United Overseas Bank Limited · SGX:U11
United Overseas Bank — FY2011 Earnings Presentation
28 slides from United Overseas Bank's earnings presentation, Feb 23, 2012
Slide 1: UOB Group Full Year 2011 Financial Highlights
UOB Group Full Year 2011 Financial Highlights Lee Wai Fai Group Chief Financial Officer 23 February 2012 Disclaimer : This material that follows is a presentation of general background information about the Bank’s activities current at the date of the presentation. It is information given in summary
Slide 2: UOB Group NPAT at $2.3 billion in FY2011
UOB Group NPAT at $2.3 billion in FY2011 2011 2010 +/(-) $m $m % Net interest income 3,678 3,532 4.1 Fee and commission income 1,318 1,163 13.3 Other non-interest income 703 811 (13.4) Total income 5,699 5,507 3.5 Less: Total expenses 2,450 2,258 8.5 Operating profit 3,248 3,249 - Less: Intangible a
Slide 3: Net Profit Up 7% QoQ to $558 million
Net Profit Up 7% QoQ to $558 million 4Q11 3Q11 +/(-) 4Q10 +/(-) $m $m % $m % Net interest income 978 915 6.9 865 13.1 Fee and commission income 327 323 1.0 310 5.4 Other non-interest income 173 122 41.6 214 (19.2) Total income 1,478 1,361 8.6 1,389 6.4 Less: Total expenses 625 631 (1.0) 620 0.8 Oper
Slide 4: NII and NIM Improved for the Quarter on Loans Growth
NII and NIM Improved for the Quarter on Loans Growth Net Interest Income (NII) and Margin 3.09% 3.02% 2.88% 2.68% 2.57% 2.47% 2.41% 2.31% 2.31% 2.27% 2.36% 2.09% 1.92% 1.91% 1.90% 1.92% 1.89% 1.95% 0.93% 1.21% 0.88% 0.97% 0.94% 1.01% 1.13% 0.76% 0.85% 3,576 3,674 3,678 3,532 555 686 587 634 978 865
Slide 5: Fee Income Strong, Steady Through 2011
Fee Income Strong, Steady Through 2011 Non-Interest Income (Non-NII) and Non-NII Ratio 39.1% 44.7% 35.5% 38.7% 36.5% 32.0% 32.8% 33.8% 31.9% 35.9% 37.7% 22.3% 23.2% 23.5% 23.8% 22.1% 21.1% 23.1% 20.8% 18.1% 19.8% 20.1% 1,975 2,021 1,675 1,732 703 811 524 551 524 580 755 500 446 214 221 186 173 122 1
Slide 6: Expenses Well Controlled to Support Business Growth
Expenses Well Controlled to Support Business Growth Operating Expenses and Expense / Income Ratio 43.0% 41.0% 46.4% 39.0% 38.4% 44.6% 42.6% 42.3% 41.0% 38.9% 39.6% 2,450 2,258 2,050 2,074 1,047 1,016 968 959 620 612 631 625 583 290 244 257 271 275 1,242 1,403 1,082 1,116 330 339 355 360 350 2008 200
Slide 7: Loans Credit Quality Continued to be Stable
Loans Credit Quality Continued to be Stable Impairment Charges on Loans 76bp 62bp 47bp 35bp 30bp 59bp 31bp 30bp 30bp 30bp 33bp 46bp 18bp 12bp 23bp 11bp 7bp 8bp 604 128 324 81 190 163 34 26 22 2008 2009 2010 2011 4Q10 1Q11 2Q11 3Q11 4Q11 Individual Impairment Charges on Loans ($m) Individual Impairme
Slide 8: Performance by Business Segment
Performance by Business Segment 2011 5% 2011 2010 +/(-) 12% 34% Core Segment Operating Profit $m $m % Group Retail (GR) 1,100 1,088 1.1 53% Group Wholesale (GW) 1,712 1,452 17.9 Elim (4)% Global Markets & Investment Mgt (GMIM) 394 692 (43.1) 2010 Others 158 108 46.3 3% Elimination (116) (91) (27.5)
Slide 9: Regional Franchise Continued to Grow, Operating Profit Rose 14% YoY
Regional Franchise Continued to Grow, Operating Profit Rose 14% YoY 2011 At 8% 38% constant 5% Core FX rate 6% +/(-) 4% Operating 2011 2010 +/(-) 62% Profit $m $m % % 15% Singapore 2,008 2,125 (5.5) (5.5) Regional: 967 883 9.5 13.8 2010 Malaysia 506 453 11.7 15.0 Thailand 120 131 (8.5) (4.5) 4% 7% 3
Slide 10: Regional Countries Loans Growth Exceeded Singapore
Regional Countries Loans Growth Exceeded Singapore 2011 2011 2010 +/(-) 4Q11 3Q11 +/(-) 6% 6% 4% Gross Loans $m $m % $m $m % 6% Singapore 92,268 75,534 22.2 92,268 90,156 2.3 14% 64% Regional: 42,725 31,598 35.2 42,725 41,184 3.7 Malaysia 20,712 15,278 35.6 20,712 19,129 8.3 Thailand 7,818 7,050 10.
Slide 11: Deposits Built Up Significantly, Reduced Reliance on Interbank Funding
Deposits Built Up Significantly, Reduced Reliance on Interbank Funding 2011 2010 +/(-) 4Q11 3Q11 +/(-) 2011 5% $m $m % $m $m % 4% 6% 4% Singapore 115,717 102,467 12.9 115,717 112,917 2.5 13% 68% Regional: 44,944 32,537 38.1 44,944 38,242 17.5 Malaysia 21,567 16,230 32.9 21,567 19,215 12.2 Thailand *
Slide 12: Liquidity Position Remained Strong and Well Managed, Deposits Kept Pace
Liquidity Position Remained Strong and Well Managed, Deposits Kept Pace Customer Loans, Deposits and L/D Ratio 82.1% 86.6% 86.9% 83.3% 79.0% 158.4 169.5 142.3 146.6 148.4 137.6 141.2 120.2 128.5 112.4 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Net Customer Loans ($b) Customer Deposits ($b) Loans / Deposits
Slide 13: Loans quality Improved, NPL Trending Down
Loans quality Improved, NPL Trending Down NPL Ratio Improved to 1.4% NPL ($m) 2,155 2,002 1,930 2,109 2,020 NPL Ratio 1.8% 1.6% 1.5% 1.5% 1.4% 387 354 494 61 356 537 80 60 30 31 106 98 85 31 409 83 311 293 297 309 373 355 336 347 346 845 816 817 855 714 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Singapore M
Slide 14: High Impairment Coverage Maintained
High Impairment Coverage Maintained Total Loan Impairment 2,682 2,675 2,711 2,800 2,752 ($m) 250.7% 235.3% 247.6% 227.8% 238.5% 124.5% 133.6% 140.5% 132.8% 136.2% 866 837 847 770 930 1,752 1,809 1,874 1,953 1,982 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Collective Impairment ($m) Individual impairment ($m
Slide 15: Capital Ratios Remained Strong
Capital Ratios Remained Strong Capital Adequacy Ratios 19.8% Total CAR 19.2% 19.2% 17.5% 16.7% 15.3% 14.9% Tier 1 CAR 14.5% 14.0% 13.5% Core Tier 1 CAR 13.3% 13.0% 12.6% 12.3% 11.9% Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 $'m Core Tier 1 Capital 14,213 14,676 14,954 15,249 15,865 Tier 1 Capital 16,362 16
Slide 16: Final Dividend of 40 Cents Recommended
Final Dividend of 40 Cents Recommended 10.0 40.0 40.0 40.0 40.0 20.0 20.0 20.0 20.0 2008 2009 2010 2011 Net Netdividend dividend per perordinary ordinaryshare share(¢) (¢) Interim Interim Final Final Special Special Payout amount ($m) 903 903 1,077 944 Payout ratio (%) 47 48 44 41 16
Slide 17: In Summary, 2011 Results Showed:
In Summary, 2011 Results Showed: Group NPAT achieved $2.3 billion for FY2011 4Q11 NPAT at $558 million, up 7% QoQ NII rose 6.9% in 4Q11 and 4.1% for FY2011 mainly on expanded loans volume; NIM increased 6bp to 1.95% in 4Q11. Fee income grew 13.3% for the year to $1.3 billion. Expenses continued to b
Slide 18: Investment Securities
Investment Securities Dec-11 Jun-11 $m $m Debt securities – bank Tier 1 998 1,336 Tier 2 614 760 Senior/Other 1,791 2,280 3,403 4,377 Debt securities – non bank 8,119 8,031 11,523 12,408 Equity securities 2,831 3,038 Total 14,354 15,446 Dec-11 Jun-11 Bank Non-bank Total Bank Non-bank Total Exposures
Slide 19: Singapore – Summarised Income Statement
Singapore – Summarised Income Statement 2011 2010 +/(-) 4Q11 3Q11 +/(-) $'m $'m % $'m $'m % Net interest income 2,049 2,077 (1.4) 537 499 7.6 Fee and commission income 792 715 10.8 187 193 (3.4) Other non-interest income 498 644 (22.6) 85 116 (26.4) Total income 3,339 3,436 (2.8) 809 808 0.1 Less: T
Slide 20: Singapore – Key Financial Indicators
Singapore – Key Financial Indicators 2011 2010 +/(-) 4Q11 3Q11 +/(-) % % % pt % % % pt Net interest margin 1.52 1.68 (0.16) 1.57 1.48 0.09 Non-NII / Total income 38.6 39.5 (0.9) 33.6 38.2 (4.6) Expense / Total income 39.9 38.1 1.8 39.0 43.8 (4.8) Customer loans (net) - $'m 90,483 73,729 22.7% 90,483
Slide 21: Malaysia – Summarised Income Statement
Malaysia – Summarised Income Statement 2011 2010 +/(-) 4Q11 3Q11 +/(-) RM'm RM'm % RM'm RM'm % Net interest income 1,355 1,163 16.5 366 346 5.8 Fee and commission income 417 363 14.9 111 107 3.7 Other non-interest income 173 147 17.7 55 22 >100.0 Total income 1,945 1,673 16.3 532 475 12.0 Less: Tota
Slide 22: Malaysia – Key Financial Indicators
Malaysia – Key Financial Indicators 2011 2010 +/(-) 4Q11 3Q11 +/(-) % % % pt % % % pt Net interest margin 2.59 2.87 (0.28) 2.51 2.53 (0.02) Non-NII / Total income 30.3 30.5 (0.2) 31.2 27.2 4.0 Expense / Total income 36.5 35.8 0.7 35.7 38.1 (2.4) Customer loans (net) - RM'm 49,636 35,901 38.3% 49,636
Slide 23: Thailand – Summarised Income Statement
Thailand – Summarised Income Statement 2011 2010 +/(-) 4Q11 3Q11 +/(-) THB'm THB'm % THB'm THB'm % Net interest income 8,183 6,977 17.3 2,240 2,075 8.0 Fee and commission income 2,300 2,021 13.8 608 609 (0.2) Other non-interest income 44 512 (91.4) 66 (3) >100.0 Total income 10,527 9,510 10.7 2,914
Slide 24: Thailand – Key Financial Indicators
Thailand – Key Financial Indicators 2011 2010 +/(-) 4Q11 3Q11 +/(-) % % % pt % % % pt Net interest margin 3.28 3.45 (0.17) 3.44 3.14 0.30 Non-NII / Total income 22.3 26.6 (4.3) 23.1 22.6 0.5 Expense / Total income 72.2 67.7 4.5 73.1 71.9 1.2 Customer loans (net) - THB'm 183,880 158,439 16.1% 183,880
Slide 25: Indonesia – Summarised Income Statement
Indonesia – Summarised Income Statement 2011 2010 +/(-) 4Q11 3Q11 +/(-) IDR'b IDR'b % IDR'b IDR'b % Net interest income 2,099 1,963 6.9 526 534 (1.5) Fee and commission income 629 418 50.5 157 158 (0.6) Other non-interest income 285 214 33.2 104 47 >100.0 Total income 3,013 2,595 16.1 787 739 6.5 Le
Slide 26: Indonesia – Key Financial Indicators
Indonesia – Key Financial Indicators 2011 2010 +/(-) 4Q11 3Q11 +/(-) % % % pt % % % pt Net interest margin 5.20 6.40 (1.20) 4.58 5.00 (0.42) Non-NII / Total income 30.3 24.4 5.9 33.2 27.7 5.5 Expense / Total income 57.7 52.0 5.7 62.0 57.4 4.6 Customer loans (net) - IDR'b 40,282 27,427 46.9% 40,282 3
Slide 27: Greater China – Summarised Income Statement
Greater China – Summarised Income Statement 2011 2010 +/(-) 4Q11 3Q11 +/(-) S$'m S$'m % S$'m S$'m % Net interest income 176 97 80.5 58 51 13.0 Fee and commission income 67 42 59.1 20 16 28.2 Other non-interest income 80 88 (9.0) 24 3 >100.0 Total income 323 227 41.9 102 71 44.6 Less: Total expenses
Slide 28: Greater China – Key Financial Indicators
Greater China – Key Financial Indicators 2011 2010 +/(-) 4Q11 3Q11 +/(-) % % % pt % % % pt Net interest margin 1.20 1.11 0.09 1.31 1.28 0.03 Non-NII / Total income 45.5 57.1 (11.6) 43.2 27.3 15.9 Expense / Total income 50.9 50.5 0.4 47.7 56.0 (8.3) Customer loans (net) - S$'m 8,361 5,231 59.8% 8,361