OCBC is banking on a “focused strategy” in growing its business, particularly in the China and Asean region, the bank’s chief executive Helen Wong said.

The bank has long established a presence in China and is in good stead to gain from increased flows in investments, trade and wealth between Asean and China, she said at OCBC’s annual general meeting held virtually on Friday (Apr 22).

Wong was responding to a shareholder’s question on whether the lender plans to be “more aggressive” in pursuing growth.

“I foresee OCBC becoming a takeover target if it continues to grow so slowly, compared to many other banks,” the shareholder had commented.

Wong cautioned against an apples-to-apples comparison with peer banks.

“We always look at our competitors. Sometimes, you can have a direct comparison, but sometimes, you look at how we compete differently and potentially also in different markets,” she said.

She also highlighted how China-based customers, including multinational companies, are increasingly pursuing a “China plus one” strategy, whereby they are diversifying their investments into other parts of Asia, outside China.

Other shareholders expressed concern over OCBC’s business in China, in view of a slowdown in growth and the ongoing lockdowns due to the pandemic. 

Wong said OCBC continues to see China as a key growth engine for global economies in the long run. 

“We are looking at Greater China in a longer-term growth manner… We will be, of course, cautious, but that should not change our overall long-term strategy for China,” she said.

Greater China’s contribution to the banking group’s pre-tax profit has grown from 6 per cent (S$208 million) in 2013 to 22 per cent (S$1.24 billion) in 2021. 

Loans to Greater China have increased from 16 per cent (S$27 billion) in 2013, to account for 26 per cent (S$74 billion) of total group loans last year.

Another shareholder asked why OCBC did not participate in the acquisition of Citigroup’s consumer banking assets, unlike its local peers DBS and UOB. 

Wong noted that OCBC’s focus in Asean markets in which Citi’s assets were up for sale is on corporate rather than consumer banking.

“We do look at opportunities that are available. We do want to see whether we can expand inorganically on assets that suit our strategy,” she said.

OCBC shares closed at S$12.11 on Friday after the meeting, up 0.3 per cent or S$0.03.