OCBC is looking to Greater China and Southeast Asia for a $2.2 billion boost in revenue

Singapore's Oversea-Chinese Banking Corporation has acceptable its sights connected "longer word opportunities" successful Greater China and Southeast Asia and expects the strategy to bring an further gross of $2.2 cardinal by 2025, CEO Helen Wong told CNBC connected Monday.

Southeast Asia's 2nd largest slope announced Monday that it volition beryllium unifying its brand crossed its halfway markets successful Greater China — which includes Hong Kong and Macao — arsenic good arsenic Southeast Asia.

"If you look astatine macro trends, Greater China and ASEAN unneurotic is going to proceed to lend much to the world's GDP growth," Wong told CNBC, referring to the 10-nation Association of South East Asian Nations bloc.

"If you look astatine the commercialized numbers for the past 4 years, China and ASEAN — they're increasing astatine a CAGR of 13%," she added. Compound yearly maturation rate is a measurement of annualized returns for an concern implicit a play of time, assuming profits are reinvested astatine the extremity of each year. 

In a media release, Wong said "the effects of China's reopening post-pandemic, the emergence of ASEAN for the China positive 1 strategy and different geopolitical factors" person amplified the imaginable concern flows betwixt the 2 regions.

As such, portion the OCBC has seen slowing economical maturation successful immoderate countries successful the region, Wong said she's assured it volition beryllium capable to seizure maturation arsenic it "puts our enactment together."

This volition beryllium done by improving however it deals with customers digitally, arsenic good arsenic improving the mode the slope captures customers and businesses, she said without offering much details.

She besides pointed retired that OCBC and its subsidiaries work the apical 7 markets successful ASEAN, and tin trust connected a beingness successful 17 cities successful the Greater China region, including Hong Kong, Macao and Taiwan, arsenic good arsenic its concern with the Bank of Ningbo.

Asked astir the bank's outlook for the adjacent fractional of 2023, Wong said it volition "probably volition beryllium rather stable."

She said the precocious involvement complaint situation has helped its involvement income, adjacent arsenic income from fees has fallen arsenic investors clasp backmost connected investing owed to the uncertain economical environment.

But OCBC has different gross streams that could lend to growth, specified arsenic security income, Wong said.

However, she besides acknowledged determination whitethorn beryllium uncertainty arsenic involvement rates could perchance stay astatine existent levels oregon beryllium "a small spot higher."

As a result, OCBC volition person to wage attraction to whether its recognition portfolio whitethorn beryllium impacted by prolonged precocious involvement rates. Also, if rates proceed to beryllium high, customers are apt to beryllium "a small spot connected the sidelines arsenic to their concern activities," Wong pointed out.

As a determination slope — Southeast Asia's 2nd largest — OCBC besides saw immoderate wealth travel successful from the illness of determination banks successful the U.S. earlier this year.

"Whenever determination are immoderate changes, immoderate weakness successful definite parts of the industry, determination is simply a formation to quality. So being a highly rated bank, sitting successful Asia, we bash spot immoderate of that caller wealth coming in," she said.

However, the nonsubjective is not lone to person the wealth travel in, but keeping the wealth with OCBC.

To that, Wong highlighted that the slope has to inquire itself: "Is determination immoderate acquisition learned? How does that really interaction customers? Are we equipped to service the customers arsenic wealth comes successful arsenic well?"

OCBC shares are higher by astir 9% successful the past 12 months, and closed astatine 12.30 Singapore dollars connected Monday.