United Overseas Bank Limited · SGX:U11
United Overseas Bank — Macquarie Capital Securities Financials Conference 2008
20 slides from United Overseas Bank's conference presentation, Jun 26, 2008
Slide 1: Macquarie Capital Securities Financials Conference
Macquarie Capital Securities Financials Conference 26 June 2008 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 form and does not purport to be complete
Slide 2: Agenda
Agenda 11 Business Business Overview Overview 22 Financial Financial Overview Overview 2
Slide 3: UOB Overview
UOB Overview Founding Key Statistics* Founded in August 1935 by a Total Assets: S$185.8 billion group of Chinese businessmen Shareholder’s Equity: S$17.0 billion and Datuk Wee Kheng Chiang, Net Customer Loans: S$94.4 billion grandfather of the present UOB Customer Deposits: S$109.6 billion G
Slide 4: Execution Track Record
Execution Track Record Profit (S$ million) 2,200 1Q08: S$529m 2007: S$2,109m 2,000 Acquired Buana in 2005 2006*: S$1,882m 1,800 Acquired BOA 2005: S$1,709m 1,600 in 2004 1,400 Acquired OUB 2004:S$1,452m in 2001 1,200 1,000 Acquired ICB 2000:S$913m 800 Acquired FEB in 1987 in 1984 1995:S$633m Acquire
Slide 5: Established Global Presence
Established Global Presence Total Assets Breakdown More than 500 offices in 18 countries Singapore : 65% USA - 3 Singapore - 72 Canada - 1 Rest of the world : 14% China - 11 Indonesia - 218 Greater China : 4% France - 1 Indonesia : 2% Hong Kong - 7 Thailand - 154 UK - 1 Thailand : 5% Malaysia : 10%
Slide 6: The UOB Difference
The UOB Difference Well-Established Regional Network Strong Management Well-Diversified Team Portfolio Focus on Proven Long-Term Execution Track Returns Record Keen Understanding of Markets & Customers 6
Slide 7: Strategic Focus
Strategic Focus Information Technology Treasury Risk Consumers SMEs Management & Compliance Investment Operational Banking Excellence Human Resources To To be be recognized recognized as as aa leader leader in in consumer consumer and and SME SME banking banking services services in in the the regio
Slide 8: Expand Southeast Asia Franchise
Expand Southeast Asia Franchise Malaysia Thailand • Good growth despite competition • Good loan growth momentum • Strong governance and risk management • Infrastructure scaled up - ready to grow structure in place but maintain discipline Thailand • Leverage on strengths to enhance market • Tap o
Slide 9: Next Growth Phase – Beyond the Four Pillars
Next Growth Phase – Beyond the Four Pillars China • Newly locally incorporated China subsidiary. Operates 8 branches (including Puxi sub-branch). Intends to expedite branch network expansion • Focus on organic growth targeting affluent consumer & institutional segments • Seek strategic partnership
Slide 10: Agenda
Agenda 11 Business Business Overview Overview 22 Financial Financial Overview Overview 10
Slide 11: A Good First Quarter 2008
A Good First Quarter 2008 QoQ Key Indicators 1Q08 4Q07 Change Higher NII & disciplined Operating Profit ^ ($m) 770 719 7.0% cost management Core business remains Net Profit After Tax ($m) 529 506 4.6% strong ROE * (% ) Steady upward trend 12.7 12.0 0.7%pt Reflecting weaker market Non-NII / Total Inc
Slide 12: Best Quarter Performance in NII and NIM
Best Quarter Performance in NII and NIM Net Interest Income and Margin 3.18% 3.25% 3.21% 3.22% 3.28% 3.01% 3.12% 3.05% 3.15% 2.10% 1.99% 1.99% 2.04% 2.10% 2.20% 2.04% 1.93% 1.94% 2,710 2,980 2,155 2,348 852 762 761 714 743 2004 2005 2006 2007 1Q07 2Q07 3Q07 4Q07 1Q08 Net NetInterest InterestIncome I
Slide 13: Stable Fee and Commission Income
Stable Fee and Commission Income Non-Interest Income (Non-NII) and Non-NII Ratio 33.9% 37.6% 35.8% 38.8% 41.3% 41.7% 36.2% 35.5% 32.7% 21.7% 23.9% 23.7% 26.2% 25.4% 28.8% 29.0% 24.0% 21.7% 1,892 536 532 1,514 614 1,414 432 206 162 414 393 1,104 74 111 514 511 173 398 1,278 1,003 330 370 900 319 303
Slide 14: Continued Infrastructure Investments
Continued Infrastructure Investments Operating Expenses and Expense / Income Ratio 41.1% 41.4% 37.9% 44.0% 43.6% 37.6% 2,018 39.5% 38.9% 39.2% 1,736 272 1,424 256 1,227 222 188 504 487 556 496 472 71 67 70 64 67 2004 2005 2006 2007 1Q07 2Q07 3Q07 4Q07 1Q08 Operating OperatingExpenses Expenses($m) ($
Slide 15: Well-Diversified and Liquid Balance Sheet
Well-Diversified and Liquid Balance Sheet Total Assets ($m) 166,728 170,063 172,192 174,950 185,784 Cash, bal & placements with central banks 11.3% 12.0% 12.0% 10.1% 11.4% Placements & bal with 8.7% 10.2% 14.4% 11.5% 9.5% banks & agents 9.7% 9.1% 9.5% 10.1% Others 9.4% 11.3% 11.3% 11.6% 10.3% Other
Slide 16: Strong Growth in Loans and Deposits
Strong Growth in Loans and Deposits Customer Loans, Deposits and L/D Ratio 86.6% 86.1% 81.3% 79.3% 78.9% 109.6 107.0 104.5 104.8 99.7 92.7 94.3 85.2 82.5 79.0 Mar'07 Jun'07 Sep'07 Dec'07 Mar'08 Net NetCustomer CustomerLoans Loans($b) ($b) Customer CustomerDeposits Deposits($b) ($b) Loans Loans//Depo
Slide 17: NPL Ratios Continue to Improve
NPL Ratios Continue to Improve NPL^ ($m) 2,983 2,380 2,030 1,713 1,602 NPL Ratio^ 3.7% 2.8% 2.3% 1.8% 1.6% 287 115 293 841 94 247 403 77 81 82 418 73 577 436 68 585 393 527 495 504 1,163 1,005 761 628 555 Mar'07 Jun'07 Sep'07 Dec'07 Mar'08 Singapore Malaysia Thailand Indonesia Other ^ Excluding debt
Slide 18: Capital Position Remains Strong
Capital Position Remains Strong Capital Adequacy Ratio (CAR) 16.2% 15.7% Total CAR 14.8% 14.5% 14.3% ` Tier 1 CAR 11.1% 10.8% 10.2% 10.0% 9.9% Mar'07 Jun'07 Sep'07 Dec'07 Mar'08 Tier 1 Capital ($m) 12,451 12,382 12,210 12,461 12,011 Risk-Weighted Assets ($m) 111,781 114,842 120,181 124,772 121,304 1
Slide 19: Maintain High Net Dividend Rate
Maintain High Net Dividend Rate Special Dividend in Specie Final 24.2 cts 12.3 cts 22.8 cts Interim 41.0 cts 45.0 cts 32.0 cts 32.0 cts 16.0 cts 16.0 cts 16.0 cts 16.4 cts 2004 2005 2006 2007 Special Dividend - $351m * $369m $187m Cash Dividend $744m $737m $868m $929m Dividend Payout $744m $1,088m $
Slide 20: In Summary
In Summary UOB will benefit from strong domestic structural growth to drive its businesses and cushion impact from global or regional slowdown Region will provide the growth catalyst and upside potential in long-term Established a prized Southeast Asia distribution network. Ongoing investments
United Overseas Bank — Macquarie Capital Securities Financials Conference 2008 on 6ix