Slide 1: UOB Group First Half 2014 Financial Highlights
UOB Group First Half 2014 Financial Highlights Lee Wai Fai Group Chief Financial Officer 31 July 2014 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 fo
Slide 2: Record 1H14 NPAT of $1.60 billion, 6.1% higher YoY
Record 1H14 NPAT of $1.60 billion, 6.1% higher YoY 1H14 1H13 +/(-) $m $m % Net interest income 2,234 1,979 12.9 Fee and commission income 824 889 (7.3) Other non-interest income 578 446 29.5 Total income 3,636 3,315 9.7 Less: Total expenses 1,542 1,421 8.5 Operating profit 2,094 1,894 10.6
Slide 3: New High 2Q14 NPAT, up 3.2% YoY and 2.5% QoQ
New High 2Q14 NPAT, up 3.2% YoY and 2.5% QoQ 2Q14 2Q13 +/(-) 1Q14 +/(-) $m $m % $m % Net interest income 1,124 1,016 10.7 1,110 1.3 Fee and commission income 410 436 (6.0) 414 (0.9) Other non-interest income 350 191 83.0 228 53.3 Total income 1,884 1,643 14.7 1,752 7.6 Less: Total ex
Slide 4: NII Rose 12.9% YoY and 1.3% QoQ on Strong Loan Growth
NII Rose 12.9% YoY and 1.3% QoQ on Strong Loan Growth Net Interest Income (NII) and Margin 2.41% 2.29% 2.13% 2.10% 2.10% 2.06% 2.05% 2.12% 2.06% 1.92% 1.87% 1.72% 1.72% 1.71% 1.74% 1.73% 1.71% 1.71% 0.97% 0.91% 0.76% 0.87% 0.77% 0.85% 0.90% 0.84% 0.73% 4,120 3,917 1,124 3,678 1,095 1,110 538 1,016 1
Slide 5: Non-Interest Income Increased with Improved T&I Income
Non-Interest Income Increased with Improved T&I Income Non-Interest Income (Non-NII) and Non-NII Ratio 39.7% 38.7% 38.6% 40.3% 35.5% 38.2% 37.1% 37.1% 36.7% 25.8% 23.1% 23.2% 22.7% 26.6% 24.4% 25.0% 23.6% 21.8% 2,578 2,600 2,021 760 1,070 870 628 618 647 642 703 1,402 350 191 211 212 228 578 1,508 1
Slide 6: Disciplined Cost Management with lower CIR YoY and QoQ
Disciplined Cost Management with lower CIR YoY and QoQ Operating Expenses and Expense / Income Ratio 44.2% 43.0% 43.8% 43.1% 41.7% 43.0% 42.3% 43.1% 42.4% 2,898 2,747 2,450 1,186 762 755 787 1,151 726 715 1,047 1,542 303 288 315 301 331 631 1,597 1,712 1,403 447 454 456 911 423 427 2011 2012 2013 1H
Slide 7: Pace Credit Costs to Loan Growth
Pace Credit Costs to Loan Growth Impairment Charges on Loans 30bp 30bp 30bp 32bp 32bp 32bp 30bp 30bp 30bp 30bp 12bp 8bp 9bp 19bp 10bp 11bp 2bp (0)bp 454 93 51 163 41 136 91 11 2011 2012 2013 1H14 (2) 2Q13 3Q13 4Q13 1Q14 2Q14 Individual Impairment Charges on Loans ($m) Individual Impairment Charges o
Slide 8: Performance by Business Segment
Performance by Business Segment 1H14 1H14 1H13 +/(-) 2% 13% Segment Operating Profit $m $m % 32% Group Retail (GR) 673 618 8.9 Group Wholesale Banking (GWB) 1,115 1,045 6.7 53% Global Markets & Investment Mgt (GMIM) 277 234 18.4 1H13 Others 29 (3) >100.0 12% 33% Total 2,094 1,894 10.6 55% GR GWB GMI
Slide 9: Overseas Operating Profit Contribution up 5.1% (FX Translation Excluded)
Overseas Operating Profit Contribution up 5.1% (FX Translation Excluded) 1H14 At 6% 9% constant 3% FX rate 5% Operating 1H14 1H13 +/(-) +/(-) 15% 62% Profit $m $m % % Singapore 1,303 1,091 19.4 19.4 Regional: 668 666 0.3 5.1 1H13 Malaysia 308 309 (0.3) 3.8 7% Thailand 111 109 2.3 10.6 9% Indonesia 6
Slide 10: Loans Increased to $193b, up 11.7% YoY and 2.4% QoQ
Loans Increased to $193b, up 11.7% YoY and 2.4% QoQ At At Jun-14 constant constant 5% FX rate FX rate 8% Jun-14 Jun-13 +/(-) +/(-) Mar-14 +/(-) +/(-) 3% 5% Gross Loans $b $b % % $b % % 14% 65% Singapore 126.1 113.7 10.9 10.9 123.1 2.5 2.5 Regional: 56.7 49.4 14.6 20.1 55.1 2.9 3.5 Malaysia 26.5 24.4
Slide 11: Stable Deposits Across Singapore and Region
Stable Deposits Across Singapore and Region At At Jun-14 constant constant FX rate FX rate Customer Jun-14 Jun-13 +/(-) +/(-) Mar-14 +/(-) +/(-) 7% 6% Deposits $b $b % % $b % % 3% 4% Singapore 143.9 137.6 4.6 4.6 146.3 (1.6) (1.6) 13% 67% Regional: 57.4 51.9 10.6 15.8 55.9 2.6 3.2 Malaysia 28.0 26.9
Slide 12: Stable Liquidity Position
Stable Liquidity Position Customer Loans, Deposits and LDR 85.3% 84.0% 83.4% 85.5% 87.8% 206.5 214.5 216.6 216.1 199.3 185.3 189.7 169.9 173.5 178.9 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Net Customer Loans ($b) Customer Deposits ($b) Loans / Deposits Ratio (LDR) (%) 12
Slide 13: Credit Quality Remained Sound
Credit Quality Remained Sound NPL ($m) 2,152 2,107 2,074 2,077 2,309 NPL Ratio 1.2% 1.2% 1.1% 1.1% 1.2% 524 613 589 531 537 30 149 43 30 29 29 141 88 105 256 124 201 203 211 210 431 392 411 414 397 812 919 748 771 781 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Singapore Malaysia Thailand Indonesia Greater C
Slide 14: Strong Impairment Coverage
Strong Impairment Coverage Total Loan Impairment 3,000 3,050 3,121 3,327 3,445 ($m) 298.9% 316.3% 305.1% 264.3% 270.6% 139.4% 144.8% 150.5% 160.2% 149.2% 779 834 806 798 855 2,548 2,611 2,145 2,244 2,323 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Collective Impairment ($m) Individual impairment ($m) Cumulat
Slide 15: Capital Ratios Remained Strong
Capital Ratios Remained Strong Capital Adequacy Ratios (CAR) 17.2% 17.7% 17.8% Total CAR 16.3% 16.6% 3.6% 3.7% 3.9% 3.4% 3.4% Tier 2 CAR 13.6% 12.9% 13.2% 14.0% 13.9% Tier 1 / CET1 CAR Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 CET1 Capital ($b) 21 21 22 23 23 Tier 1 Capital ($b) 21 21 22 23 23 Total Capita
Slide 16: Interim Dividend Maintained
Interim Dividend Maintained 5 10 50 40 40 20 20 20 20 2011 2012 2013 1H14 Net dividend per ordinary share (¢) Interim Final Special Interim dividend Payout amount ($m) 315 315 315 320 Payout ratio (%) 25 23 21 20 16
Slide 17: Singapore – Summarised Income Statement
Singapore – Summarised Income Statement 1H14 1H13 +/(-) 2Q14 1Q14 +/(-) $m $m % $m $m % Net interest income 1,217 1,034 17.7 608 608 - Fee and commission income 490 569 (14.0) 249 241 3.1 Other non-interest income 428 254 68.7 273 155 76.7 Total income 2,134 1,856 14.9 1,130 1,004 12.6 Less: Total e
Slide 18: Singapore – Key Financial Indicators
Singapore – Key Financial Indicators 1H14 1H13 +/(-) 2Q14 1Q14 +/(-) % % % pt % % % pt Net interest margin 1.33 1.30 0.03 1.32 1.35 (0.03) Non-NII / Total income 43.0 44.3 (1.3) 46.2 39.4 6.8 Expense / Total income 38.9 41.2 (2.3) 37.1 41.0 (3.9) Customer loans (net) - $b 124.0 111.9 10.8% 124.0 120
Slide 19: Malaysia – Summarised Income Statement
Malaysia – Summarised Income Statement 1H14 1H13 +/(-) 2Q14 1Q14 +/(-) RM'm RM'm % RM'm RM'm % Net interest income 888 783 13.4 464 424 9.4 Fee and commission income 286 250 14.4 133 153 (13.1) Other non-interest income 111 134 (17.2) 58 53 9.4 Total income 1,285 1,167 10.1 655 630 4.0 Less: Total e
Slide 20: Malaysia – Key Financial Indicators
Malaysia – Key Financial Indicators 1H14 1H13 +/(-) 2Q14 1Q14 +/(-) % % % pt % % % pt Net interest margin 2.13 2.11 0.02 2.15 2.09 0.06 Non-NII / Total income 30.9 32.9 (2.0) 29.2 32.7 (3.5) Expense / Total income 38.1 34.3 3.8 40.2 35.9 4.3 Customer loans (net) - RM'b 66.9 60.2 11.2% 66.9 65.7 1.8%
Slide 21: Thailand – Summarised Income Statement
Thailand – Summarised Income Statement 1H14 1H13 +/(-) 2Q14 1Q14 +/(-) THB'm THB'm % THB'm THB'm % Net interest income 5,967 5,530 7.9 3,042 2,925 4.0 Fee and commission income 2,338 1,881 24.3 1,216 1,122 8.4 Other non-interest income (9) 72 (>100.0) (30) 21 (>100.0) Total income 8,296 7,483 10.9 4
Slide 22: Thailand – Key Financial Indicators
Thailand – Key Financial Indicators 1H14 1H13 +/(-) 2Q14 1Q14 +/(-) % % % pt % % % pt Net interest margin 3.33 3.44 (0.11) 3.30 3.37 (0.07) Non-NII / Total income 28.1 26.1 2.0 28.1 28.1 - Expense / Total income 65.3 65.2 0.1 65.5 65.1 0.4 Customer loans (net) - THB'b 252.1 218.0 15.7% 252.1 248.7 1
Slide 23: Indonesia – Summarised Income Statement
Indonesia – Summarised Income Statement 1H14 1H13 +/(-) 2Q14 1Q14 +/(-) IDR'b IDR'b % IDR'b IDR'b % Net interest income 1,380 1,232 12.0 687 693 (0.9) Fee and commission income 347 350 (0.9) 197 150 31.3 Other non-interest income 135 158 (14.6) 68 67 1.5 Total income 1,862 1,740 7.0 952 910 4.6 Less
Slide 24: Indonesia – Key Financial Indicators
Indonesia – Key Financial Indicators 1H14 1H13 +/(-) 2Q14 1Q14 +/(-) % % % pt % % % pt Net interest margin 4.52 4.68 (0.16) 4.41 4.62 (0.21) Non-NII / Total income 25.9 29.2 (3.3) 27.8 23.8 4.0 Expense / Total income 67.8 62.2 5.6 67.3 68.2 (0.9) Customer loans (net) - IDR't 53.4 46.1 15.8% 53.4 53.
Slide 25: Greater China – Summarised Income Statement
Greater China – Summarised Income Statement 1H14 1H13 +/(-) 2Q14 1Q14 +/(-) $m $m % $m $m % Net interest income 176 125 40.6 81 94 (13.7) Fee and commission income 54 48 12.6 22 32 (30.6) Other non-interest income 74 91 (18.6) 40 34 17.9 Total income 304 264 15.1 144 160 (10.4) Less: Total expenses
Slide 26: Greater China – Key Financial Indicators
Greater China – Key Financial Indicators 1H14 1H13 +/(-) 2Q14 1Q14 +/(-) % % % pt % % % pt Net interest margin 1.24 1.30 (0.06) 1.14 1.35 (0.21) Non-NII / Total income 42.3 52.8 (10.5) 43.4 41.3 2.1 Expense / Total income 39.5 37.6 1.9 42.9 36.4 6.5 Customer loans (net) - $b 14.3 9.9 44.7% 14.3 13.3