United Overseas Bank Limited · SGX:U11
United Overseas Bank — Debt Investor Presentation (September 2018)
69 slides from United Overseas Bank's debt investor presentation, September 2018
Slide 1: UOB Group Fixed Income Investor Presentation
UOB Group Fixed Income Investor Presentation Strong Business Performance and Balance Sheet Position September 2018 Discla imer : Th is mater ial that follo ws is a prese ntat io n of genera l ba ckgrou nd informat ion ab out the Ba nk’s act ivities current at the date of the present at ion. It is in
Slide 2: Agenda
Agenda 1. Overview of UOB Group 2. Strong UOB Fundamentals 3. Our Growth Drivers 4. Resilience of the Singapore Housing Market & UOB’s Cover Pool Appendix: A. Latest Financials B. Additional Information on UOB’s Covered Bond Program C. Macroeconomic Outlook and Banking Regulations 2
Slide 3: Overview of UOB Group
Overview of UOB Group HtUOB
Slide 4: UOB Overview
UOB Overview Founding Key Statistics for 1H18 Founded in August 1935 by a group of Chinese ■ Total assets : SGD384b (USD282b1) businessmen and Datuk Wee Kheng Chiang, ■ Shareholder’s equity : SGD38b (USD28b1) grandfather of the present UOB Group CEO, Mr. Wee Ee Cheong ■ Gross loans : SGD250b (USD183
Slide 5: A Leading Singapore Bank; Established Franchise in Core Market Segments
A Leading Singapore Bank; Established Franchise in Core Market Segments Group Retail Group Wholesale Banking Global Markets Best Retail Bank in Singapore1 Best SME Banking1 Strong player in Singapore dollar treasury instruments Strong player in credit cards and Seamless access to regional
Slide 6: Proven Track Record of Execution
Proven Track Record of Execution UOB Group’s management has a proven track record in steering the Group through various global events and crises. Stability of management team ensures consistent execution of strategies Disciplined management style which underpins the Group’s overall resilience
Slide 7: Expanding Regional Banking Franchise
Expanding Regional Banking Franchise Extensive Regional Footprint with c.500 Offices Profit Before Tax by Region (SGD m) MYANMAR GREATER CHINA 2 offices 28 offices1 39% of VIETNAM Group PBT 469 THAILAND 1 office 154 offices 324 367 301 419 PHILIPPINES 305 366 300 29 1 office 99 61 71 218 MALAYSIA 15
Slide 8: Why UOB?
Why UOB? Proven track record in steering the bank through various global events and Stable crises Management Stability of management team ensures consistent execution of strategies Entrenched local presence. Ground resources and integrated regional Integrated Regional network allow us to bette
Slide 9: Strong UOB Fundamentals
Strong UOB Fundamentals ttt UOB
Slide 10: Strong UOB Fundamentals
Strong UOB Fundamentals Strong Proven track record in steering the bank through various global events and Management with crises Proven Track Record Stability of management team ensures consistent execution of strategies Consistent and Healthy revenue growth, with new highs in both net interes
Slide 11: Managing Risks for Stable Growth
Managing Risks for Stable Growth Prudent approach has been key to delivering sustainable returns over the years Manage concentration risk Institutionalised framework through Group Risk Appetite Maintain Statement (GRAS): Nurture core balance talent sheet – Outlines risk and return strength objec
Slide 12: Competitive Against Peers
Competitive Against Peers Standalone Efficient Cost Competitive Well-Maintained Strength Management ROAA1 Liquidity Moody’s S&P Fitch Moody’s baseline Costs/income Return on average Loan/deposit credit assessment ratio assets1 ratio Aa1 AA– AA– UOB a1 43.9% 1.12% 85.7% Aa1 AA– AA– OCBC a1 43.0% 1.22
Slide 13: Strong Capital and Leverage Ratios
Strong Capital and Leverage Ratios Reported Common Equity Tier 1 CAR, Tier 1 CAR and Total CAR 23.4 22.4 22.4 21.3 20.4 19.1 (Common Equity 18.4 17.2 17.0 16.6 16.4 16.3 16.2 16.0 15.9 15.9 15.7 15.7 14.8 14.7 14.5 14.4 14.4 14.3 14.3 14.2 14.2 Tier 1 CAR; 13.8 13.6 13.2 13.0 13.0 12.4 12.4 12.1 11.
Slide 14: Disciplined Balance Sheet Management
Disciplined Balance Sheet Management Improved balance sheet efficiency Balance Sheet Efficiency a Key Priority – Stronger RoRWA1 driven mainly by higher profit RoRWA1 1.51% 1.63% 2.04% Healthy portfolio quality – 11bps credit cost on NPL lower YoY FY16 FY17 1H18 – NPL ratio stable at 1.7% RWA SG
Slide 15: Diversified Loan Portfolio
Diversified Loan Portfolio Gross Customer Loans by Geography 1 Gross Customer Loans by Currency Others Others Singapore SGD IDR 15% Greater 11% 52% 47% China 2% 15% THB 6% Indonesia MYR 4% 10% Thailand 6% Malaysia USD 12% 20% Gross Customer Loans by Maturity Gross Customer Loans by Industry <1 year
Slide 16: Strong Investment Grade Credit Ratings
Strong Investment Grade Credit Ratings Aa1 / Stable / P-1 AA– / Stable / A-1+ AA– / Stable / F1+ Capital good by global standards Well-established market position, strong Sound capital and high loan-loss buffers Deposit-funded and liquid balance sheet funding and prudent management record
Slide 17: Sustainability Reporting a Multi-Year Journey, with Progress Recognised
Sustainability Reporting a Multi-Year Journey, with Progress Recognised Created by the global index provider FTSE Russell, the FTSE4Good Index Series is Sustainalytics is the designed to measure the leading independent global performance of companies 2017: 49 provider of ESG1 and demonstrating stron
Slide 18: Our Growth Drivers
itt UOB Our Growth Drivers 18
Slide 19: Our Growth Drivers
Our Growth Drivers Provides us with ability to serve expanding regional needs of our Realise Full customers Potential of our Integrated Platform Improves operational efficiency, enhances risk management, seamless customer experience and faster time to market Global macro environment remains un
Slide 20: Wholesale Banking: Income Diversification Remains Key
Wholesale Banking: Income Diversification Remains Key Non-loan income: +15% YoY in 1H18 Segment RoRWA1: +0.16% pt YoY in 1H18 Non-loan income % 52% 51% 52% 1,707 SGD m 918 850 2.04% 2.02% 2.18% 1,855 881 1,009 FY17 1H17 1H18 FY17 1H17 1H18 Non-loan income Loan income Transaction banking income: +17%
Slide 21: Retail Banking: Steady Improvement in Performance
Retail Banking: Steady Improvement in Performance Gross Loans (Group Retail1): +6% YoY in 1H18 Income3 (Group Retail1) +5% YoY in 1H18 SGD b SGD m 106 3,781 104 100 1,851 1,943 FY17 1H17 1H18 FY17 1H17 1H18 High Affluent2 income: +12% YoY in 1H18 Segment RoRWA4 +0.42% pt YoY in 1H18 SGD m 1,330 6.60
Slide 22: Focusing on the Future
Focusing on the Future The retail The new The new banking future business model Digital Bank Digital Banking or From “Cross-selling Making it Simple, Engaging and Digital Bank to Engaging" and Transparent Digital banking (omni-channel) The data-centric Digital Bank’s Simple and the digital ban
Slide 23: Achieving our Goals for Digital Bank
Achieving our Goals for Digital Bank Powering the Digital Bank for Engagement Scaling our • Fast and modular 5 regional franchise • Next-gen credit assessment with • Next-gen UI capabilities Countries Avatec.ai (JV; April 2018) • 24/7 fast digital service Acquire Transact Target customers 3–5m Mobil
Slide 24: Resilience of the Singapore Housing Market & UOB's Cover Pool
Resilience of the Singapore Housing Market & UOB’s Cover Pool 24
Slide 25: Conducive Macro Conditions Underpin Singapore Property Market
Conducive Macro Conditions Underpin Singapore Property Market Regional House Price Indices over Last 10 Years Low Unemployment vs Global Peers (2Q08 = 100) (%) HK, 292 7.7 MY, 214 EU, 6.9 7.3 US, 4.0 AU, 163 CH, 3.8 TH, 136 HK, 2.8 100 SG, 2.1 2.4 SG, 117 2Q08 2Q10 2Q12 2Q14 2Q16 2Q18 2008 2010 2012
Slide 26: Prudent Policies for Sustainable Prices
Prudent Policies for Sustainable Prices 160 Residential Property Price Indices in Singapore (1Q09 = 100) HDB Resale Price Index 140 Private Residential Price Index 120 100 2013: Introduction of TDSR 80 60 1997: Asian 2011: Introduction of Crisis 2008: Onset ABSD of Credit 40 Crisis 2001: Dot Com 200
Slide 27: Covered Bond Program Summary
Covered Bond Program Summary USD8,000,000,000 Global Covered Bond Programme Issuer United Overseas Bank Limited Issuer Long Term Rating Aa1 (stable) / AA- (stable) / AA- (stable) (Moody’s / S&P / Fitch) Issuer Short Term Rating P-1 (stable) / A-1+ (stable) / F1+ (stable) (Moody’s / S&P / Fitch) Prog
Slide 28: Covered Bond Structure
Covered Bond Structure Notwithstanding that CPF’s consent is required for the transfer or assignment of mortgages relating to CPF Loans, no such consent is required for a declaration of trust over mortgages relating to CPF Loans. The Seller is acting as the Assets Trustee and the CPF Loans are held
Slide 29: UOB's Cover Pool Profile
UOB’s Cover Pool Profile Overview of Cover Pool (as of Jul’18) Current Loan Balances Mainly <S$1m Number of Mortgage Loans 11,121 3% 3% 3% 3% 3% 3% 4% 4% 4% Total Current Balance (SGD) 7.2 billion 6% 6% 5% 7% 6% 6% 7% 7% (SGD ‘000) 7% Average Current Loan Balance (SGD) 645,862 16% 16% 17% >4,000 17%
Slide 30: Cover Pool has Been Stable
Cover Pool has Been Stable Primarily Apartments / Condominums Diversified Geographical Distribution 4% 4% 5% 5% 5% 5% 5% 4% 5% 5% 5% 5% 5% 5% 5% 6% 5% 5% 11% 11% 11% 11% 11% 11% 11% 11% 11% 4% 4% 4% 5% 4% 4% 4% 4% 4% Others 9% 9% 9% 9% 9% 10% 11% 11% 11% 19% 19% 19% 19% 19% 19% 18% 18% 18% Rest of I
Slide 31: Cover Pool has Been Stable
Cover Pool has Been Stable Majority Owner Occupied Loans Mainly for Purchases 24% 25% 26% 26% 27% 27% 26% 27% 27% Refinance, Investment 18% 76% 75% 74% Owner 74% 73% 73% 74% 73% 73% occupied Purchase, 82% Sep '16 Dec '16 Mar '17 Jun '17 Sep '17 Dec '17 Mar '18 Jun '18 Jul '18 Well Seasoned Portfolio
Slide 32: Appendix A: Latest Financials
Appendix A: Latest Financials 32
Slide 33: 1H18 Financial Overview
1H18 Financial Overview Net Profit After Tax1 (NPAT) Movement, 1H18 vs 1H17 (SGD m) 129 76 196 196 22 26 353 +24% 2,055 1,652 +13% +15% –12% +11% –54% +38% +7% 1H17 net Net interest Net fee1 Other non- Expenses1 Total Share of Tax and 1H18 net profit after income income interest allowances profit of
Slide 34: 2Q18 Financial Overview
2Q18 Financial Overview Net Profit After Tax1 (NPAT) Movement, 2Q18 vs 1Q18 (SGD m) 72 19 58 35 11 23 10 978 +10% 1,077 +5% –4% +24% +4% +14% +81% –5% 1Q18 net Net interest Net fee Other non- Expenses Total Share of Tax and 2Q18 net profit after income income interest allowances profit of non- profi
Slide 35: Net Interest Income Rose on Loan Growth and Margin
Net Interest Income Rose on Loan Growth and Margin Net Interest Income (NII) and Net Interest Margin (NIM) 2,400 3.00% 3.00% 2.26% 2.20% 2.14% 2.14% 2.15% 2.14% 2.18% 2.22% 8,500 2.06% 2,200 2.00% 2.00% 7,500 1.71% 1.77% 1.71% 1.77% 2,000 1.75% 1.79% 1.81% 1.84% 1.83% 1.00% 1.00% 0.82% 1,800 0.82% 0
Slide 36: Broad-based Increase in Loan Portfolio
Broad-based Increase in Loan Portfolio QoQ YoY Jun-18 Mar-18 +/(–) Jun-17 +/(–) Gross Loans SGD b SGD b % SGD b % By Geography Singapore 131 129 +2 125 +4 Regional: 94 89 +6 79 +18 Malaysia 29 29 +1 26 +11 Thailand 16 16 +0 14 +13 Indonesia 11 10 +4 12 –6 Greater China 38 34 +13 28 +37 Others 25 24
Slide 37: Steady Non-Interest Income Mix Underpins Diversity
Steady Non-Interest Income Mix Underpins Diversity Non-Interest Income and as a % of Total Income 50.0% 50.0% 5,300 37.2% 36.9% 35.9% 35.4% 1400 35.9% 40.0% 34.9% 34.5% 34.1% 34.2% 40.0% 4,800 30.0% 30.0% 4,300 1200 20.0% 20.0% 3,800 21.4% 21.0% 21.3% 21.9% 21.2% 22.0% 22.8% 23.2% 21.3% 1000 10.0% 1
Slide 38: Broad-based Focus in Fee Income
Broad-based Focus in Fee Income Breakdown of Fee Income (SGD m) (SGD m) 2,161 602 585 581 80 600 20 1,931 551 18 15 2,000 1,883 517 272 18 72 1,749 74 93 72 74 500 21 68 59 263 148 36 258 66 41 37 273 35 1,500 121 134 36 471 400 141 113 133 148 122 498 482 102 490 300 1,000 547 142 165 143 132 403 1
Slide 39: Pacing Growth in Operating Expenses, with Maintaining a Stable CIR
Pacing Growth in Operating Expenses, with Maintaining a Stable CIR Operating Expenses and Expense / Income Ratio 6,500 50.0% 1,800 50.0% 46.0% 44.0% 43.7% 43.8% 44.2% 43.6% 43.0% 45.0% 1,600 45.0% 5,500 40.6% 41.6% 40.0% 1,400 40.0% 4,500 35.0% 1,200 35.0% 3,739 3,425 1,027 1,022 3,356 987 3,500 30.
Slide 40: IT Investments Shifting Towards "Changing the Bank"
IT Investments Shifting Towards “Changing the Bank” Connectivity and Digital for Focus Centralisation and Standardisation Growth Cumulative 2009 to 2013 2014 to 2017 IT investments (cSGD0.6 b) (cSGD1.2 b) Total IT investments Global Market Platform: Customer flow income +12%1 28% Cash Management Pla
Slide 41: Exposure to China
Exposure to China Bank exposure as of 30 June 2018 Non-bank exposure as of 30 June 2018 • Bank exposure accounted for 65% of total • Target customers include top-tier state- exposure to China owned enterprises, large local corporates • Top 5 domestic banks and 3 policy banks and foreign investment e
Slide 42: New NPA Formation Remained at Normalised Levels
New NPA Formation Remained at Normalised Levels (SGD m) 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 NPA at start of 3,106 3,164 3,632 3,480 3,543 3,587 3,919 4,389 4,323 period New NPA 802 780 387 424 537 799 1,167 416 436 Upgrades, recoveries and (548) (201) (320) (293) (255) (369) (354) (310) (21
Slide 43: NPL Ratio Stable at 1.7%
NPL Ratio Stable at 1.7% NPL ratio 1.5% 1.6% 1.8% 1.7% 1.7% NPLs (SGD m) 3,466 3,748 4,211 4,138 4,208 4,500 Others 4,000 303 290 300 132 150 139 272 3,500 694 Greater China 244 692 721 285 3,000 261 608 439 Indonesia 485 482 641 2,500 386 585 603 623 Thailand 392 2,000 563 518 Malaysia 1,500 2,058
Slide 44: Low Credit Costs amid Benign Credit Conditions
Low Credit Costs amid Benign Credit Conditions Allowances for Loans 2,000 600 150bp 125bp 150bp 1,800 500 100bp 100bp 1,600 61bp 1,400 45bp 37bp 32bp 32bp 50bp 400 32bp 50bp 1,200 12bp 13bp 32bp 28bp 30bp 32bp 1,000 19bp 0bp 300 17bp 11bp 0bp 12bp 11bp 800 200 (50)bp (50)bp 600 400 626 655 693 660 1
Slide 45: Adequate NPL Reserve Coverage Ratios
Adequate NPL Reserve Coverage Ratios 300% Total Allowances / 241% 236% Unsecured NPLs250% (%) 195% 200% 178% 178% Total Allowances / NPLs 150% 114% 108% (%) 91% 81% 80% 100% Allowances for NPLs 50%/ NPLs (%) 0% 38% 39% 44% 43% 42% 4,500 4,000 3,500 Allowances for performing loans 3,000 2,595 1,961 (
Slide 46: Strong Capital and Leverage Ratios
Strong Capital and Leverage Ratios 7.8% 7.7% 8.0% 8.2% 7.7% Leverage ratio 1 5.0% Total CAR 2 17.8% 17.8% 18.7% 18.8% 18.4% 0% 19.0% 17.0% 2.5% 2.4% 2.4% -20000% 3.5% 3.0% 1.1% 1.5% Tier 2 CAR 2 15.0% 1.5% 0.5% 0.5% -40000% 13.0% Tier 1 CAR 2 11.0% -60000% CET1 CAR 2 13.8% 14.3% 15.1% 14.9% 14.5% 9.
Slide 47: Stable Liquidity and Funding Position
Stable Liquidity and Funding Position 111% 110% Net stable funding 1.15 ratio (%) 1.05 94.2% 94.8% SGD loan-deposit ratio 91.9% 92.3% 0.95 89.9% (LDR) (%) 0.85 Group LDR (%) 86.1% 85.8% 85.1% 86.7% 85.7% 0.75 USD LDR (%) 0.65 66.5% 65.3% 66.2% 63.9% 63.5% 0.55 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 250%
Slide 48: Higher Interim Dividend for 1H18
Higher Interim Dividend for 1H18 20 20 45 35 35 50 35 35 35 2015 2016 2017 2018 Net dividend per ordinary share (¢) Interim Final Special UOB 80th Anniversary Payout amount (SGD m) 1,444 1,135 1,661 835 Payout ratio (%) 45 37 49 41 Payout ratio (excluding 35 37 39 41 special/one-off dividends) (%) N
Slide 49: Appendix B: Additional Information on UOB's Covered Bond Program
Appendix B: Additional Information on UOB’s Covered Bond Program 49
Slide 50: Key Features – Use of CPF funds in Residential Property Financing
Key Features – Use of CPF funds in Residential Property Financing What is CPF CPF Board and Priority of Use of CPF for housing loan (Central Provident Fund)? Payments CPF, established in 1955, is a CPF Members can use their savings (and Under the present regime, if the property is comprehensiv
Slide 51: Structural Features/Enhancements
Structural Features/Enhancements ► The Covered Bonds will be direct, unsecured and unsubordinated obligations of the Issuer Credit Structure (Dual Recourse) ► The CBG guarantees the payment of principal and interest under the Covered Bonds pursuant to the Covered Bond Guarantee and secured by the Co
Slide 52: Key Programme Rating Triggers
Key Programme Rating Triggers Moody’s Trigger S&P Trigger Trigger Event Descriptions Long- Short- Events Long- Short- Events ► The Pre-Maturity Test is performed daily for 12 months prior to term term term term the Maturity Date in relation to a hard bullet Covered Bond ► If UOB’s unsecured and unsu
Slide 53: Asset Coverage Test (ACT)
Asset Coverage Test (ACT) SGD Equivalent of the Aggregate Outstanding Adjusted Aggregate Loan Amount Nominal Amount of all Covered Bonds Tested monthly on every Test Date prior to the service of a Notice to Pay and for so long as any Covered Bonds remain outstanding Failure of meeting the ACT on
Slide 54: Amortisation Test
Amortisation Test SGD Equivalent of the Aggregated Outstanding Amortisation Test Aggregate Loan Amount Nominal Amount of the Covered Bonds Tested monthly on every Test Date following the service of a Notice to Pay but prior to the service of a CBG Acceleration Notice and for so long as Covered Bon
Slide 55: Equitable Assignment versus Declaration of Assets Trust Structure
Equitable Assignment versus Declaration of Assets Trust Structure Equitable Assignment (EA) Declaration of Assets Trust (DOT) • Method of Sale - By way of equitably assigning its rights • Method of Sale – the Seller will declare an asset trust over in the mortgage loans to CBG the mortgage loans in
Slide 56: Covered Bond Legal Frameworks
Covered Bond Legal Frameworks Singapore Australia Canada Germany United Kingdom Korea Legal Notice 648 under the Banking Amendment Canadian Covered Bond German Pfandbrief Act UK Regulated Covered Covered Bonds Act Framework / Banking Act (Covered Bonds) Act 2011 Law (June 2012) Bond Regulations of K
Slide 57: Covered Bond Legal Frameworks (Continued)
Covered Bond Legal Frameworks (Continued) Singapore Australia Canada Germany United Kingdom Korea Residential Residential mortgages Residential mortgages 60% LTV for both 80% LTV for residential 70% LTV for residential mortgages ≤80% LTV ≤80% LTV ≤80% LTV residential and mortgage loans m
Slide 58: Appendix C: Macroeconomic Outlook and Banking Regulations
Appendix C: Macroeconomic Outlook and Banking Regulations 58
Slide 59: Trade Tensions Cloud China's Outlook but Low Risk of Hard Landing
Trade Tensions Cloud China’s Outlook but Low Risk of Hard Landing The Chinese economy has its underlying momentum, supported by rebalancing reforms and steady jobs market. Low central government debt underpins China’s fiscal capacity, which could help mitigate “black swan” events. Base case sc
Slide 60: Global Trade Tension Negative for Small Open Economies in Asia
Global Trade Tension Negative for Small Open Economies in Asia Direct Vulnerability to US Exports: Indirect Vulnerability to US Exports via China: China, Japan, Vietnam and India Stand Out Taiwan, followed by Korea, Singapore & Malaysia 200 200 Hong Kong Hong Kong Singapore Singapore 160 160 Total e
Slide 61: Implication on Regional Policy Rates
Implication on Regional Policy Rates 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18f 4Q18f US 10-Year Treasury 1.59 2.44 2.39 2.30 2.33 2.40 2.74 2.86 3.00 3.20 US Fed Funds 0.50 0.75 1.00 1.25 1.25 1.50 1.75 2.00 2.25 2.50 SG 3M SIBOR 0.87 0.97 0.95 1.00 1.12 1.50 1.45 1.52 1.75 1.95 SG 3M SOR 0.67 1
Slide 62: Southeast Asia: Resilient Key Markets
Southeast Asia: Resilient Key Markets Significantly Higher Foreign Reserves Healthy Current Account Balances (USD billion) (% of GDP) 288 18.9 213 15.3 75 123 109 9.3 30 24 26 2.4 Singapore Thailand Indonesia Malaysia –2.0 –1.5 –1.9 –5.5 1998 2018 (latest available) Singapore Malaysia Thailand Indon
Slide 63: Singapore GDP Growth to Moderate in 2H18
Singapore GDP Growth to Moderate in 2H18 2Q18 GDP grew at a slower pace of 3.8% yoy (1Q18: MAS Normalised SGD NEER in Apr’18 +4.3%), due to a slower expansion in the services and 133 Easing #1 Easing #2 Easing #3 MAS kept neutral stance unchanged manufacturing sectors. But these sectors are still
Slide 64: Southeast Asia Banking Sectors: Strong Fundamentals Remain Intact
Southeast Asia Banking Sectors: Strong Fundamentals Remain Intact Robust Capital Positions Adequate Loan/Deposit Ratio Healthy Reserves (Common equity Tier 1 capital adequacy (Loan/deposit ratio, in %) (NPL reserve cover, in %) ratio, in %) 21.8 Thailand Singapore 94.7 Indonesia Indonesia Thailand 8
Slide 65: Revenue Potential from 'Connecting the Dots' in the Region
Revenue Potential from ‘Connecting the Dots’ in the Region Industry’s Potential Connectivity Revenue Industry’s Potential Connectivity Revenue (2020) (SGD b) (SGD b) CAGR c$53b Markets where UOB has a presence c$11b +6% Total Singapore Thailand c$2b c$2b c$37b c$7b +6% Hong Wealth Kong c$8b c$3b c$5
Slide 66: Basel III across the Region
Basel III across the Region BCBS Singapore Malaysia Thailand Indonesia Hong Kong China Minimum CET1 CAR 4.5% 6.5%1 4.5% 4.5% 4.5% 4.5% 5.0% Minimum Tier 1 CAR 6.0% 8.0%1 6.0% 6.0% 6.0% 6.0% 6.0% Minimum Total CAR 8.0% 10.0%1 8.0% 8.5% 8.0% 8.0% 8.0% Full Compliance Jan-15 Jan-15 Jan-15 Jan-13 Jan-14
Slide 67: Banking Regulations Still Evolving
Banking Regulations Still Evolving Year ’13 ’14 ’15 ’16 ’17 ’18 ’19 ’20 ’21 ’22 ’23 ’24 ’25 ’26 ’27 Basel III Phased-in Full capital ratios Leverage ratio Disclosure phase Start LCR1 Phased-in Full NSFR2 Start SACCR3 Start FRTB4 Start TLAC5 Phased-in Full Basel IV6 Phased-in Full IFRS 9 Start Banks
Slide 68: Impact of Basel IV Likely to be Manageable
Impact of Basel IV1 Likely to be Manageable Retail credit Wholesale credit Others LGD2 floor of Retail Mortgage cut LGD2 and PD3 floors introduced for to 5% from 10% QRRE4 and Other Retail Unsecured corporate FIRB5 LGD2 cut CCF6 for unconditional cancellable to 40% from 45% commitments raised to 10%
Slide 69: Thank You
Thank You tt UOB RIGHT BY YOU
United Overseas Bank — Debt Investor Presentation (September 2018) on 6ix