United Overseas Bank Limited · SGX:U11
United Overseas Bank — Non-Deal Roadshow (July 2007)
23 slides from United Overseas Bank's roadshow presentation, July 2007
Slide 1: United Overseas Bank Limited
United Overseas Bank Limited July 2007 This material that follows is a presentation of general background information about United Overseas Bank Limited’s (“UOB” or the “Bank”) activities current at the date of the presentation. It is information given in summary form and does not purport to be comp
Slide 2: Agenda
Agenda 1. Introduction to UOB 2. Investment Highlights 3. Conclusion 1
Slide 3: UOB Overview
UOB Overview Founding Key Statistics Founded in August 1935 by a Total Assets: S$166.7 billion group of Chinese Shareholder’s Equity: S$17.5 businessmen and Datuk Wee billion Kheng Chiang, father of the Gross Loans: S$81.6 billion present UOB Group Chairman, Mr Wee Cho Yaw Customer Deposits: S$99.7
Slide 4: Singapore: Stable Operating and Supportive Regulatory Environment
Singapore: Stable Operating and Supportive Regulatory Environment Real GDP Growth Private Consumption Unemployment Rate Growth (In %) (In %) (In %) 7.9 12.0 4.0 8.0 12.0 3.1 6.6 8.4 3.0 2.7 2.7 2.6 2.6 6.0 5.0 4.7 8.0 7.1 4.4 5.3 2.0 4.0 4.5 4.0 2.0 1.0 0.0 0.0 0.0 2005A 2006A 2007F 2008F 2009F 2005
Slide 5: Key Asian Markets: Positive Macro Indicators
Key Asian Markets: Positive Macro Indicators Real GDP Growth Private Consumption Growth (In %) (In %) 12.0 10.4 10.7 7.8 8.0 7.1 10.0 7.7 7.0 6.2 6.5 5.8 5.9 8.0 5.9 5.9 5.7 5.5 6.0 5.0 4.3 4.0 6.0 4.0 3.2 3.1 2.6 4.0 2.0 2.0 0.0 0.0 China Vietnam Malaysia Indonesia Thailand Malaysia China Vietnam I
Slide 6: Agenda
Agenda 1. Introduction to UOB 2. Investment Highlights 3. Conclusion 5
Slide 7: Investment Highlights
Investment Highlights Focused on Singapore Capital Bank with Strength and Regional Ratings Presence Stability Proven Track Robust Risk Record in Management Execution and & Asset Strong Quality Commitment to Long term Growth Increasing Revenue and Profit Diversification 6
Slide 8: Strategic Focus
Strategic Focus To be recognized as a leader in consumer and SME banking services in the region with investment banking and treasury products in support 7
Slide 9: Leading Full Service Banking Platform
Leading Full Service Banking Platform Consumer Banking SME Banking Private Banking #1 Singaporean credit SME market leader Capitalising on UOB’s cards issuer Global relationship operating network to Market leader in management capability increase cross-selling Singapore private home for customers go
Slide 10: Established Regional Banking Franchise
Established Regional Banking Franchise Total Assets Breakdown Other RoW CHINA Asia- 6.8% 11 branches / offices Other Pacific ASEAN 9.7% 2.7% Singapore Thailand 67.1% 5.1% HONG KONG & Malaysia 8.5% TAIWAN THAILAND 10 branches / offices 156 branches / offices Profit Before Tax Breakdown Rest of MALAYS
Slide 11: Proven Execution Track Record
Proven Execution Track Record Profit (S$ millions) 2,600 2006: S$2,570m 2,400 2,200 Acquired 2,000 Acquired BOA Buana in 2005 in 2004 1,800 2005: S$1,709m 1,600 Acquired OUB in 2001 2004:S$1,452m 1,400 Acquired FEB 1,200 in 1984 1,000 Acquired ICB in 1987 2000:S$913m 800 1995:S$633m Acquired 600 Acq
Slide 12: Consistently Strong Financial Performance
Consistently Strong Financial Performance Pre-Provisioning Operating Income Net Profit (In S$ million) (In S$ million) 4,000 04-06 CAGR = 23.5% 04-06 CAGR = 33.1% 2,571 3,101 2,500 689 3,000 613 2,000 1,500 2,000 1,000 1,709 1,882 2,032 2,337 2,488 1,452 1,000 500 722 518 0 0 2004 2005 2006 07Q1 200
Slide 13: Competitive Against Local and International Peers
Competitive Against Local and International Peers Top End Net Interest Margin Efficient Cost Management (In %) (In %) 2.50 61.6 2.20 2.19 2.18 60.0 39.5 42.7 2.02 2.01 2.00 40.0 31.8 26.9 20.0 1.50 0.0 CBA DBS UOB OCBC Lloyds Lloyds OCBC UOB DBS CBA Competitive ROAA Well-Maintained Liquidity (In %)
Slide 14: Well-Diversified Loan Portfolio
Well-Diversified Loan Portfolio Gross Loans Breakdown (S$ in Gross billion) Loans / Loan-Deposit (In S$ million) (In %) Other Transport / Storage 6% 90,000 81.4 80.5 78.5 79.3 / Communication Buidling and Construction 80.0 5% 10% 81,563 79,380 70.0 Manufacturing 80,000 12% Housing 60.0 Loans 69,846
Slide 15: Diversified and Growing Fee Income
Diversified and Growing Fee Income Non-Interest / Fee & Commission Income Fee & Commission Income Breakdown (In S$ million) 2,500 Fee & Commission Income 04-06 CAGR = 19.2% 2006 Total = S$1,003 million 2,000 1,514 2007 1Q Total = S$259 million 1,414 1,500 1,104 514 511 1,000 398 Futures 432 Other 50
Slide 16: Risk & Capital Management Framework
Risk & Capital Management Framework Risk Management Credit and Country Market Operational Risk Management Risk Management Risk Management Credit Committee Asset Liability Management (weekly) Committee (bi-weekly) Committee (monthly) Executive Committee Executive Committee Executive Committee (monthl
Slide 17: Improving Asset Quality and Adequate Provisioning
Improving Asset Quality and Adequate Provisioning Decreasing Non-Performing Loans Maintaining Adequate Coverage (In S$ million) (In %) (In %) 8,000 8.00 8.00 200 188.6 7,000 172.6 159.4 6,000 6.00 150 5.60 138.6 5,000 1,787 4,000 4.00 4.00 100 3.70 84.5 350 938 79.2 3,000 67.9 69.0 464 886 880 160 5
Slide 18: Robust Capitalization Levels
Robust Capitalization Levels Capital Adequacy Ratio (CAR) Stronger Capitalization than Peers (In %) (In %) 20.00 20.00 16.10 16.30 16.20 15.60 16.20 15.40 15.00 15.00 13.60 13.10 11.00 11.00 11.00 11.10 11.10 10.70 10.00 9.60 9.78 10.00 8.20 7.06 5.00 5.00 0.00 0.00 Dec-04 Dec-05 Dec-06 Mar-07 UOB O
Slide 19: One of the World's Leading Credits
One of the World's Leading Credits Bank Financial Strength Credit Ratings Rating Moody's S&P Fitch B+ Individual Rating / B+ B B B B LT Deposit Issuer Rating LT Rating Support B UOB Aa1 A+ AA- B/ 2 OCBC Aa1 A+ AA- B/ 2 B- DBS Aa1 AA- AA- B/ 2 C+ Lloyds Aaa AA AA+ A/1 CBA Aa1 AA AA A / B/ 2 C C- Mood
Slide 20: Stable Funding and Proactive Debt Management
Stable Funding and Proactive Debt Management Core Deposits Mix Changes to MAS Guidelines Current/ Banker Effective March 2007, Singapore authorities Saving / deposits lowered the Tier 1 CAR requirement from 7% to Other 25.3% 6%. The total CAR requirement remains deposits unchanged at 10% 24.5% MAS a
Slide 21: Agenda
Agenda 1. Introduction to UOB 2. Investment Highlights 3. Conclusion 20
Slide 22: Conclusion
Conclusion 1 Large Presence Across the Region 5 2 Proven Execution One of the Best Track Record and Capitalized and Strong Highest Rated Commitment to Long term Growth 4 3 Strong Operating Robust Risk Platform and Management and Diversification Improving Asset Targeted for Quality Growth UOB’s missi
Slide 23: Awards and Accolades
Awards and Accolades “Best Local Private Bank – “Best Corporate “Best Domestic Bank – Singapore (2nd position)” Governance – Singapore” Singapore” “Best FIG Borrower – Asia” 2007 2006 2006 “Best Bank - Singapore” “Top 10 Best Managed “Most Valuable Singapore “Best Sub-Custodian Bank Companies – Sing