 47
Assets of structured entities 476 4,091 594 5,161

(1)
These were also included in the Group’s capital commitment authorised and contracted in Note 44.
(2)
The income earned relates primarily to management fee, interest income or fair value gains or losses recognised by the Group arising from the
interests held by the Group in the unconsolidated investment funds.
(3)
The amount of assets transferred to sponsored entities during 2017 and 2016 were not significant.

46. FINANCIAL ASSETS TRANSFERRED
46.1 ASSETS PLEDGED
GROUP BANK
2017 2016 2017 2016
$’000 $’000 $’000 $’000
Government treasury bills and securities (Note 24)
– Singapore – – 543,483 –
– Others 5,878 2,302 5,878 2,302
Placements with and loans to banks (Note 25) 195,160 527,285 191,991 527,285
Loans and bills receivable (Note 26) 526,414 464,746 – –
Debt securities (Note 30) 328,087 794,582 – 406,343
1,055,539 1,788,915 741,352 935,930
Repo balances for assets pledged 475,454 1,192,790 687,394 831,394
The fair value of financial assets accepted as collateral, which the Group is permitted to sell or re-pledge in the absence of default
is $3,929.4 million (2016: $4,760.3 million), of which $198.5 million (2016: $174.2 million) have been sold or re-pledged. The Group is
obliged to return equivalent assets.
Transactions are conducted under terms and conditions that are usual and customary to standard securities borrowing and lending
activities.
46.2 ASSETS ASSIGNED AS SECURITY FOR COVERED BONDS ISSUED (NOTE 21.5)
Pursuant to the Bank’s Global Covered Bond Programme, selected pools of Singapore home loans originated by the Bank have been
assigned to a bankruptcy-remote structured entity, Red Sail Pte. Ltd. (Note 34.7). These home loans continue to be recognised on the
Bank’s balance sheet as the Bank remains exposed to the risks and rewards associated with them.
As at 31 December 2017, the carrying value of the covered bonds in issue was $1,584 million (2016: Nil), while the carrying value of
assets assigned was $4,736 million (2016: Nil). The difference in values is attributable to an intended over-collateralisation required to
maintain the credit ratings of the covered bonds in issue, and additional assets assigned to facilitate future issuances.
47. ASSETS HELD FOR SALE

The following assets were reclassified as held for sale and are presented at their carrying amount. The Group did not recognise any
impairment loss for a write-down of the assets held for sale to fair value less costs to sell.
GROUP BANK
2017 2016 2017 2016
$’000 $’000 $’000 $’000
Associates (Note 47.1) 32,843 – – –
Investment properties (Note 47.2) 5,716 28,035 1,590 1,150
38,559 28,035 1,590 1,150
47.1 ASSOCIATES
In March 2017, the Bank announced that its wholly-owned subsidiary, OCBC Wing Hang Bank Limited (“OWHB”), entered into a Share
Sale Agreement to sell its 33.33% stake comprising 140 million ordinary shares (“Sale Shares”) in the capital of Hong Kong Life Insurance
Limited (“Hong Kong Life”). The consideration for the Sale Shares is HKD2,366.7 million (approximately S$404.8 million). The completion
of the Sale Shares under the Share Sale Agreement will be conditional upon regulatory approvals.
47.2 INVESTMENT PROPERTIES

These comprise properties which the Group is disposing of, subject to terms that are usual and customary in the completion of
the sale. The transactions are not expected to have a material impact on the Group’s net earnings and net assets for the current
financial year.

48. MINIMUM LEASE RENTAL RECEIVABLE

The future minimum lease rental receivable under non-cancellable operating leases by remaining period to lease expiry is as follows:
GROUP BANK
2017 2016 2017 2016
$’000 $’000 $’000 $’000
Within 1 year 50,365 54,234 18,937 18,788
After 1 year but within 5 years 43,643 46,208 17,128 22,527
Over 5 years 75 202 – –
94,083 100,644 36,065 41,315
The Group leases retail, commercial and hotel space to third parties with varying terms including variable rent, escalation clauses and
renewal rights.
49. RELATED PARTY TRANSACTIONS

Loans and deposits transactions with related parties arise from the ordinary course of business and are not treated any differently from
loans and deposits transactions with other customers of the Group. Credit facilities granted are subject to the same credit evaluation,
approval, monitoring and reporting processes. All transactions with related parties are conducted on commercial terms.
49.1
Related party balances at the balance sheet date and transactions during the financial year were as follows:
Life
Key assurance
GROUP ($ million) Associates Directors management fund
(a) Loans, placements and other receivables
At 1 January 2017 21 18 22 –
Net change 532 (7) (#) 6
At 31 December 2017 553 11 22 6
(b) Deposits, borrowings and other payables

At 1 January 2017 206 55 50 865
Net change 14 2 # 538
At 31 December 2017 220 57 50 1,403
(c) Off-balance sheet credit facilities (1)

At 1 January 2017 – 7 – 1
Net change – (3) 5 –
At 31 December 2017 – 4 5 1
(d) Income statement transactions

Interest income 5 # # #
Interest expense 2 1 # 9
Rental income – – – 2
Fee and commission and other income – # 2 207
Rental and other expenses 11 # # 12

Interest income 1 # # #
Interest expense 2 1 # 10
Rental income – – – 1
Fee and commission and other income – 1 # 178
Rental and other expenses 4 1 # 8
(1)
Off-balance sheet credit facilities refer to transaction-related and trade-related contingencies and commitments.
(2)

49. RELATED PARTY TRANSACTIONS (continued)
Life
Key assurance
BANK ($ million) Subsidiaries Associates Directors management fund
(a) Loans, placements and other receivables
At 1 January 2017 9,303 – 12 22 –
Net change 11,205 410 (1) (1) 6
At 31 December 2017 20,508 410 11 21 6
(b) Deposits, borrowings and other payables

At 1 January 2017 17,921 127 32 47 412
Net change (120) (24) 9 # 296
At 31 December 2017 17,801 103 41 47 708
(c) Off-balance sheet credit facilities (1)

At 1 January 2017 1,262 – # – 1
Net change 17,310 – – – (#)
At 31 December 2017 18,572 – # – 1
(d) Income statement transactions

Interest income 245 # # # #
Interest expense 338 1 # # 2
Rental income 23 – – – –
Fee and commission and other income 45 – # # 159
Rental and other expenses 298 11 # – 2

Interest income 76 – # # #
Interest expense 201 2 # # 1
Rental income 24 – – – –
Fee and commission and other income 38 – # # 133
Rental and other expenses 290 4 # # #
(1)
Off-balance sheet credit facilities refer to transaction-related and trade-related contingencies and commitments.
(2)
49.2 KEY MANAGEMENT PERSONNEL COMPENSATION
BANK
2017 2016
$ million $ million
Key management personnel compensation is as follows:
Short-term employee benefits 38 40
Share-based benefits 12 15
50 55
Certain performance-related payments to key management personnel of the Bank in relation to the performance year 2017 included in
the above table are subject to the approval of the Remuneration Committee.

50. FULL CONVERGENCE WITH INTERNATIONAL FINANCIAL REPORTING

STANDARDS AND ADOPTION OF NEW ACCOUNTING STANDARDS
AND INTERPRETATIONS
50.1 APPLICABLE TO FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDING 31 DECEMBER 2018
In 2014, the Accounting Standards Council (“ASC”) announced that Singapore-incorporated companies that have issued, or are in the
process of issuing, equity or debt instruments for trading on the Singapore Exchange, will apply a new financial reporting framework
identical to the International Financial Reporting Standards (“IFRS”) with effect from annual periods beginning on or after 1 January
2018, with the objective to achieve full convergence with IFRS. Subsequently, the ASC issued Singapore Financial Reporting Standards
(International) (“SFRS(I)”) in 2017 for local implementation. SFRS(I) are equivalent of the International Financial Reporting Standards.
The Group’s financial statements for the financial year ending 31 December 2018 will be prepared in accordance with SFRS(I). On initial
implementation of SFRS(I), the Group will be required to apply the specific transition requirements in SFRS(I) 1 First-time Adoption of
Singapore Financial Reporting Standards (International). In this regard, the date of transition to SFRS(I) for the Group is 1 January 2017,
unless otherwise stated.
In addition, the following new SFRS(I)s, amendments to and interpretations of SFRS(I) will also be applied:
FRS Title
SFRS(I) 9 Financial Instruments
SFRS(I) 15 Revenue from Contracts with Customers
SFRS(I) 1-28 (Amendments) Measuring an Associate or Joint Venture at Fair Value
SFRS(I) 1-40 (Amendments) Investment Property: Transfers of Investment Property
SFRS(I) 2 (Amendments) Share-based Payment: Classification and Measurement of Share-based Payment Transactions
SFRS(I) 4 (Amendments) Insurance Contracts: Applying SFRS(I) 9 Financial Instruments with SFRS(I) 4 Insurance Contracts
SFRS(I) INT 22 Foreign Currency Transactions and Advance Consideration
Based on the Group’s preliminary analysis, the initial application of the above standards (including their consequential amendments) and
interpretations are not expected to have a significant impact on the Group’s financial statements, except for SFRS(I) 1 and SFRS(I) 9.
(I) SFRS(I) 1
SFRS(I) 1 generally requires that the Group applies SFRS(I) on a retrospective basis, as if the accounting standards had always been
applied. If there are changes to accounting policies arising from new or amended standards effective in 2018, restatement of
comparatives may be required as SFRS(I) 1 requires both the opening balance sheet and comparative information to be prepared using
the new accounting policies.
To provide transitional relief from full retrospective application for a first-time adopter, SFRS(I) 1 provides certain mandatory exceptions
and optional exemptions from retrospective application, which are often different from the transitional provisions of individual SFRS(I)s.
Except as described below, the Group does not expect the application of the mandatory exceptions and the optional exemptions in
SFRS(I) 1 to have any significant impact on the financial statements.
Foreign currency translation reserves (“FCTR”)

The Group plans to elect the optional exemption in SFRS(I) 1 to reset its cumulative FCTR for all foreign operations to nil at the
date of transition, as permitted by the accounting standards. The cumulative FCTR of $0.9 billion recognised by the Group (Bank:
$0.1 billion), which was determined in accordance with the Singapore Financial Reporting Standards, will be reclassified from FCTR
to Unappropriated Profit within Revenue Reserves. After the date of transition, any gain or loss on disposal of any foreign operations
will exclude translation differences that arose before the date of transition.

AND INTERPRETATIONS (continued)
50.1 APPLICABLE TO FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDING 31 DECEMBER 2018 (continued)
(II) SFRS(I) 9
With effect from 1 January 2018, SFRS(I) 9 supersedes FRS 39 Financial Instruments: Recognition and Measurement. SFRS(I) 9 prescribes
new accounting requirements for classification and measurement of financial instruments, a new expected credit loss model of
measuring impairment of financial assets, and new general hedge accounting requirements.
The date of transition to SFRS(I) 9 is 1 January 2018, as the Group plans to apply the exemptions granted under SFRS(I) 1 and do not
restate the financial information of its comparative period in respect of financial instruments. A first-time adopter that elects to apply
the exemption will recognise the cumulative effect of adopting SFRS(I) 9 in Revenue Reserves as at 1 January 2018.
The adoption of SFRS(I) 9 is generally applied retrospectively, except as described below:

• The Group will make the following assessments based on the basis of facts and circumstances that existed as at 1 January 2018,
which is the date of transition to SFRS(I) 9:
– The determination of the business model within which financial assets are held.
– The determination of whether the contractual terms of a financial asset give rise to cash flows that are solely payments of
principal and interest on the principal outstanding.
– The designation of an investment in equity instruments that is not held for trading as at fair value through other
comprehensive income (“FVOCI”).
– The designation and revocation of previous designations of certain financial assets and financial liabilities as measured at fair
value through profit or loss (“FVTPL”).
• The Group plans to apply new hedge accounting requirements prospectively. All hedging relationships designated under the
existing accounting standard as at 31 December 2017 that meet the criteria for hedge accounting under SFRS(I) 9 as at 1 January
2018 will be regarded as continuing hedging relationships.
The information below reflects the Group’s expectation of the implications arising from changes in the accounting treatment.
However, the actual tax effect may change when the transition adjustments are finalised. The Group does not expect the adoption of
SFRS(I) 9 to have a significant impact on its CET1 Capital.
(i) Classification and measurement: financial assets

SFRS(I) 9 introduces a principle-based approach to the classification of financial assets. Classification and measurement of financial
assets are determined based on the contractual cash flow characteristics of the financial assets and the business model associated
with the financial assets.
A debt financial asset is measured at amortised cost if it meets both of the following conditions and is not designated at FVTPL:
• it is held within a business model whose objective is to hold the asset until maturity to collect contractual cash flows; and
• its contractual terms give rise to cash flows that are solely payments of principal and interest on the principal outstanding.
A debt financial asset is measured at FVOCI if it meets both of the following conditions and is not designated at FVTPL:
• it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling the financial
asset; and
• its contractual terms give rise to cash flows that are solely payments of principal and interest on the principal outstanding.
Equity instruments held for trading are classified at FVTPL. Equity instruments that are not held for trading are either classified at
FVTPL or FVOCI, subject to an irrevocable election.


(II) SFRS(I) 9 (continued)
(i) Classification and measurement: financial assets (continued)
Except for transition impact on Great Eastern Holdings Limited and its subsidiaries (“GEH Group”), the application of SFRS(I) 9 is
expected to result in reclassification of certain financial assets recognised by OCBC Group and OCBC Bank as at the date of transition,
as described below:
• Approximately $0.4 billion of government treasury bills and debt securities held by the Group (Bank: $0.4 billion) are expected to be
reclassified from available-for-sale (“AFS”) to amortised cost, as these are held within the business model to collect contractual cash
flows and these cash flows consist solely of payments of principal and interest on principal outstanding;
• Approximately $0.3 billion of loans to customers originated by the Group (Bank: $0.2 billion) are expected to be reclassified from
amortised cost to FVTPL, as the contractual cash flows do not represent solely payments of principal and interest on principal
outstanding;
• Approximately $0.4 billion of equity securities held by the Group (Bank: $0.4 billion) are expected to be reclassified from AFS to
FVTPL. Approximately $0.3 billion of equity securities held by the Group (Bank: $0.2 billion) are expected to be reclassified from AFS
to FVOCI; and
• Approximately $0.1 billion of debt securities recognised by the Group are expected to be reclassified from AFS to FVTPL as the
contractual cash flows do not represent solely payments of principal and interest on principal outstanding. The impact on the Bank
is not expected to be material.
For GEH Group, application of SFRS(I) 9 is expected to result in the following reclassification:
• GEH Group intends to make an election to measure its currently AFS debt securities amounting to approximately $32.9 billion at
FVTPL as doing so eliminates or significantly reduces accounting mismatch;
• AFS debt securities where cash flows do not represent solely payments of principal and interest amounting to approximately
$0.9 billion will be reclassified to FVTPL;
• GEH Group intends to elect to measure its AFS equity securities amounting to approximately $2.2 billion at FVOCI, and AFS equity
securities amounting to approximately $12.1 billion at FVTPL; and
• For collective investment schemes (“CIS”), GEH Group intends to continue to measure CIS currently measured at FVTPL, amounting
to $2.4 billion, at FVTPL. GEH Group intends to measure AFS collective investment schemes amounting to $6.9 billion at FVTPL.
(ii) Impairment
SFRS(I) 9 replaces the existing FRS 39 loan provisioning requirements as modified by MAS Notice 612 with a forward-looking expected
credit loss (“ECL”) model.
Scope
Under SFRS(I) 9, the expected loss model is applied to financial assets classified at amortised cost or FVOCI, and certain off-balance
sheet loan commitments and financial guarantees which were previously provided for under FRS 37 Provisions, Contingent Liabilities
and Contingent Assets.

(ii) Impairment (continued)
Expected credit loss impairment model
Under SFRS(I) 9, credit loss allowances will be measured on each reporting date according to a three-stage expected credit loss
impairment model:
• Stage 1 – On initial recognition, expected credit loss will be that resulting from default events that are possible over the next
12 months (“12-month ECL”).
• Stage 2 – Following a significant increase in credit risk of the financial assets since its initial recognition, the credit loss allowance
will be that which results from all possible default events over the expected life of the asset (“Lifetime ECL”).
• Stage 3 – When a financial asset exhibits objective evidence of impairment and is considered to be credit-impaired, a loss allowance
will be the full lifetime expected credit loss.
Consistent with FRS 39, loans are written off against impairment allowances when all feasible recovery actions have been exhausted or
when the recovery prospects are considered remote. This does not significantly change on adoption of SFRS(I) 9.
Measurement
An ECL estimate will be produced for all relevant instruments established on probability-weighted forward-looking economic scenarios.
The measurement of ECL will primarily be calculated based on the probability of default (“PD”), loss given default (“LGD”), and exposure
at default (“EAD”). These parameters are derived from internal rating models after adjusting them to be un-biased and forward looking.
Where internal rating models are not available, such estimates are based on comparable internal rating models after adjusting for
portfolio differences.
12-month ECL will be based on a maximum of 12-month PD while Lifetime ECL will be based on the remaining lifetime of the
instrument. LGD reflects the expected loss value given default, after taking into account the effect of collateral. EAD reflects the
expected exposure at default, after taking into account of any expected repayments and/or drawdown. 12-month ECL and Lifetime
ECL will be the respective discounted value (using the effective interest rate) of 12-month PD and Lifetime PD, multiplied with LGD
and EAD.
Movement between stages

Movements between Stage 1 and Stage 2 are based on whether an instrument’s credit risk as at the reporting date has increased
significantly since its initial recognition.
In accordance with SFRS(I) 9, financial assets are classified in Stage 2 where there is a significant increase in credit risk since initial
recognition, where loss allowance will be measured using lifetime ECL.
The Group has considered both qualitative and quantitative parameters in the assessment of significant increase in credit risk. These
include the following:
1. The Group has established thresholds for significant increases in credit risk based on both a relative and absolute change in lifetime
PD relative to initial recognition.
2. The Group will also conduct qualitative assessment to ascertain if there has been significant increase in credit risk.
3. The Group plans to use 30 days past due as an indication of significant increase in credit risk.
Movements between Stage 2 and Stage 3 are based on whether financial assets are credit-impaired as at the reporting date. The
determination of whether a financial asset is credit-impaired under SFRS(I) 9 will be based on objective evidence of impairment,
similar to FRS 39.
The assessments for significant increase in credit risk since initial recognition and credit-impairment are performed independently as
at each reporting period. Assets can move in both directions through the stages of the impairment model. After a financial asset has
migrated to Stage 2, if it is no longer considered that credit risk has significantly increased relative to initial recognition in a subsequent
reporting period, it will move back to Stage 1. Similarly, an asset that is in Stage 3 will move back to Stage 2 if it is no longer considered
to be credit-impaired.


(ii) Impairment (continued)
Regulatory framework
Under the revised MAS 612 requirement, the Group is required to maintain a minimum regulatory loss allowance (“MRLA”) of 1% of the
gross carrying amount of selected credit exposures, net of collaterals. Where the accounting loss allowance computed under SFRS(I) 9
falls below the MRLA, the Group shall maintain the shortfall in a non-distributable regulatory loss allowance reserve (“RLAR”) account
through the appropriation of Revenue Reserves. Where the aggregated accounting loss allowance and RLAR exceeds the MRLA, the
Group may transfer the excess amount in the RLAR to Revenue Reserves.
Upon transition to SFRS(I) 9, the Group expects the accounting loss allowance to be in the range of 70% to 80% of the MRLA, with the
RLAR at 20% to 30%.
The Group is currently finalising its testing of the expected credit loss model and the final transition adjustments may be different.
(iii) Hedge accounting

SFRS(I) 9 provides new requirements on hedge accounting which align hedge accounting more closely with risk management. The
standard establishes a more principle-based approach to hedge accounting and addresses inconsistencies and weaknesses in the hedge
accounting model in FRS 39. The Group is adopting an accounting policy choice in applying the hedge accounting requirements of
SFRS(I) 9, and does not expect to have any significant impact on the financial statements.
50.2 APPLICABLE TO FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDING 31 DECEMBER 2019 AND THEREAFTER
As of the balance sheet date, certain new standards, amendments and interpretations to existing accounting standards have been
published. The Group has not adopted the following relevant new/revised financial reporting standards and interpretations that have
been issued but not yet effective.
Effective for financial year

FRS Title beginning on or after
SFRS(I) 9 (Amendments) Prepayment Features with Negative Compensation 1 January 2019
SFRS(I) 16 Leases 1 January 2019
SFRS(I) 1-28 Long-term Interests in Associates and Joint Ventures 1 January 2019
SFRS(I) INT 23 Uncertainty over Income Tax Treatments 1 January 2019
SFRS(I) 10, Sale or Contribution of Assets between an Investor and its To be determined
SFRS(I) 1-28 (Amendments) Associate or Joint Venture
The Group is still in the process of assessing the impact of new SFRS(I)s, amendments to and interpretations of SFRS(I)s on the
financial statements.

GROUP’S MAJOR PROPERTIES
As at 31 December 2017
Effective Gross Carrying Market

stake floor area value value (1)
Purpose (%) (sq ft) S$'000 S$'000
Singapore
65 Chulia Street, OCBC Centre Office 100 993,089 21,681 1,050,000
63 Chulia Street, OCBC Centre East Office 100 242,385 94,122 365,800
18 Church Street, OCBC Centre South Office 100 118,909 68,244 162,660
63 Market Street, Bank Of Singapore Centre Office 100 248,996 276,983 450,000
11 Tampines Central 1 Office 100 115,824 54,583 104,000
31 Tampines Avenue 4 Office 100 97,572 41,545 80,000
105 Cecil Street, #01-00, #02-01 to 04, #04-01 to 04, #14-01
to 04, #15-01 to 04, #17-01 to 04 The Octagon Building Office 100 34,563 (2) 31,531 72,000
260 Tanjong Pagar Road Office 100 44,940 7,964 62,500
101 Cecil Street #01-01/02, Tong Eng Building Office 100 16,146 (2) 1,220 34,500
460 North Bridge Road Office 100 26,576 2,330 30,500
70 Loyang Drive Office 100 134,287 124,227 177,000
Block 9 & 13 Tanjong Rhu Road, The Waterside Residential 100 251,889 36,040 241,600
2 Mt Elizabeth Link Residential 100 104,377 19,293 190,000
6, 6A to 6H, 6J to 6N, 6P to 6U Chancery Hill Road,
The Compass at Chancery Residential 100 54,739 11,673 57,000
257 River Valley Road, #02-00 to #10-00, Valley Lodge Residential 100 23,920 2,384 18,810
277 Orchard Road, Orchardgateway Retail and Hotel 100 535,698 526,237 954,200
1,320,057 4,050,570
Malaysia
18 Jalan Tun Perak, Kuala Lumpur, Menara OCBC Office 100 243,262 17,388 39,655
Indonesia
Jl Dr. Satrio, Casablanca, Jakarta, Bank NISP Tower Office 85 362,313 5,626 20,239
Greater China
1155 Yuanshen Road, Pudong Shanghai, 华侨银行大厦 Office 100 249,161 167,350 217,522
161-169 Queen's Road Central, Hong Kong SAR Office 100 95,169 201,112 304,450
368,462 521,972
Other properties in
Singapore 82,814 503,630
Malaysia 13,788 88,833
Indonesia 48,130 88,244
Greater China 1,201,889 1,649,868
Other Asia Pacific 11,833 78,336
Rest of the World 1,654 16,861
1,360,108 2,425,772
Total (3) 3,071,641 7,058,208
(1)
Valuations were made by independent firms of professional valuers.
(2)
Refers to strata floor area.
(3)
Does not include properties held by GEH Group's insurance subsidiaries under their life assurance funds.

SHAREHOLDING STATISTICS
As at 7 March 2018
CLASS OF SHARES
Ordinary Shares
VOTING RIGHTS
One vote per share (other than treasury shares and subsidiary holdings, which are treated as having no voting rights)
DISTRIBUTION OF SHAREHOLDERS
Number of Number of
Size of Holdings Shareholders % Shares Held %
1 – 99 8,670 9.97 330,788 0.01
100 – 1,000 18,852 21.69 10,476,413 0.25
1,001 – 10,000 44,945 51.71 160,199,810 3.82
10,001 – 1,000,000 14,305 16.46 672,180,952 16.03
1,000,001 and above 146 0.17 3,350,596,498 79.89
Total 86,918 100.00 4,193,784,461 100.00
Number of issued shares (including treasury shares): 4,193,784,461

Number of treasury shares held: 8,780,033
Number of subsidiary holdings held: Nil
Percentage of the aggregate number of treasury shares and subsidiary holdings held against the total number of issued shares: 0.21%
Note:
“Subsidiary holdings” is defined in the Listing Manual to mean shares referred to in Sections 21(4), 21(4B), 21(6A) and 21(6C) of the Companies Act,
Chapter 50.
TWENTY LARGEST SHAREHOLDERS

Shareholders Number of Shares Held %*
1. Citibank Nominees Singapore Pte Ltd 666,538,713 15.93
2. Selat Pte Limited 462,024,552 11.04
3. DBS Nominees Pte Ltd 445,007,899 10.63
4. DBSN Services Pte Ltd 257,641,981 6.16
5. HSBC (Singapore) Nominees Pte Ltd 230,073,716 5.50
6. Lee Foundation 181,690,897 4.34
7. Singapore Investments Pte Ltd 157,007,526 3.75
8. Lee Rubber Company Pte Ltd 129,850,352 3.10
9. United Overseas Bank Nominees Pte Ltd 83,307,296 1.99
10. Raffles Nominees (Pte) Ltd 72,790,562 1.74
11. BPSS Nominees Singapore (Pte.) Ltd. 63,320,972 1.51
12. Lee Latex Pte Limited 59,940,381 1.43
13. Kallang Development (Pte) Limited 40,340,020 0.96
14. DB Nominees (S) Pte Ltd 36,157,603 0.86
15. Lee Pineapple Company Pte Ltd 28,046,030 0.67
16. Kew Estate Limited 25,619,097 0.61
17. Tropical Produce Company Pte Ltd 20,441,980 0.49
18. Kota Trading (Singapore) Pte Ltd 20,340,492 0.49
19. Island Investment Company Pte Ltd 18,200,411 0.44
20. Lee Plantations Pte Limited 15,616,280 0.37
Total 3,013,956,760 72.01
* Percentage is calculated based on the total number of issued shares, excluding treasury shares.
Approximately 72.2% of the issued shares (excluding treasury shares) are held in the hands of the public. Rule 723 of the Listing Manual
of the Singapore Exchange Securities Trading Limited has accordingly been complied with.

SUBSTANTIAL SHAREHOLDERS
(As shown in the Register of Substantial Shareholders)
Direct interest Deemed interest Total

Substantial shareholders No. of Shares No. of Shares No. of Shares %*
Lee Foundation 181,690,897 30,554,123 (1) 212,245,020 5.07
Selat (Pte) Limited 462,024,552 19,805,502 (2) 481,830,054 (2) 11.51 (2)
* Percentage is calculated based on the total number of issued shares, excluding treasury shares.
(1)
The deemed interest represents Lee Foundation’s deemed interest in (a) the 28,046,030 shares held by Lee Pineapple Company (Pte) Limited, and (b) the
2,508,093 shares held by Peninsula Plantations Sendirian Berhad.
(2)
The deemed interest represents Selat (Pte) Limited’s deemed interest in (a) the 1,605,091 shares held by South Asia Shipping Company Private Limited,
and (b) the 18,200,411 shares held by Island Investment Company (Private) Limited as shown in the Register of Substantial Shareholders as at
7 March 2018. Selat (Pte) Limited has, however, informed the Bank in writing that it has ceased to have a deemed interest in these shares following
a corporate restructuring exercise but that, as the cessation did not result in an overall percentage level change in Selat (Pte) Limited’s interest in OCBC,
no notification of the change was required to be given under the Securities and Futures Act, Chapter 289.

FIVE-YEAR ORDINARY SHARE CAPITAL HISTORY
Number of ordinary shares ('000)

Year Particulars Issued Held in Treasury In circulation
2013 Shares issued to non-executive directors 77
Share buyback (14,459)
Issue of shares pursuant to Share Option Schemes 7,896
Issue of shares pursuant to Employee Share Purchase Plan 5,180
Issue of shares pursuant to Deferred Share Plan 3,174
Year end balance 3,441,177 (8,368) 3,432,809

Shares issued in lieu of dividend 114,901
Shares issued pursuant to Rights Issue 436,775
Year end balance 3,992,929 (9,043) 3,983,886

Year end balance 4,121,561 (6,086) 4,115,475

Issue of shares pursuant to Employee Share Purchase Plan 26
Year end balance 4,193,729 (11,022) 4,182,707

Year end balance 4,193,784 (7,071) 4,186,713

GRI STANDARDS
CONTENT INDEX
DISCLOSURE NUMBER DISCLOSURE TITLE PAGE REFERENCE AND REMARKS
GENERAL DISCLOSURES
Organisational Profile
102-1 Name of the organisation Oversea-Chinese Banking Corporation Limited
102-2 Activities, brands, products, and services Our Well-Diversified Business. Refer to page 2
102-3 Location of headquarters 63 Chulia Street, #10-00 OCBC Centre East, Singapore 049514
More than 600 branches and representative offices

102-4 Location of operations
in 18 countries and regions
102-5 Ownership and legal form Public limited company listed on the Singapore Exchange
Key markets are Singapore, Malaysia, Indonesia and

102-6 Markets served
Greater China
102-7 Scale of the organisation Our Well-Diversified Business. Refer to page 2
Information on employees and

102-8 Inclusive Workforce. Refer to page 58
other workers
102-9 Supply chain Economic Contributions. Refer to page 54
OCBC Bank acquired National Australia Bank’s Private

Significant changes to the
102-10 Wealth business in Singapore and Hong Kong as announced
organisation and its supply chain
in May 2017
OCBC does not explicitly refer to the precautionary principle or

102-11 Precautionary Principle or approach approach in its risk management principles. We seek to create
sustainable value for our stakeholders. Refer to page 20
Our key external initiatives include observing the United

Nations Global Compact (UNGC) Ten Principles and the Tripartite
102-12 External initiatives Alliance for Fair & Progressive Employment Practices (TAFEP)
Tripartite Standards. We also support the BoardAgender 100
Champions campaign
Our key memberships include The Association of Banks in

Singapore (ABS), The Association of Banks in Malaysia (ABM),
The Hong Kong Association of Banks (HKAB), Indonesian Banks
Association (Perbanas) and China Banking Association (CBA).
102-13 Membership of associations
In 2006, OCBC became a pioneer member of Global Compact
Network Singapore (GCNS) which is a local chapter of the
UNGC. We are a founding member of the National Volunteer &
Philanthropy Centre (NVPC) Company of Good in 2016. OCBC
Wing Hang was the silver member of WWF Hong Kong in 2015
Strategy
102-14 Statement from senior decision-maker Board Statement. Refer to page 44
Ethics and Integrity
Values, principles, standards, and

102-16 Refer to www.ocbc.com/group/who-we-are/purpose-values.html
norms of behavior
Governance
102-18 Governance structure Sustainability Governance Structure. Refer to page 45

GRI STANDARDS CONTENT INDEX
DISCLOSURE NUMBER DISCLOSURE TITLE PAGE REFERENCE AND REMARKS
GENERAL DISCLOSURES
Stakeholder engagement
102-40 List of stakeholder groups Stakeholder Engagement. Refer to page 46
102-41 Collective bargaining agreements In Singapore, the Singapore Bank Officers Association (SBOA),
Singapore Bank Employees Union (SBEU) and Singapore Manual
and Mercantile Workers Union (SMMWU) represent the applicable
cohort on collective bargaining
In West Malaysia, the Association of Bank Officers and

National Union of Bank Employees and in East Malaysia,
the Sabah Banking Employees’ Union and Sarawak Bank
Employees’ Union represent the applicable cohorts on
collective bargaining
102-42 Identifying and selecting stakeholders

102-43 Approach to stakeholder engagement Stakeholder Engagement. Refer to page 46
102-44 Key topics and concerns raised
Reporting Practice
Entities included in the consolidated
102-45 About the Report. Refer to page 43
financial statements
Defining report content and
102-46
topic Boundaries Our ESG Factors. Refer to page 48
102-47 List of material topics
102-48 Restatements of information
Not Applicable. Inaugural Sustainability Report
102-49 Changes in reporting
102-50 Reporting period About the Report. Refer to page 43
102-51 Date of most recent report Not Applicable. Inaugural Sustainability Report
102-52 Reporting cycle About the Report. Refer to page 43
Contact point for questions
102-53 [email protected]
regarding the report
Claims of reporting in accordance
102-54 About the Report. Refer to page 43
with GRI Standards
102-55 GRI Content Index GRI Standards Content Index. Refer to page 277
102-56 External Assurance About the Report. Refer to page 43
GRI STANDARD DISCLOSURE NUMBER DISCLOSURE TITLE PAGE REFERENCE AND REMARKS
Management Approach
Explanation of the material topic
103-1
and its boundary
Management ESG factors.
The management approach
Approach 103-2 Refer to pages 50 to 62
and its components
103-3 Evaluation of the management appraoch

GRI STANDARD DISCLOSURE NUMBER DISCLOSURE TITLE PAGE REFERENCE AND REMARKS
Economic
Economic 201-1 Direct economic value generated
Performance and distributed
Indirect Economic 203-2 Significant indirect economic impacts Economic Contributions.
Impacts Refer to page 54
Procurement 204-1 Proportion of spending on
Practices local suppliers
205-2 Communications and training on anti-
corruption policies and procedures Strong Governance.
Anti-corruption
205-3 Confirmed incidents of corruption Refer to page 50
and actions taken
Environmental
302-1 Energy consumption within the organisation
Energy
302-3 Energy intensity
Environment.
Water 303-1 Water withdrawal by source
Refer to page 61
305-2 Energy indirect (Scope 2) GHG emissions
Emissions
305-4 GHG emissions intensity
Social
Employment 401-1 New employees hires and employee turnover
Average hours of training per year
404-1
Training and per employee
Inclusive Workforce.
Education Programmes for upgrading employee skills and
404-2 Refer to page 58
transition assistance programmes
Diversity and Diversity of governance bodies
405-1
Equal Opportunity and employees
Operations with local community
Community Development.
Local Communities 413-1 engagement, impact assessments,
Refer to page 57
and development programmes
Incidents of non-compliance
Marketing
417-2 concerning product and service Fair Dealing. Refer to page 51
and Labelling
information and labelling
Substantiated complaints concerning breaches
Combating Financial Crimes and
Customer Privacy 418-1 of customer privacy and losses
Cyber Threats. Refer to page 53
of customer data
Financial Services Sector Disclosure
Policies with specific environmental and social
Former FS1
components applied to business lines
Procedures for assessing and
Former FS2 screening environmental and social
Responsible Financing.
Product Portfolio risks in business lines
Refer to page 52
Process(es) for improving staff competency
to implement the environmental and
Former FS4
social policies and procedures as applied
to business lines
Initiatives to improve access to financial Financial Inclusion.
Local Communities FS14
services for disadvantaged people Refer to page 55
Policies for the design and sale of financial Fair Dealing.
Former FS15
Product and products and services Refer to page 51
Service Labelling Initiatives to enhance financial literacy Financial Inclusion.
Former FS16
by type of beneficiary Refer to page 55

FURTHER INFORMATION ON
MANAGEMENT COMMITTEE
MR SAMUEL N. TSIEN Banking. Mr Ching has more than management in Singapore, Malaysia,
30 years of experience in regional Indonesia, Hong Kong, China and
finance, corporate banking and cash seven other overseas centres. Since
management. Before joining OCBC, he February 2012, he has had the additional
Mr Samuel Tsien was first appointed
was Director of Corporate Finance, Philips responsibility of overseeing the Bank’s
to the Board on 13 February 2014
Electronics Asia Pacific Pte Ltd. He also Global Investment Banking division
and last re-elected as a Director on
held senior regional assignments in Bank covering capital markets, corporate
28 April 2017. He was appointed Group
of America and was Treasurer of Union finance and mezzanine capital business.
Chief Executive Officer on 15 April
Carbide Asia Pacific. Mr Ching holds a Mr Lam has more than 30 years of
2012. He joined OCBC Bank in July 2007
Bachelor of Business Administration banking and investment management
as Senior Executive Vice President,
from the National University of experience covering global fund
managing the Group’s corporate and
Singapore. Age 58. management, global markets sales &
commercial banking business. In 2008,
trading, global investment banking
he assumed the position as Global
and Asian financial market businesses.
Head of Global Corporate Bank with
Currently, he serves on the boards of Bank
added responsibilities of overseeing the MR DARREN TAN of Singapore, OCBC Securities, AVIC Trust
financial institution and transaction Chief Financial Officer and REACH Community Services Society.
banking businesses. He has 40 years of
Mr Lam also serves on Great Eastern
banking experience. Prior to joining OCBC Mr Darren Tan was appointed Executive Group’s Asset/Liability Committee
Bank, he was the President and Chief Vice President and Chief Financial and Investment Committee and the
Executive Officer of China Construction Officer (CFO) in December 2011. As Government of Singapore Investment
Bank (Asia) when China Construction CFO, he oversees financial, regulatory Corporation’s (GIC) Board Risk Committee.
Bank acquired Bank of America (Asia). and management accounting, treasury Prior to joining OCBC Bank, Mr Lam held
From 1995 to 2006, he was President financial control, corporate treasury, various senior management positions in
and Chief Executive Officer of Bank of funding and capital management, GIC, Citibank and Temasek Holdings. In
America (Asia), and Asia Consumer and corporate planning and development September 2014, he was appointed by
Commercial Banking Group Executive of and investor relations. He joined OCBC the Monetary Authority of Singapore as
Bank of America Corporation. Mr Tsien Bank in March 2007 as Head of Asset Co-Chairman of the Singapore Foreign
holds a Bachelor of Arts with Honours Liability Management in Global Treasury Exchange Market Committee. He
in Economics from the University of and assumed the role of Deputy CFO in holds a Bachelor of Accountancy with
California, Los Angeles. Age 63. May 2011. Prior to joining OCBC, Mr Tan Honours from the National University of
worked for 13 years in the Government Singapore and is a Chartered Financial
of Singapore Investment Corporation Analyst, Fellow Chartered Accountant of
(GIC) with his last position in GIC as
MR CHING WEI HONG Singapore, IBF Distinguished Fellow and
Head of Money Markets. He is a council member of the Singapore Institute of
Chief Operating Officer member of the Institute of Singapore Directors. Age 55.
Chartered Accountants and an Adjunct
Mr Ching Wei Hong was appointed Chief
Professor at Nanyang Business School.
Operating Officer (COO) on 15 April 2012
Mr Tan graduated with First Class
and is also currently the Chairman of
Honours in Accountancy from Nanyang MR VINCENT CHOO
Bank of Singapore and OCBC Securities as Group Risk Management
Technological University and is a
well as Deputy Chairman of Lion Global
Chartered Financial Analyst and a Fellow
Investors. In his capacity as COO of OCBC Mr Vincent Choo was appointed
Chartered Accountant of Singapore.
Bank, he is responsible for the Global Age 47. Head of Group Risk Management on
Wealth Management and Consumer 1 August 2014. As Chief Risk Officer,
division, focusing on building the OCBC he covers the full spectrum of risk,
Group’s consumer banking franchise and including Credit, Technology and
wealth management business in its key MR LAM KUN KIN Information Security, Liquidity, Market
markets in Asia. Mr Ching also oversees Global Treasury and and Operational risk management. He
Group Customer Experience and OCBC Investment Banking reports jointly to both Group CEO and the
Bank’s fintech and innovation unit, Board Risk Management Committee of
The Open Vault at OCBC. In his tenure Mr Lam Kun Kin was appointed Head OCBC Bank. Mr Choo joined OCBC Bank
with OCBC Bank, he has held senior of Global Treasury in January 2007 and from Deutsche Bank AG where his last
management responsibilities across Senior Executive Vice President in appointment was Managing Director and
various roles including Chief Financial April 2011. He has global responsibility Chief Risk Officer for Asia Pacific. In his
Officer, Head of Group Operations and for OCBC Bank’s financial market 20 years at Deutsche Bank AG, he served
Technology and Head of Transaction businesses and asset liability in a number of senior roles including

Head of Market Risk Management for Group. Ms Lam holds a Bachelor of board governance. She was also
Asia Pacific, with additional responsibilities Accountancy (Honours) from the instrumental in driving and establishing
for Traded Credit Products, and Head Nanyang Technological University and the Bank’s thrust into serving the
of New Product Approval for Asia. He is an IBF Fellow (Corporate Banking). wealth needs of the affluent with the
holds a Master of Arts in Economics from Age 46. OCBC Premier Banking proposition.
University of Akron. Age 55. Ms Kng holds a Master of Business
Administration from the National
MR NA WU BENG University of Singapore, where she was
MR LINUS GOH awarded the Saw Gold Medal in Finance.
CEO, OCBC Wing Hang Bank
She recently completed her Advanced
Global Commercial Banking
Management Program with Harvard
Mr Na Wu Beng was appointed Chief
Business School. Age 52.
Mr Linus Goh was appointed the Executive Officer of OCBC Wing Hang
Head of Global Commercial Banking Bank in August 2014. Prior to this
in April 2012. In this capacity, he has appointment, he was Deputy President
global responsibility for OCBC Bank’s Director of Bank OCBC NISP for 10 years MR BAHREN SHAARI
commercial, institutional and transaction and was instrumental in driving the CEO, Bank of Singapore
banking businesses. He joined OCBC Bank corporate banking business and
in April 2004 as Executive Vice President spearheading the collaborative efforts Mr Bahren Shaari was appointed Chief
and Head of International, and in August between OCBC Bank and Bank OCBC Executive Officer of Bank of Singapore
2008, he assumed responsibility for NISP across different business functions. in February 2015. He has more than
Global Enterprise Banking and Financial Mr Na joined OCBC Bank in 1990 as 30 years of private banking experience.
Institutions. Mr Goh has over 30 years of the General Manager of OCBC Bank’s Mr Shaari joined ING Asia Private Bank
banking experience, including 17 years at Hong Kong branches. He returned to in 2009 and was a member of the
Citibank, N.A. Singapore, where he held Singapore in 1999 to take on the role of management team that continued to
several senior management positions Head of North Asia overseeing the bank’s lead after it was acquired by OCBC Bank
overseeing corporate banking, financial operations in Hong Kong, China, Taiwan, in 2010 and renamed Bank of Singapore,
institutions, e-business and transaction Korea and Japan. From 2000 to 2004, where he was Global Head of Southeast
banking. Mr Goh serves as a board before his posting to Bank OCBC NISP, Asia for five years. Prior to that, he was
member of the Singapore Totalisator he headed OCBC Bank’s international Managing Director of UBS AG Wealth
Board and of the Growth Enterprise banking division and was responsible for Management. Mr Shaari is active in public
Fund and SPRING SEEDS Capital under branches across eight countries. Mr Na service and has been a non-executive
SPRING Singapore. He is a member of the was appointed Executive Vice President in and independent director of Singapore
Pro-Enterprise Panel under the Ministry 2001. Before joining OCBC Bank, he was Press Holdings Limited since April 2012.
of Trade and Industry and the SME at International Bank of Singapore for 11 Mr Shaari currently serves as Chairman of
Committee under the Singapore Business years, where he was based in Taiwan for its Nominating Committee and Member
Federation where he chairs the sub- seven years. He holds a Bachelor of Arts of its Executive Committee. Mr Shaari had
committee on SME Financing. Mr Goh (Economics) with Honours from Coventry previously served as a Board Member of
holds a Bachelor of Arts (Philosophy) with University in the United Kingdom. Age 62. the Maritime Port Authority of Singapore
Honours from the National University from 2000 to 2012. Mr Shaari was sworn
of Singapore and is an IBF Distinguished in as an alternate member to the Council
Fellow. Age 55. MS KNG HWEE TIN of Presidential Advisers in April 2017.
Mr Shaari is an IBF Distinguished Fellow
CEO, OCBC Wing Hang Bank (China) and holds a Bachelor of Accountancy
degree from the National University of
MS ELAINE LAM Ms Kng Hwee Tin was appointed
Singapore. Age 55.
Global Corporate Banking Executive Director and Chief Executive
Officer of OCBC Bank (China) Limited in
Ms Elaine Lam was appointed Head of December 2012 and was responsible for
Global Corporate Banking in April 2016. the bank’s growth strategy in China. The MR TAN WING MING
She is responsible for OCBC Bank’s bank was rebranded OCBC Wing Hang Regional General Manager for
corporate banking business which Bank (China) Limited in July 2016. Ms North East Asia
spans Real Estate, Wholesale Corporate Kng has more than 20 years of banking
Marketing, Global Commodities Finance experience spanning a wide spectrum Mr Tan Wing Ming was appointed Regional
as well as the Bank’s corporate banking of activities. Prior to this appointment, General Manager for North East Asia
business in all overseas offices. With she was OCBC Bank’s Head of Group and the Chief Executive of OCBC Bank
more than 20 years of experience in Audit overseeing the full spectrum of Hong Kong branch since September
corporate banking, Ms Lam also serves audit activities for the Bank and its 2009. In this role, he assumes oversight
in the Institute of Banking and Finance’s subsidiaries. During her tenure with OCBC of the Bank’s branches in Hong Kong,
Corporate Banking Workgroup and Bank, she also held responsibilities in risk Japan, Korea and Taiwan. In November
the Financial Industry Competency management and implemented several 2016, he was promoted to Executive Vice
Standards’ Corporate Banking Working key initiatives to further strengthen President. Mr Tan joined OCBC Bank in

FURTHER INFORMATION ON MANAGEMENT COMMITTEE
January 2005 as Senior Vice President and NISP, Ms Surjaudaja had three years of Distinction) from Indiana University.
Country Head of OCBC Bank’s operations corporate experience with SGV Utomo – Age 49.
in China. Following the local incorporation Arthur Andersen. Ms Surjaudaja holds
of OCBC Bank in China in July 2007, he a Master of Business Administration
was appointed Director and President (Accounting) and a Bachelor of Science
MR TAN CHOR SEN
of OCBC Bank (China) Limited until his Cum Laude (Accounting and Finance)
current role. Mr Tan had worked for major from San Francisco State University.
Global Enterprise Banking –
American and European investment and Age 53. International
commercial banks in Singapore for 10
years. He then started and managed his Mr Tan Chor Sen was appointed the
own private business in China for 11 years Head of Global Enterprise Banking –
MR GAN KOK KIM International in 2012. In addition to
before joining OCBC Bank. Mr Tan holds a
Global Investment Banking overseeing the growth of the emerging
Bachelor of Arts (Economics) with Honours
from Georgetown University and a Master business segment in OCBC Bank’s
Mr Gan Kok Kim was appointed Executive core markets, he is also in charge of
of Business Administration (Finance) from
Vice President and Head of Global developing cross-border capabilities and
the University of Chicago. Age 58.
Investment Banking in February 2012. As business within the region, leveraging
the Head of Global Investment Banking, the OCBC network and partner banks
he oversees OCBC Bank’s debt capital in the key markets. Mr Tan joined OCBC
MR ONG ENG BIN markets, corporate finance, merger and Bank in 2005 as Head of Emerging
CEO, OCBC Bank Malaysia acquisition and mezzanine investment Business. He serves as a member of
businesses. Mr Gan joined OCBC Bank in the Capital Markets Workgroup under
Mr Ong Eng Bin was appointed Chief 2004 as the Head of Treasury at OCBC the Monetary Authority of Singapore,
Executive Officer of OCBC Malaysia in Bank (Malaysia). In February 2011, he the Money PAC Advisory Committee
August 2014 and currently oversees the was also appointed Head of International under SPRING Singapore and The
OCBC Group’s Malaysian franchise. Prior Treasury. In August 2011, he was given Inquiry Panel under The Law Society of
to this appointment, he was its Head the additional role of Head of Asset Singapore. He is a council member of the
of Business Banking, a role he assumed Liability Management in Singapore Singapore-Shandong Business Council
in 2012 with responsibilities covering and gave up his Malaysian role. Mr Gan and Singapore-Tianjin Economic and
corporate and commercial, emerging has more than 28 years of trading and Trade Council under IE Singapore. Mr Tan
business and transaction banking. He management experience and has held has over 30 years of banking experience
joined the bank as a management trainee various positions in Citibank N.A. He where he began his career in Commercial
in 1988 and was appointed Head of holds a Bachelor of Science in Economics Banking, with postings in Consumer
Corporate Banking & Large Corporates from the Massachusetts Institute of Banking. He later held several positions
in 2000. Mr Ong holds a Bachelor of Technology. Age 52. in Corporate and Offshore Banking.
Accounting & Finance from the University Mr Tan holds a Bachelor of Business
of Manchester. Age 54. Administration from the National
MR DENNIS TAN University of Singapore and is an IBF
Consumer Financial Fellow (Corporate Banking). Age 54.
MS PARWATI SURJAUDAJA Services Singapore
President Director and
CEO, Bank OCBC NISP Mr Dennis Tan was appointed Head of MR JASON HO
Consumer Financial Services Singapore Group Human Resources
Ms Parwati Surjaudaja was appointed in November 2012 and Executive Vice
the President Director and CEO of President in April 2013. He oversees Mr Jason Ho joined OCBC Bank in January
Bank OCBC NISP in December 2008. OCBC Bank’s consumer banking business 2013 as Senior Vice President and
She joined Bank OCBC NISP as a Director in Singapore. Mr Tan joined OCBC Head of Asset Liability Management.
in 1990 and served as Deputy President Bank in September 2009 as the Head He assumed the role of Head of Group
Director from 1997. She was appointed of Branch and Group Premier Banking. Human Resources in July 2015, following
President Director and CEO of the bank Prior to OCBC Bank, he spent 16 years at his appointment as Deputy Head,
at end-2008 and was re-elected in Citibank Singapore, where he last held the effective January 2015. He has more
2011 and 2014 for her current position. position of Managing Director, Sales and than 30 years of banking experience and
She is currently a Board Member of Distribution Head of its Global Consumer has held senior level positions at KBC
Perbanas and Indonesian Bankers Banking division. Mr Tan holds a Bachelor Bank, Standard Chartered Bank and Volvo
Association. Prior to joining Bank OCBC of Science in Business (Honours with Group Treasury Asia Limited. Mr Ho holds

a Bachelor of Business Administration MS LORETTA YUEN He is also an Associate Member of the
from the National University of Singapore Royal Institution of Chartered Surveyors
Group Legal and
and a Masters in Applied Finance from in the United Kingdom. Age 61.
Macquarie University. He also serves as
Regulatory Compliance
a Director of the Institute for Human
Ms Loretta Yuen was appointed General
Resource Professionals and is a member MR NEO BOCK CHENG
Counsel and Head of Group Legal and
of the HR Sectoral Tripartite Committee.
Regulatory Compliance in September Global Transaction Banking
Age 55.
2010 and Executive Vice President in
June 2015. She oversees the full spectrum Mr Neo Bock Cheng joined OCBC Bank
of legal and regulatory risks, including in October 2003 as Head of Cash
MR LIM KHIANG TONG anti-money laundering, across OCBC Management. He was appointed Senior
Group Operations and Technology Bank and its subsidiaries, and provides Vice President in April 2005 to oversee
advice on regulatory risks and legal issues the Global Transaction Banking Division
Mr Lim Khiang Tong joined OCBC Bank involved in decisions to management, so which provides cash management, trade
in September 2000 and took on the role that management can make informed finance and nominee services to corporate
of Head of IT Management in January strategic choices within an acceptable and commercial banking customers. In
2002. He was appointed Executive Vice legal and regulatory risk profile. Ms Yuen April 2012, he was appointed Executive
President and Head of Group Information has over 17 years of legal and regulatory Vice President. Mr Neo brings with him
Technology in December 2007. In May experience in banking and finance. She more than 27 years of corporate banking
2010, he assumed the role of Head of graduated with Second Class Honours experience, including over 13 years with
Group Operations and Technology. He in Law from the National University of regional assignments at several major
has more than 27 years of management Singapore and is an IBF Distinguished international banks such as Citibank and
experience in strategic technology Fellow. Age 43. JPMorgan Chase. Mr Neo graduated with
development, information technology a Bachelor of Engineering (Civil) degree
and banking operations. This includes from the National University of Singapore.
driving regional processing operations, Age 52.
strategic technology initiatives and
MR PETER YEOH
project management. Since August 2016, Group Secretariat
he has also assumed oversight of the MS KOH CHING CHING
bank’s Quality & Service Excellence and Mr Peter Yeoh joined OCBC Bank in
January 1984. Since joining the Bank, Group Corporate Communications
Group Property Management divisions.
He holds a Bachelor of Science (Computer he has held responsibilities in finance,
accounting, management information Ms Koh Ching Ching was appointed
Science & Economics) from the National
services and strategic projects. He was Head of Group Corporate Communications
University of Singapore. Age 57.
appointed Company Secretary in August in November 2004 and Executive Vice
2002, a role that includes responsibilities President in March 2012. She leads OCBC
for corporate governance and board Bank’s group communications initiatives
MS GOH CHIN YEE affairs. He holds a Bachelor of Commerce with the media, employees, customers,
Group Audit from the University of Western Australia, shareholders and the general public. Prior
to her role in corporate communications,
and he is a Member of the Institute
Ms Goh Chin Yee was appointed Head she led OCBC Bank’s franchise expansion
of Chartered Accountants in Australia
of Group Audit in March 2013 and efforts in trade finance in Malaysia.
and Institute of Singapore Chartered
Executive Vice President in April 2014. Before this, Ms Koh had 16 years of
Accountants. Age 63.
She oversees the full spectrum of internal corporate and retail banking experience,
audit activities for OCBC Bank and its having held various senior customer and
subsidiaries. She reports directly to the product positions in local and foreign
Audit Committee and administratively to MR VINCENT SOH financial institutions. She graduated
the Group CEO. Prior to this appointment, Group Property Management with First Class Honours in Business
Ms Goh was the Head of Business Administration from the National
Management Unit in OCBC Bank’s Global Mr Vincent Soh was appointed Head, University of Singapore. Age 49.
Treasury division. She has more than Group Property Management, and
29 years of experience in banking and Managing Director of OCBC Property
has held responsibilities across various Services Pte Ltd, a wholly-owned
areas including strategic management, subsidiary of OCBC Bank, in June 2004. He
investment research, fund management, is responsible for managing the Group’s
finance, risk management and treasury real estate portfolio. He has held senior-
business management. Ms Goh holds level positions in the public and private
a Bachelor of Engineering (Civil) with sectors. Mr Soh holds a Master of Science
First Class Honours from the National (Property & Maintenance Management)
University of Singapore and is a Chartered and Master of Public Policy, both from
Financial Analyst. Age 53. the National University of Singapore.

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63 Chulia Street Units 17/18, Block B Menara OCBC Head Office Union Financial Center (UFC)
#10-00 OCBC Centre East Bangunan Habza 18 Jalan Tun Perak Level 18 Unit 02-10
Singapore 049514 Spg 150, Kpg. Kiarong 50050 Kuala Lumpur Menara Great Eastern Corner of Mahabandoola
Tel: (65) 6318 7222 Bandar Seri Begawan BE 1318 Malaysia 303 Jalan Ampang Road & Thein Phyu Road
Fax: (65) 6534 3986 Negara Brunei Darussalam www.ocbc.com.my 50450 Kuala Lumpur 45th Street
www.ocbc.com Tel: (673) 223 3118 Malaysia Botataung Township
Fax: (673) 223 8118 OCBC Contact Centre: Tel: (603) 4259 8888 Yangon
OCBC Bank has 51 branches
www.greateasternlife.com/bn Within Malaysia Fax: (603) 4813 0055 Republic of Union of Myanmar
in Singapore.
Tel: (603) 8317 5000 www.greateasterngeneral.com Tel: (951) 861 0388
Lion Global Investors Limited (Personal) Fax: (951) 861 0394
Bank of Singapore Limited Great Eastern General
Brunei Branch Tel: 1300 88 7000
Head Office Insurance (Malaysia) Berhad has
Unit 3A, Level 5, (Corporate) The Great Eastern Life
63 Market Street 13 branches and six servicing
Retail Arcade Assurance Company Limited
#22-00 Outside Malaysia offices in Malaysia.
The Empire Hotel & Myanmar Representative Office
Bank of Singapore Centre Tel: (603) 8317 5000
Country Club Level 3, Unit No. 03-09
Singapore 048942 (Personal) Great Eastern Takaful Berhad
Jerudong BG3122 Union Business Centre
Tel: (65) 6559 8000 Tel: (603) 8317 5200 (916257-H)
Negara Brunei Darussalam Nat Mauk Road
Fax: (65) 6559 8180 (Corporate) Level 3
Tel: (673) 261 0925/261 0926 Bo Cho Quarter
www.bankofsingapore.com Menara Great Eastern
Fax: (673) 261 1823 OCBC Bank (Malaysia) Berhad Bahan Township
303 Jalan Ampang
has 32 branches in Malaysia. Yangon
Great Eastern 50450 Kuala Lumpur
Republic of Union of Myanmar
Holdings Limited Malaysia
OCBC Al-Amin Bank Berhad Tel/Fax: (951) 860 3384
The Great Eastern Life Tel: (603) 4259 8338
Head Office www.greateasternlife.com
Assurance Company Limited INDONESIA 25th floor Wisma Lee Rubber
Fax: (603) 4259 8808
Great Eastern General www.greateasterntakaful.com
1 Jalan Melaka
Insurance Limited
PT Bank OCBC NISP Tbk 50100 Kuala Lumpur Great Eastern Takaful Berhad
Head Office
Head Office Malaysia has three agency offices.
1 Pickering Street PHILIPPINES
#01-01 Great Eastern Centre OCBC NISP Tower
Jl Prof. Dr. Satrio Kav. 25 General Enquiries: Pacific Mutual Fund Bhd
Singapore 048659
Jakarta 12940 Within Malaysia 1001, Level 10 Uptown 1 Bank of Singapore Limited
Tel: (65) 6248 2000
Indonesia Tel: (603) 8314 9310 No. 1 Jalan SS21/58 Philippine Representative
Fax: (65) 6532 2214
Tel: (62) 21 2553 3888 (Personal) Damansara Uptown Office
www.greateasternlife.com
Fax: (62) 21 5794 4000 Tel: 1300 88 0255 47400 Petaling Jaya 22/F Tower One and
www.ocbcnisp.com (Corporate) Selangor Darul Ehsan Exchange Plaza
Great Eastern Financial Advisers
Malaysia Ayala Triangle Ayala Avenue
Private Limited PT Bank OCBC NISP Tbk has Outside Malaysia
Tel: (603) 7725 9877 1226 Makati City
1 Pickering Street 338 offices in Indonesia. Tel: (603) 8314 9310
Fax: (603) 7725 9860 Philippines
#01-01 Great Eastern Centre (Personal)
www.pacificmutual.com.my Tel: (632) 479 8988
Singapore 048659 PT Great Eastern Life Indonesia Tel: (603) 8314 9090
Tel: (65) 6248 2121 (Corporate) Fax: (632) 848 5223
Head Office OCBC Advisers (Malaysia)
Fax: (65) 6327 3073 Menara Karya 5th Floor OCBC Al-Amin Bank Berhad has Sdn Bhd
www.greateasternfa.com.sg Jl H.R. Rasuna Said Blok X-5 13 branches in Malaysia. 13th Floor Menara OCBC
Kav.1-2 18 Jalan Tun Perak
Lion Global Investors Limited Jakarta Selatan 12950 THAILAND
OCBC Bank Limited 50050 Kuala Lumpur
65 Chulia Street Indonesia Labuan Branch Malaysia
#18-01 OCBC Centre Tel: (62) 21 2554 3888 Licensed Labuan Bank Tel: (603) 2034 5696
Singapore 049513 Fax: (62) 21 5794 4717 OCBC Bank Limited
(940026C) Level 8 (C) Fax: (603) 2691 6616
Tel: (65) 6417 6800 www.greateasternlife.com Bangkok Branch
Main Office Tower
Fax: (65) 6417 6801 Unit 2501-2 25th Floor
Financial Park Labuan Pac Lease Berhad
www.lionglobalinvestors.com PT OCBC Sekuritas Indonesia Q House Lumpini
Jalan Merdeka Level 12 & 13, Menara Haw Par
Head Office 1 South Sathorn Road
87000 Labuan Jalan Sultan Ismail
OCBC Securities Indonesia Stock Exchange Tungmahamek Sathorn
Federal Territory 50250 Kuala Lumpur
Private Limited Building Tower 2 Bangkok 10120
Malaysia Malaysia
18 Church Street 29th Floor Thailand
Tel: (60-87) 423 381/82 Tel: (603) 2035 1000
#01-00 OCBC Centre South Suite 2901 Tel: (66) 2 287 9888
Fax: (60-87) 423 390 Fax: (603) 2032 3300
Singapore 049479 Jl Jend. Sudirman Kav. 52-53 Fax: (66) 2 287 9898
Tel: (65) 6338 8688 Jakarta 12190 Great Eastern Life Assurance OCBC Properties (Malaysia)
Fax: (65) 6538 9115 Indonesia (Malaysia) Berhad Sdn Bhd
www.iocbc.com Tel: (62) 21 2970 9300 Head Office 27th Floor, Wisma Lee Rubber
Fax: (62) 21 2970 9393 Menara Great Eastern 1 Jalan Melaka VIETNAM
BOS Trustee Limited www.ocbcsekuritas.com 303 Jalan Ampang 50100 Kuala Lumpur
63 Market Street #14-00
50450 Kuala Lumpur Malaysia
Bank of Singapore Centre OCBC Bank Limited
Malaysia Tel: (603) 2054 3844
Singapore 048942 Ho Chi Minh Branch
Tel: (603) 4259 8888 Fax: (603) 2031 7378
Tel: (65) 6818 6478 Unit 708-709 Level 7
Fax: (603) 4259 8000
Fax: (65) 6818 6487 Saigon Tower
www.greateasternlife.com
29 Le Duan Street
OCBC Property Services Great Eastern Life Assurance District 1
Private Limited (Malaysia) Berhad has Ho Chi Minh City
18 Cross Street 21 operational branch Vietnam
#11-01/03 offices in Malaysia. Tel: (84) 8 3823 2627
China Square Central Fax: (84) 8 3823 2611
Singapore 048423
Tel: (65) 6533 0818

EAST ASIA GREATER CHINA NORTH EUROPE
JAPAN CHINA HONG KONG SAR
AMERICA UNITED KINGDOM
OCBC Bank Limited OCBC Wing Hang Bank OCBC Bank Limited UNITED STATES OCBC Bank Limited
Tokyo Branch (China) Limited Hong Kong Branch OF AMERICA London Branch
Sanno Park Tower Head Office 9/F Nine Queen’s Road The Rex Building 3rd Floor
5th Floor 11-1 OCBC Bank Tower Central 62 Queen Street
Nagata-cho 2 chome No. 1155 Yuanshen Road Hong Kong SAR OCBC Bank Limited London EC4R 1EB
Chiyoda-ku Pudong New District Tel: (852) 2840 6200 Los Angeles Agency United Kingdom
Tokyo 100-6105 Shanghai 200135 Fax: (852) 2845 3439 801 South Figueroa Street Tel: (44) 20 7653 0900
Japan People’s Republic of China Suite 970 Fax: (44) 20 7489 1132
Tel: (81) 3 5510 7660 Tel: (86) 21 5820 0200 Bank of Singapore Limited Los Angeles CA 90017
Bank of Singapore is the trading
Fax: (81) 3 5510 7661 Fax: (86) 21 5830 1925 Hong Kong Branch United States of America
name of Oversea-Chinese
www.ocbc.com.cn 35/F One International Tel: (1) 213 624 1189
Banking Corporation Limited’s
Finance Centre Fax: (1) 213 624 1386
Including its head office, private banking business
1 Harbour View Street
OCBC Wing Hang China has in London.
Central OCBC Bank Limited
SOUTH KOREA 27 branches and sub-branches
Hong Kong SAR New York Agency
in 14 cities namely Beijing,
Tel: (852) 2846 3980 1700 Broadway 18/F
Shanghai, Xiamen, Tianjin,
OCBC Bank Limited Fax: (852) 2295 3332 New York NY 10019
Chengdu, Guangzhou,
Seoul Branch United States of America
Shenzhen, Chongqing, Qingdao,
Taepyung-ro 1-ka OCBC Wing Hang Bank Limited Tel: (1) 212 586 6222
Shaoxing, Suzhou, Zhuhai,
25th Floor Head Office Fax: (1) 212 586 0636
Foshan and Huizhou.
Seoul Finance Center 161 Queen’s Road Central
136 Sejong-daero Hong Kong SAR
The Great Eastern Life
Jung-gu Tel: (852) 2852 5111
Assurance Company Limited
Fax: (852) 2541 0036
Seoul 04520
Republic of Korea
Beijing Representative Office
No. 26 North Yue Tan Street
www.ocbcwhhk.com OCEANIA MIDDLE EAST
Tel: (82) 2 2021 3900 Heng Hua International OCBC Wing Hang Bank Limited
Fax: (82) 2 2021 3908 Business Centre has a total of 40 branches AUSTRALIA UNITED ARAB EMIRATES
710A Beijing Xi Cheng District in Hong Kong.
Beijing 100045
People’s Republic of China OCBC Wing Hang OCBC Bank Limited Bank of Singapore Limited
Tel: (86) 10 5856 5501 Credit Limited Sydney Branch (DIFC Branch)
Fax: (86) 10 5856 5502 Head Office Level 2 Office 30-32, Level 28,
14/F Tai Yau Building 75 Castlereagh Street Central Park Tower,
Bank of Ningbo Co., Ltd 181 Johnston Road Sydney NSW 2000 Dubai International
Head Office Wanchai Australia Financial Centre
No. 345, Ning Dong Road Hong Kong SAR Tel: (61) 2 9235 2022 P.O. Box 4296
Ningbo Zhejiang 315042 Tel: (852) 2251 0369 Fax: (61) 2 9221 5703 Dubai U.A.E
People’s Republic of China Fax: (852) 2907 6323 Tel: (971) 4427 7100
Tel: (86) 574 8705 0028 www.ocbcwhcr.com
Fax: (86) 574 8705 0027
OCBC Wing Hang Credit Limited
www.nbcb.com.cn
has a total of 24 offices in
Bank of Ningbo is OCBC Bank’s Hong Kong.
strategic partner in China.
As at end December 2017,
it had 315 branches, sub-
branches and offices, covering MACAO SAR
the cities of Ningbo, Shanghai,
Hangzhou, Nanjing, Shenzhen,
Suzhou, Wenzhou, Beijing, Wuxi, OCBC Wing Hang Bank Limited
Jinhua, Shaoxing, Taizhou Head Office
and Jiaxing. 241 Avenida de Almeida
Ribeiro
Macao
Tel: (853) 2833 5678
Fax: (853) 2857 6527
www.ocbcwhmac.com
OCBC Wing Hang Bank Limited
has a total of 12 branches
in Macao.
TAIWAN
OCBC Bank Limited

Taipei Branch
Suite 203 2nd Floor
205 Tun Hwa North Road
Bank Tower
Taipei 105
Taiwan
Tel: (886) 2 2718 8819
Fax: (886) 2 2718 0138

FINANCIAL CALENDAR
FEBRUARY
14 FEBRUARY 2018 Announcement of full year results for 2017
APRIL
30 APRIL 2018 Annual General Meeting
MAY
MAY 2018 Announcement of first quarter results for 2018
JUNE
4 JUNE 2018 Payment of 2017 final dividend on ordinary shares
(subject to shareholders’ approval at AGM)
AUGUST
AUGUST 2018 Announcement of second quarter results for 2018
Payment of 2018 interim dividend on ordinary shares

(subject to approval by the Board)
NOVEMBER
NOVEMBER 2018 Announcement of third quarter results for 2018

NOTICE OF ANNUAL GENERAL MEETING
Oversea-Chinese Banking Corporation Limited
(Incorporated in Singapore)
(Company Reg. No: 193200032W)
NOTICE IS HEREBY GIVEN that the Eighty-First Annual General Meeting of Oversea-Chinese Banking Corporation Limited (the “Bank”)
will be held at Sands Expo & Convention Centre, Level 4, Roselle and Simpor Ballrooms, 10 Bayfront Avenue, Singapore 018956, on
Monday, 30 April 2018 at 2.30 p.m. to transact the following business:
As Routine Business
1 To receive and consider the Directors’ statement and audited financial statements for the financial year ended 31 December 2017
and the report of the Auditors thereon.
2 To re-elect the following Directors retiring by rotation:
(a) Mr Ooi Sang Kuang

(b) Mr Lai Teck Poh
(c) Mr Pramukti Surjaudaja
3 To re-elect Mr Chua Kim Chiu, a Director retiring under Article 104 of the Bank’s Constitution.
4 To approve a final one-tier tax exempt dividend of 19 cents per ordinary share, in respect of the financial year ended
31 December 2017.
5 To approve the remuneration of the non-executive Directors of the Bank for the financial year ended 31 December 2017 comprising
the following:
(a) Directors’ fees of S$2,979,000 (2016: S$3,121,000).
(b) 6,000 ordinary shares of the Bank for each non-executive Director of the Bank who has served for the entire financial year
ended 31 December 2017 (2016: 6,000 ordinary shares), pro-rated for each non-executive Director of the Bank who has served
for less than the entire financial year ended 31 December 2017, based on the length of his service during that financial year,
and for this purpose to pass the following Resolution with or without amendments as an Ordinary Resolution:
That:
(i) pursuant to Article 143 of the Constitution of the Bank, the Directors of the Bank be and are hereby authorised to allot
and issue an aggregate of 52,668 ordinary shares of the Bank (the “Remuneration Shares”) as bonus shares for which no
consideration is payable, to The Central Depository (Pte) Limited for the account of:
(1) Mr Ooi Sang Kuang (or for the account of such depository agent as he may direct) in respect of 6,000
Remuneration Shares;
(2) Mr Chua Kim Chiu (or for the account of such depository agent as he may direct) in respect of 1,693
(3) Ms Christina Hon Kwee Fong (Christina Ong) (or for the account of such depository agent as she may direct)
in respect of 6,000 Remuneration Shares;
(4) Mr Lai Teck Poh (or for the account of such depository agent as he may direct) in respect of 6,000
(5) Dr Lee Tih Shih (or for the account of such depository agent as he may direct) in respect of 6,000

(6) Mr Quah Wee Ghee (or for the account of such depository agent as he may direct) in respect of 6,000
(7) Mr Pramukti Surjaudaja (or for the account of such depository agent as he may direct) in respect of 6,000
(8) Mr Tan Ngiap Joo (or for the account of such depository agent as he may direct) in respect of 6,000
(9) Dr Teh Kok Peng (or for the account of such depository agent as he may direct) in respect of 2,975
Remuneration Shares; and
(10) Mr Wee Joo Yeow (or for the account of such depository agent as he may direct) in respect of 6,000
Remuneration Shares,
as payment in part of their respective non-executive Directors’ remuneration for the financial year ended
31 December 2017, the Remuneration Shares to rank in all respects pari passu with the existing ordinary shares; and
(ii) any Director of the Bank or the Secretary be authorised to do all things necessary or desirable to give effect to the above.
6 To re-appoint KPMG LLP as Auditors of the Bank and to authorise the Directors to fix their remuneration.
As Special Business
To consider and, if thought fit, to pass the following Resolutions which will be proposed as Ordinary Resolutions:
7 That authority be and is hereby given to the Directors of the Bank to:
(I) (i) issue ordinary shares of the Bank (“ordinary shares”) whether by way of rights, bonus or otherwise; and/or
(ii) make or grant offers, agreements or options (collectively, “Instruments”) that might or would require ordinary shares to
be issued, including but not limited to the creation and issue of (as well as adjustments to) warrants, debentures or other
instruments convertible into ordinary shares,
at any time and upon such terms and conditions and for such purposes and to such persons as the Directors may in their
absolute discretion deem fit; and

(II) (notwithstanding the authority conferred by this Resolution may have ceased to be in force) issue ordinary shares in pursuance
of any Instrument made or granted by the Directors while this Resolution was in force,
provided that:
(1) the aggregate number of ordinary shares to be issued pursuant to this Resolution (including ordinary shares to be issued in
pursuance of Instruments made or granted pursuant to this Resolution) shall not exceed 50 per cent. of the total number
of issued ordinary shares of the Bank excluding treasury shares and subsidiary holdings (as calculated in accordance with
paragraph (2) below), of which the aggregate number of ordinary shares to be issued other than on a pro rata basis to
shareholders of the Bank (including ordinary shares to be issued in pursuance of Instruments made or granted pursuant to this
Resolution) shall not exceed 10 per cent. of the total number of issued ordinary shares of the Bank excluding treasury shares
and subsidiary holdings (as calculated in accordance with paragraph (2) below);

(2) (subject to such manner of calculation and adjustments as may be prescribed by the Singapore Exchange Securities Trading
Limited (the “SGX-ST”)) for the purpose of determining the aggregate number of ordinary shares that may be issued under
paragraph (1) above, the total number of issued ordinary shares of the Bank excluding treasury shares and subsidiary holdings
shall be based on the total number of issued ordinary shares of the Bank excluding treasury shares and subsidiary holdings at
the time this Resolution is passed, after adjusting for:
(i) new ordinary shares arising from the conversion or exercise of any convertible securities or share options or vesting of
share awards which are outstanding or subsisting at the time this Resolution is passed; and
(ii) any subsequent bonus issue, consolidation or subdivision of ordinary shares,
and, in paragraph (1) above and this paragraph (2), “subsidiary holdings” has the meaning given to it in the Listing Manual of
the SGX-ST;
(3) in exercising the authority conferred by this Resolution, the Bank shall comply with the provisions of the Listing Manual of the
SGX-ST for the time being in force (unless such compliance has been waived by the SGX-ST) and the Constitution for the time
being of the Bank; and
(4) (unless revoked or varied by the Bank in General Meeting) the authority conferred by this Resolution shall continue in force
until the conclusion of the next Annual General Meeting of the Bank or the date by which the next Annual General Meeting of
the Bank is required by law to be held, whichever is the earlier.
8 That authority be and is hereby given to the Directors of the Bank to:
(I) offer and grant options in accordance with the provisions of the OCBC Share Option Scheme 2001 (the “2001 Scheme”), and
allot and issue from time to time such number of ordinary shares of the Bank as may be required to be issued pursuant to the
exercise of options under the 2001 Scheme; and/or
(II) grant rights to acquire ordinary shares in accordance with the provisions of the OCBC Employee Share Purchase Plan (the
“Plan”), and allot and issue from time to time such number of ordinary shares of the Bank as may be required to be issued
pursuant to the exercise of rights to acquire ordinary shares under the Plan,
provided that the aggregate number of new ordinary shares to be issued pursuant to the 2001 Scheme and the Plan shall not
exceed 5 per cent. of the total number of issued ordinary shares of the Bank excluding treasury shares and subsidiary holdings
(as defined in the Listing Manual of the Singapore Exchange Securities Trading Limited) from time to time.
9 That authority be and is hereby given to the Directors of the Bank to allot and issue from time to time such number of ordinary
shares of the Bank as may be required to be allotted and issued pursuant to the Oversea-Chinese Banking Corporation Limited
Scrip Dividend Scheme.
10 That:
(I) for the purposes of Sections 76C and 76E of the Companies Act, Chapter 50 of Singapore (the “Companies Act”), the exercise
by the Directors of the Bank of all the powers of the Bank to purchase or otherwise acquire issued ordinary shares of the Bank
(“Ordinary Shares”) not exceeding in aggregate the Maximum Limit (as hereafter defined), at such price or prices as may be
determined by the Directors from time to time up to the Maximum Price (as hereafter defined), whether by way of:
(i) market purchase(s) on the Singapore Exchange Securities Trading Limited (the “SGX-ST”) and/or any other stock exchange
on which the Ordinary Shares may for the time being be listed and quoted (“Other Exchange”); and/or

(ii) off-market purchase(s) (if effected otherwise than on the SGX-ST or, as the case may be, Other Exchange) in accordance
with any equal access scheme(s) as may be determined or formulated by the Directors as they consider fit, which
scheme(s) shall satisfy all the conditions prescribed by the Companies Act,
and otherwise in accordance with all other laws and regulations and rules of the SGX-ST or, as the case may be, Other
Exchange as may for the time being be applicable, be and is hereby authorised and approved generally and unconditionally
(the “Share Purchase Mandate”);
(II) unless varied or revoked by the Bank in General Meeting, the authority conferred on the Directors of the Bank pursuant to the
Share Purchase Mandate may be exercised by the Directors at any time and from time to time during the period commencing
from the date of the passing of this Resolution and expiring on the earliest of:
(i) the date on which the next Annual General Meeting of the Bank is held;
(ii) the date by which the next Annual General Meeting of the Bank is required by law to be held; and
(iii) the date on which purchases and acquisitions of Ordinary Shares pursuant to the Share Purchase Mandate are carried out
to the full extent mandated;
(III) in this Resolution:

“Average Closing Price” means the average of the last dealt prices of an Ordinary Share for the five consecutive market days
on which the Ordinary Shares are transacted on the SGX-ST or, as the case may be, Other Exchange immediately preceding
the date of market purchase by the Bank or, as the case may be, the date of the making of the offer pursuant to the off-market
purchase, and deemed to be adjusted in accordance with the listing rules of the SGX-ST for any corporate action which occurs
after the relevant five-day period;

“date of the making of the offer” means the date on which the Bank announces its intention to make an offer for the
purchase or acquisition of Ordinary Shares from holders of Ordinary Shares, stating therein the purchase price (which shall not
be more than the Maximum Price) for each Ordinary Share and the relevant terms of the equal access scheme for effecting the
off-market purchase;

“Maximum Limit” means that number of Ordinary Shares representing 5% of the issued Ordinary Shares as at the date of the
passing of this Resolution (excluding treasury shares and subsidiary holdings (as defined in the Listing Manual of the SGX-ST)); and

“Maximum Price” in relation to an Ordinary Share to be purchased or acquired, means the purchase price (excluding
brokerage, commission, applicable goods and services tax and other related expenses) which shall not exceed:
(i) in the case of a market purchase of an Ordinary Share, 105% of the Average Closing Price of the Ordinary Shares; and
(ii) in the case of an off-market purchase of an Ordinary Share pursuant to an equal access scheme, 110% of the Average
Closing Price of the Ordinary Shares; and
(IV) the Directors of the Bank and/or any of them be and are hereby authorised to complete and do all such acts and things
(including executing such documents as may be required) as they and/or he may consider expedient or necessary to give
effect to the transactions contemplated and/or authorised by this Resolution.
Peter Yeoh
Secretary
Singapore
6 April 2018

Notes:
1. A presentation by Management on the Group’s financial performance will commence at 1.30 p.m. and end at 2.15 p.m. prior to the
commencement of the Annual General Meeting.
2. (a) A member who is not a relevant intermediary is entitled to appoint not more than two proxies to attend, speak and vote
at the Annual General Meeting. Where such member’s form of proxy appoints more than one proxy, the proportion of the
shareholding concerned to be represented by each proxy shall be specified in the form of proxy.
(b) A member who is a relevant intermediary is entitled to appoint more than two proxies to attend, speak and vote at the Annual
General Meeting, but each proxy must be appointed to exercise the rights attached to a different share or shares held by such
member. Where such member’s form of proxy appoints more than two proxies, the number and class of shares in relation to
which each proxy has been appointed shall be specified in the form of proxy.
“Relevant intermediary” has the meaning ascribed to it in Section 181 of the Companies Act, Chapter 50 of Singapore.
3. A proxy need not be a member of the Bank.
4. The instrument appointing a proxy or proxies must be deposited at the Share Registration Office of the Bank at M & C Services
Private Limited, 112 Robinson Road #05-01, Singapore 068902, not less than 72 hours before the time appointed for holding the
Annual General Meeting.
Personal Data Privacy:
By submitting an instrument appointing a proxy(ies) and/or representative(s) to attend, speak and vote at the Annual General Meeting
and/or any adjournment thereof, a member of the Bank (i) consents to the collection, use and disclosure of the member’s personal data
by the Bank (or its agents or service providers) for the purpose of the processing, administration and analysis by the Bank (or its agents
or service providers) of proxies and representatives appointed for the Annual General Meeting (including any adjournment thereof)
and the preparation and compilation of the attendance lists, minutes and other documents relating to the Annual General Meeting
(including any adjournment thereof), and in order for the Bank (or its agents or service providers) to comply with any applicable laws,
listing rules, take-over rules, regulations and/or guidelines (collectively, the “Purposes”), (ii) warrants that where the member discloses
the personal data of the member’s proxy(ies) and/or representative(s) to the Bank (or its agents or service providers), the member has
obtained the prior consent of such proxy(ies) and/or representative(s) for the collection, use and disclosure by the Bank (or its agents
or service providers) of the personal data of such proxy(ies) and/or representative(s) for the Purposes, and (iii) agrees that the member
will indemnify the Bank in respect of any penalties, liabilities, claims, demands, losses and damages as a result of the member’s breach
of warranty.
Explanatory Notes on Routine and Special Business
Ordinary Resolutions 2(a), (b) and (c)
Resolutions 2(a), (b) and (c) are to re-elect Directors who are retiring by rotation.
(a) In relation to Resolution 2(a), there are no relationships (including immediate family relationships) between Mr Ooi Sang Kuang and
the other Directors of the Bank.
(b) In relation to Resolution 2(b), there are no relationships (including immediate family relationships) between Mr Lai Teck Poh and
the other Directors of the Bank.
(c) In relation to Resolution 2(c), there are no relationships (including immediate family relationships) between Mr Pramukti Surjaudaja
and the other Directors of the Bank.
Please refer to the “Board of Directors” section on pages 14 and 16 and “Board Composition and Guidance” section in the Corporate
Governance Report on page 66 of the Annual Report 2017 for more information on these Directors (including information, if any, on the
relationships between these Directors and the Bank or its 10% shareholders).

Ordinary Resolution 3
Resolution 3 is to re-elect a Director who is retiring under Article 104 of the Bank’s Constitution.
In relation to Resolution 3, there are no relationships (including immediate family relationships) between Mr Chua Kim Chiu and the
other Directors of the Bank.
Please refer to the “Board of Directors” section on page 14 and “Board Composition and Guidance” section in the Corporate Governance
Report on page 66 of the Annual Report 2017 for more information on this Director (including information, if any, on the relationships
between this Director and the Bank or its 10% shareholders).
Ordinary Resolution 5(a)
Resolution 5(a) is to authorise the payment of S$2,979,000 as Directors’ fees to the non-executive Directors of the Bank for the
financial year ended 31 December 2017 (“FY 2017”). This is lower than the amount of S$3,121,000 paid for the financial year ended
31 December 2016 largely because there were fewer meetings held during the year. The fees include pro-rated fees payable to
Dr Teh Kok Peng. Dr Teh ceased to be a Director of the Bank on 1 July 2017. Details of the Directors’ fee structure can be found on
page 68 of the Annual Report 2017.
Ordinary Resolution 5(b)
Resolution 5(b) is to authorise the Directors to issue ordinary shares of the Bank to the non-executive Directors as part of their
remuneration for FY 2017.
A non-executive Director of the Bank will be eligible for an award of ordinary shares if he has served for the entire FY 2017, with the
number of ordinary shares to be issued to a non-executive Director of the Bank who has served for less than the entire FY 2017 to be
pro-rated accordingly, based on the length of his service during FY 2017.
The non-executive Directors who are eligible for, and will receive, the award of ordinary shares as part of their remuneration for
FY 2017 are Mr Ooi Sang Kuang, Mr Chua Kim Chiu, Ms Christina Hon Kwee Fong (Christina Ong), Mr Lai Teck Poh, Dr Lee Tih Shih,
Mr Quah Wee Ghee, Mr Pramukti Surjaudaja, Mr Tan Ngiap Joo, Dr Teh Kok Peng and Mr Wee Joo Yeow.
It is proposed that, for FY 2017, 6,000 ordinary shares be issued to each non-executive Director named above (2016: 6,000 ordinary
shares), save that 1,693 ordinary shares are proposed to be issued to Mr Chua Kim Chiu (who was appointed as a non-executive Director
of the Bank on 20 September 2017) and 2,975 ordinary shares are proposed to be issued to Dr Teh Kok Peng (who stepped down as a
non-executive Director of the Bank on 1 July 2017). The proposed award of ordinary shares is in addition to the Directors’ fees in cash to
be proposed under Resolution 5(a).
The issue of ordinary shares under Resolution 5(b) will be made pursuant to Article 143 of the Constitution of the Bank by way of the
issue of bonus shares for which no consideration is payable. Such ordinary shares will, upon issue, rank pari passu with the existing
ordinary shares of the Bank. The Singapore Exchange Securities Trading Limited (the “SGX-ST”) has given in-principle approval for the
listing and quotation of such new ordinary shares. Such approval is subject to (a) compliance with the SGX-ST’s listing requirements,
and (b) shareholders’ approval for the issuance of such new ordinary shares in compliance with Listing Rule 804. The SGX-ST’s
in-principle approval is not to be taken as an indication of the merits of such new ordinary shares, the Bank and/or its subsidiaries.
The SGX-ST assumes no responsibility for the correctness of any of the statements or opinions made in this explanatory note to
Resolution 5(b).
The non-executive Directors (including Dr Teh Kok Peng) who will each, subject to shareholders’ approval, be awarded ordinary shares
as part of their remuneration for FY 2017, will abstain from voting in respect of, and will procure their associates to abstain from voting
in respect of, Resolution 5(b).

Resolution 7 is to authorise the Directors from the date of the forthcoming Annual General Meeting until the next Annual General
Meeting to issue ordinary shares of the Bank and/or to make or grant instruments (such as warrants or debentures) convertible into
ordinary shares (“Instruments”), and to issue ordinary shares in pursuance of such Instruments, up to a number not exceeding fifty
per cent. (50%) of the total number of issued ordinary shares of the Bank excluding treasury shares and subsidiary holdings, with
a sub-limit of ten per cent. (10%) for issues other than on a pro rata basis to shareholders of the Bank.
For the purpose of determining the aggregate number of ordinary shares that may be issued, the total number of issued ordinary shares
of the Bank excluding treasury shares and subsidiary holdings shall be based on the total number of issued ordinary shares of the Bank
excluding treasury shares and subsidiary holdings at the time this Resolution is passed, after adjusting for (1) new ordinary shares
arising from the conversion or exercise of any convertible securities or share options or vesting of share awards which are outstanding
or subsisting at the time this Resolution is passed, and (2) any subsequent bonus issue, consolidation or subdivision of ordinary shares.
For the avoidance of doubt, any consolidation or subdivision of ordinary shares of the Bank will require shareholders’ approval. As at
7 March 2018 (the “Latest Practicable Date”), the Bank had 8,780,033 treasury shares and no subsidiary holdings.
The Directors will only issue ordinary shares and/or Instruments under this Resolution if they consider it necessary and in the interests
of the Bank.
Resolution 8 is to authorise the Directors to (i) offer and grant options, and allot and issue ordinary shares, in accordance with the
provisions of the OCBC Share Option Scheme 2001 (the “2001 Scheme”), and/or (ii) grant rights to acquire, and allot and issue, ordinary
shares in accordance with the provisions of the OCBC Employee Share Purchase Plan (the “Plan”). Although the Rules of the 2001
Scheme provide that the aggregate number of new ordinary shares which may be issued pursuant to the 2001 Scheme shall not exceed
10 per cent. (10%) of the total number of issued ordinary shares of the Bank from time to time, and the Rules of the Plan provide that
the aggregate number of new ordinary shares which may be issued pursuant to the Plan, when aggregated with the aggregate number
of new ordinary shares which may be issued pursuant to the 2001 Scheme, shall not exceed 15 per cent. (15%) of the total number of
issued ordinary shares of the Bank from time to time, Resolution 8 provides for a lower limit of 5 per cent. (5%) of the total number
of issued ordinary shares of the Bank excluding treasury shares and subsidiary holdings from time to time, as the Bank does not
anticipate that it will require a higher limit before the next Annual General Meeting.
Resolution 9 is to authorise the Directors to issue ordinary shares pursuant to the Oversea-Chinese Banking Corporation Limited Scrip
Dividend Scheme to members who, in respect of a qualifying dividend, have elected to receive scrip in lieu of the cash amount of that
qualifying dividend.
Resolution 10 is to renew the mandate to allow the Bank to purchase or otherwise acquire its issued ordinary shares, on the terms and
subject to the conditions set out in this Resolution.
The Bank intends to use its internal sources of funds to finance its purchase or acquisition of ordinary shares. The amount of financing
required for the Bank to purchase or acquire its ordinary shares, and the impact on the Bank’s financial position, cannot be ascertained
as at the date of this Notice as these will depend on whether the ordinary shares are purchased or acquired out of capital or profits of
the Bank, the number of ordinary shares purchased or acquired, the price at which such ordinary shares were purchased or acquired and
whether the ordinary shares purchased or acquired are held in treasury or cancelled.

Based on the existing issued ordinary shares of the Bank as at the Latest Practicable Date, the purchase by the Bank of 5% of its issued
ordinary shares (disregarding the ordinary shares held in treasury) will result in the purchase or acquisition of 209,250,221 ordinary shares.
Assuming that the Bank purchases or acquires the 209,250,221 ordinary shares at the Maximum Price, the maximum amount of funds
required is approximately:
(a) (in the case of market purchases of ordinary shares) S$2,891.84 million based on S$13.82 for one ordinary share (being the price
equivalent to 5% above the Average Closing Price of the ordinary shares traded on the SGX-ST for the five consecutive market days
immediately preceding the Latest Practicable Date); and
(b) (in the case of off-market purchases of ordinary shares) S$3,029.94 million based on S$14.48 for one ordinary share (being the price
equivalent to 10% above the Average Closing Price of the ordinary shares traded on the SGX-ST for the five consecutive market days
immediately preceding the Latest Practicable Date).
The financial effects of the purchase or acquisition of such ordinary shares by the Bank pursuant to the proposed Share Purchase
Mandate on the audited financial statements of the Group and the Bank for the financial year ended 31 December 2017 based on these
assumptions are set out in paragraph 2.7 of the Bank’s Letter to Shareholders dated 6 April 2018 (the “Letter”).
Please refer to the Letter for more details.

PROXY FORM
IMPORTANT:
Multiple Proxies
1. R
elevant intermediaries as defined in Section 181 of the Companies Act, Chapter 50 of Singapore may
appoint more than two proxies to attend, speak and vote at the Annual General Meeting.
OVERSEA-CHINESE BANKING CORPORATION LIMITED CPF/SRS Investors

2. This form of proxy is not valid for use and shall be ineffective for all intents and purposes if used or
(Incorporated in Singapore) purported to be used by CPF/SRS investors who hold ordinary shares of the Bank through their CPF/SRS
funds. CPF/SRS investors should contact their respective Agent Banks/SRS Operators if they have any
Company Registration Number: 193200032W queries regarding their appointment as proxies.
Personal Data
3. B
y submitting an instrument appointing a proxy(ies) and/or representative(s), the shareholder accepts
and agrees to the personal data privacy terms set out in the Notice of Annual General Meeting dated
6 April 2018.
Management Presentation
4. A presentation by Management on the Group’s financial performance will commence at 1.30 p.m. and
end at 2.15 p.m. prior to the commencement of the Annual General Meeting.
I/We, (Name) ___________________________________________________________________________________________________
(NRIC/Passport/Co. Reg. No.) ________________________________________of (Address) _______________________________________
______________________________________________________________________________________________________________
being a shareholder/shareholders of Oversea-Chinese Banking Corporation Limited (the “Bank”), hereby appoint
Name Address NRIC/Passport No. Proportion of Shareholdings (%)
and/or (delete as appropriate)
as my/our proxy/proxies to attend, speak and vote for me/us on my/our behalf at the Annual General Meeting of the Bank to be held at Sands
Expo & Convention Centre, Level 4, Roselle and Simpor Ballrooms, 10 Bayfront Avenue, Singapore 018956, on Monday, 30 April 2018 at 2.30
p.m. and at any adjournment thereof.
I/We have indicated with an "X" in the appropriate box against each item below how I/we wish my/our proxy/proxies to vote. If no specific
direction as to voting is given or in the event of any item arising not summarised below, my/our proxy/proxies may vote or abstain at the
discretion of my/our proxy/proxies.
No. Ordinary Resolutions For Against

Routine Business
1 Adoption of Directors’ statement and audited financial statements for the financial year ended
31 December 2017 and Auditors’ report
2(a) Re-election of Mr Ooi Sang Kuang
2(b) Re-election of Mr Lai Teck Poh
2(c) Re-election of Mr Pramukti Surjaudaja
3 Re-election of Mr Chua Kim Chiu
4 Approval of final one-tier tax exempt dividend
5(a) Approval of amount proposed as Directors’ fees in cash
5(b) Approval of allotment and issue of ordinary shares to the non-executive Directors
6 Re-appointment of Auditors and fixing their remuneration
Special Business
7 Authority to issue ordinary shares, and make or grant instruments convertible into
ordinary shares
8 Authority to grant options and/or rights to subscribe for ordinary shares, and allot and issue
ordinary shares (OCBC Share Option Scheme 2001 and OCBC Employee Share Purchase Plan)
9 Authority to allot and issue ordinary shares pursuant to OCBC Scrip Dividend Scheme
10 Approval of renewal of Share Purchase Mandate
Note: Voting will be conducted by poll.
Dated this ____________ day of _____________ 2018 Total Number of Ordinary Shares Held
___________________________________________
Signature(s) of Shareholder(s) or Common Seal
IMPORTANT: PLEASE READ NOTES OVERLEAF
NOTES:
1. Please insert the total number of ordinary shares (“Shares”) held by you. If you have Shares entered against your name in the Depository Register (maintained by The Central Depository (Pte) Limited), you
should insert that number of Shares. If you have Shares registered in your name in the Register of Members (maintained by or on behalf of the Bank), you should insert that number of Shares. If you have
Shares entered against your name in the Depository Register and Shares registered in your name in the Register of Members, you should insert the aggregate number of Shares. If no number is inserted,
the instrument appointing a proxy or proxies shall be deemed to relate to all the Shares held by you.
2. (a) An ordinary shareholder (“Shareholder”) of the Bank who is not a relevant intermediary is entitled to appoint not more than two proxies to attend, speak and vote at the Annual General Meeting.
Where such Shareholder’s form of proxy appoints more than one proxy, the proportion of the shareholding concerned to be represented by each proxy shall be specified in the form of proxy.
(b) A Shareholder who is a relevant intermediary is entitled to appoint more than two proxies to attend, speak and vote at the Annual General Meeting, but each proxy must be appointed to exercise the
rights attached to a different share or shares held by such Shareholder. Where such Shareholder’s form of proxy appoints more than two proxies, the number and class of shares in relation to which
each proxy has been appointed shall be specified in the form of proxy.
“Relevant intermediary” has the meaning ascribed to it in Section 181 of the Companies Act, Chapter 50 of Singapore.
3. A proxy need not be a Shareholder of the Bank.
4. The instrument appointing a proxy or proxies must be deposited at the Share Registration Office of the Bank at M & C Services Private Limited, 112 Robinson Road #05-01, Singapore 068902, not less than
72 hours before the time set for holding the Annual General Meeting. Completion and return of the instrument appointing a proxy or proxies by a Shareholder does not preclude him from attending and
voting in person at the Annual General Meeting if he finds that he is able to do so. In such event, the relevant instrument appointing a proxy or proxies will be deemed to be revoked.
5. The instrument appointing a proxy or proxies must be under the hand of the appointor or of his attorney duly authorised in writing. Where the instrument appointing a proxy or proxies is executed by a
corporation, it must be executed either under its seal or under the hand of a director or an officer or attorney duly authorised.
6. A corporation which is a Shareholder may authorise by resolution of its directors or other governing body such person as it thinks fit to act as its representative at the Annual General Meeting, in accordance
with Section 179 of the Companies Act, Chapter 50 of Singapore.
7. The Bank shall be entitled to reject the instrument appointing a proxy or proxies if it is incomplete, improperly completed or illegible or where the true intentions of the appointor are not ascertainable
from the instructions of the appointor specified in the instrument appointing a proxy or proxies (including any related attachment). In addition, in the case of a Shareholder whose Shares are entered in the
Depository Register, the Bank may reject any instrument appointing a proxy or proxies lodged if the Shareholder, being the appointor, is not shown to have Shares entered against his name in the Depository
Register as at 72 hours before the time appointed for holding the Annual General Meeting, as certified by The Central Depository (Pte) Limited to the Bank.
1st fold here
2nd fold here
Postage will
be paid by
addressee.
For posting in
Singapore only.
BUSINESS REPLY SERVICE

PERMIT NO. 07548

c/o M & C Services Private Limited
112 Robinson Road
#05-01
Singapore 068902
3rd fold along this line and glue overleaf. Do not staple. Glue all sides firmly.
CORPORATE PROFILE CORPORATE INFORMATION
OCBC Bank is the longest established Singapore bank, BOARD OF DIRECTORS RISK MANAGEMENT
formed in 1932 from the merger of three local banks, Mr Ooi Sang Kuang COMMITTEE
the oldest of which was founded in 1912. It is now the Chairman Mr Lai Teck Poh
second largest financial services group in Southeast Chairman
Asia by assets and one of the world’s most highly-rated Mr Chua Kim Chiu
Mr Lai Teck Poh Mr Ooi Sang Kuang
banks, with an Aa1 rating from Moody’s. Recognised
Dr Lee Tih Shih Mr Chua Kim Chiu
for its financial strength and stability, OCBC Bank Ms Christina Ong Mr Pramukti Surjaudaja
is consistently ranked among the World’s Top 50 Safest Mr Quah Wee Ghee Mr Samuel N. Tsien
Banks by Global Finance and has been named Best Mr Pramukti Surjaudaja Mr Wee Joo Yeow
Managed Bank in Singapore and the Asia Pacific by Mr Tan Ngiap Joo
The Asian Banker. Mr Samuel N. Tsien SECRETARIES
Mr Wee Joo Yeow Mr Peter Yeoh
OCBC Bank and its subsidiaries offer a broad array of Ms Sherri Liew
commercial banking, specialist financial and wealth NOMINATING COMMITTEE
management services, ranging from consumer, Mr Tan Ngiap Joo REGISTERED OFFICE
Chairman 63 Chulia Street
corporate, investment, private and transaction
#10-00 OCBC Centre East
banking to treasury, insurance, asset management
Mr Ooi Sang Kuang Singapore 049514
and stockbroking services. Mr Lai Teck Poh Tel: (65) 6318 7222 Main Line
Dr Lee Tih Shih Fax: (65) 6534 3986
OCBC Bank’s key markets are Singapore, Malaysia, Mr Wee Joo Yeow Email: [email protected]
Indonesia and Greater China. It has more than Website: www.ocbc.com
600 branches and representative offices in 18 countries EXECUTIVE COMMITTEE
and regions. These include over 330 branches and Mr Ooi Sang Kuang SHARE REGISTRATION OFFICE
offices in Indonesia under subsidiary Bank OCBC NISP, Chairman M & C Services Private Limited
and more than 100 branches and offices in Hong Kong, 112 Robinson Road #05-01
China and Macao under OCBC Wing Hang. Dr Lee Tih Shih Singapore 068902
Mr Quah Wee Ghee Tel: (65) 6228 0505
Mr Tan Ngiap Joo
OCBC Bank’s private banking services are provided Mr Samuel N. Tsien AUDITORS
by its wholly-owned subsidiary Bank of Singapore, Mr Wee Joo Yeow KPMG LLP
which operates on a unique open-architecture product 16 Raffles Quay #22-00
platform to source for the best-in-class products to AUDIT COMMITTEE Hong Leong Building
meet its clients’ goals. Mr Chua Kim Chiu Singapore 048581
Chairman Tel: (65) 6213 3388
OCBC Bank’s insurance subsidiary, Great Eastern
Holdings, is the oldest and most established life Mr Lai Teck Poh PARTNER IN CHARGE
insurance group in Singapore and Malaysia. Its asset Ms Christina Ong OF THE AUDIT
Mr Tan Ngiap Joo Mr Leong Kok Keong
management subsidiary, Lion Global Investors, is
one of the largest private sector asset management (Year of Appointment: 2016)
REMUNERATION
companies in Southeast Asia.
COMMITTEE
Mr Wee Joo Yeow
For more information, please visit www.ocbc.com. Chairman
Mr Ooi Sang Kuang

Ms Christina Ong
Mr Quah Wee Ghee
Mr Tan Ngiap Joo
Designed by: Sycamore & Co.

Printed by: Medialink Printing Services Pte Ltd
Company Registration Number: 193200032W

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BUILDING ON OUR

CORPORATE STRATEGY FOR

ANNUAL REPORT 2017

Our Purpose & Our Values Inside Front Cover

SINGAPORE MALAYSIA INDONESIA GREATER CHINA

Advancements INVESTMENT IN TECHNOLOGY AND PEOPLE

SUSTAINABLE BUSINESS PRACTICES

FAIR DEALING RESPONSIBLE FINANCING STRONG GOVERNANCE

COMMUNITY DEVELOPMENT INCLUSIVE WORKPLACE

Aa- Aa1 Aa-

2 OCBC ANNUAL REPORT 2017

Our four core markets generate substantial business for us

SUSTAINED EARNINGS MOMENTUM FROM

DEMONSTRATED STRENGTHS IN OUR CORE COMPETENCIES

1.5% >300% 78% 49.2%

7.9 +31% 11.3%

AT THE FOREFRONT OF FINTECH INNOVATION IN SINGAPORE

First AI-powered First AI-powered Among the first to tap AI

BUILDING ON OUR CORPORATE STRATEGY FOR SUSTAINABLE GROWTH 3

Mr Ooi Sang Kuang

2017 marked the 85th anniversary of OCBC Bank’s incorporation in 1932.

4 OCBC ANNUAL REPORT 2017

Net Profit Total Income Cost-to-Income Ratio Earnings per share

2016 2017 2016 2017 2016 2017 2016 2017

CUSTOMER LOANS CUSTOMER DEPOSITS RETURN ON EQUITY BASEL III FULLY

2016 2017 2016 2017 2016 2017 2016 2017

Please refer to Management Discussion and Analysis on page 134.

BUILDING ON OUR CORPORATE STRATEGY FOR SUSTAINABLE GROWTH 5

SUPERIOR AND DIFFERENTIATED CUSTOMER EXPERIENCE

CONSUMER BANKING/WEALTH MANAGEMENT

ASSETS UNDER MANAGEMENT

1,156 96% 1.08

2016 2017 2016 2017 2016 2017 2016 2017

6 OCBC ANNUAL REPORT 2017

Mr Lee Hsien Loong, the

BUILDING ON OUR CORPORATE STRATEGY FOR SUSTAINABLE GROWTH 7

POSITIONING FOR THE FUTURE WITH CONFIDENCE

COMMITMENT TO CORPORATE VALUES

LEVERAGING GROUP SYNERGIES THROUGH STRONG COLLABORATION AND NETWORK OPTIMISATION

8 OCBC ANNUAL REPORT 2017

CREATING THE WORKFORCE OF THE FUTURE

OPERATING SUSTAINABLY AND SUPPORTING COMMUNITIES

NUMBER OF AMOUNT DONATED NUMBER OF NUMBER OF

2016 2017 2016 2017 2016 2017 2016 2017

BUILDING ON OUR CORPORATE STRATEGY FOR SUSTAINABLE GROWTH 9

10 OCBC ANNUAL REPORT 2017

Ooi Sang Kuang Samuel N. Tsien

BUILDING ON OUR CORPORATE STRATEGY FOR SUSTAINABLE GROWTH 11

Financial year ended 31 December 2017 2016 2015 2014 2013

Balance sheets (S$ million)

Per ordinary share

12 OCBC ANNUAL REPORT 2017

14% 6% 19% 5,602

Profit Attributable to Assets, Excluding Life Assurance Ordinary Shareholders’ Equity

102.5 19% 3% 14.8 1.2

Return on Assets (%) Tier 1 CAR (%) Total CAR (%)

BUILDING ON OUR CORPORATE STRATEGY FOR SUSTAINABLE GROWTH 13

Other Directorships and Appointments Academic and Professional Qualifications

Advancements INVESTMENT IN TECHNOLOGY AND PEOPLE

FAIR DEALING RESPONSIBLE FINANCING STRONG GOVERNANCE

COMMUNITY DEVELOPMENT INCLUSIVE WORKPLACE

3. Mr Darren Tan

5. Mr Vincent Choo

9. Ms Kng Hwee Tin

11. Mr Tan Wing Ming

12. Mr Ong Eng Bin

14. Mr Gan Kok Kim

17. Mr Jason Ho

18. Mr Lim Khiang Tong

20. Ms Loretta Yuen

22. Mr Vincent Soh

24. Ms Koh Ching Ching

WITH OUR F inancing for trade, business loans

lower economic growth