No plans to erode excess capital given market uncertainty: OCBC chairman

OCBC has no plans to reduce its capital given uncertain and volatile market conditions, said its board chairman Andrew Lee at the bank’s annual general meeting (AGM) on Tuesday (Apr 25).

In response to shareholder queries on how Basel IV – the latest set of capital requirements for banks globally – will affect the lender’s Common Equity Tier 1 (CET1) ratio, he said: “For the moment, we have no intentions of eroding this layer of perceived excess capital.”

Some shareholders at the AGM noted that OCBC had the highest CET1 ratio – at 15.2 per cent at the end of its financial year 2022 – among the three local banks. As at Dec 31, 2022, DBS’ CET1 stood at 14.6 per cent, while UOB’s was 13.3 per cent.