United Overseas Bank Limited · SGX:U11

United Overseas Bank — Debt Investor Presentation (September 2017)

75 slides from United Overseas Bank's debt investor presentation, September 2017

1. Slide 1: UOB Group Fixed Income Investor Presentation

   UOB Group Fixed Income Investor Presentation Sound Operating Performance, supported by Healthy Balance Sheet September 2017 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.

2. Slide 2: Agenda

   Agenda 1. Overview of UOB Group 2. Strong UOB Fundamentals 3. Regulatory Developments 4. Macroeconomic Outlook Appendix: a. Latest Financials b. Our Growth Drivers c. Resilience of the Singapore Housing Market d. Overview of our Covered Bond Programme

3. Slide 3: Overview of UOB Group

   Overview of UOB Group HtUOB

4. Slide 4: UOB Overview

   UOB Overview Founding Key Statistics for 1H17 Founded in August 1935 by a group of Chinese ■ Total assets : SGD344b (USD250.1b1) businessmen and Datuk Wee Kheng Chiang, ■ Shareholder’s equity : SGD35b (USD25.2b1) grandfather of the present UOB Group CEO, Mr. ■ Gross loans : SGD228b (USD165.4b1) Wee

5. 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

6. 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

7. 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 27 offices1 VIETNAM 39% of THAILAND 1 office Group PBT 155 offices 324 367 301 PHILIPPINES 252 305 366 300 1 office 272 99 61 71 MALAYSIA 178 159 1

8. Slide 8: Strong Capital and Leverage Ratios

   Strong Capital and Leverage Ratios Reported Common Equity Tier 1 CAR, Tier 1 CAR, Total CAR 21.6 22.5 21.6 21.3 21.0 18.9 (Common Equity 18.1 17.8 17.4 16.9 16.5 16.4 16.4 16.4 16.3 16.1 15.2 15.1 15.0 14.7 14.7 14.7 14.4 14.3 14.2 Tier 1 CAR; 13.9 13.8 13.8 13.4 13.2 13.0 13.0 13.0 12.5 12.1 11.6 1

9. Slide 9: 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 45.3% 0.97% 86.1% Aa1 AA– AA– OCBC a1 42.3% 1.16

10. Slide 10: Strong Investment Grade Credit Ratings

    Strong Investment Grade Credit Ratings Aa1/Stable/P-1 AA– /Stable/A-1+ AA– /Stable/F1+  ‘Very strong buffers of capital, loan loss  ‘Prudent management team…emphasis on funding  ‘Ratings reflect its strong domestic franchise, provisions and pre-provision income’ and capitalisation to buffer again

11. Slide 11: Strong UOB Fundamentals

    tit UOB Strong UOB Fundamentals 11

12. Slide 12: Disciplined Balance Sheet Management

    Disciplined Balance Sheet Management  Portfolio quality broadly stable Countercyclical Approach to General Allowances ($m) – NPL ratio stable at 1.5% $16m added 204 – High general allowances-to-loans 460 16 359 278 ratio of 1.2% 105 – Begin to build up general allowances, when possible 2,620 1,964

13. Slide 13: Diversified Loan Portfolio

    Diversified Loan Portfolio Gross Customer Loans by Geography 1 Gross Customer Loans by Currency Singapore Others Others 55% SGD 11% IDR 13% 50% 2% Greater China THB 12% 6% Indonesia 5% MYR 10% Thailand 6% Malaysia USD 11% 19% Gross Customer Loans by Maturity Gross Customer Loans by Industry Housing

14. Slide 14: Exposure to China

    Exposure to China Total as of 30 Jun Bank exposure in China 2017 = SGD28.4b  99% with <1 year tenor or 8.3% of total assets  Around 80% accounted for by top 5 domestic banks and policy banks  Trade exposures mostly with bank counterparties, Bank, representing close to half of bank exposure SGD18.

15. Slide 15: Exposure to Commodities

    Exposure to Commodities Oil and gas As of Traders/ Other commodity Upstream Total 30 Jun 2017 downstream segments industries2 industries Total exposure1 SGD4.3b SGD10.1b SGD9.2b SGD23.6b Outstanding SGD3.7b SGD5.8b SGD7.0b SGD16.5b loans 4% of total loans 7% of total loans  Total exposure, includin

16. Slide 16: Stable Asset Quality; High Allowances Coverage

    Stable Asset Quality; High Allowances Coverage Largely Stable NPL Ratio High Allowances Coverage 4,500 1.6% 2.0% 1.4% 1.5% 1.5% 1.5% 6,000 200% 125.6% 112.4% 118.0% 118.1% 113.9% 4,000 100% 3,500 1.0% 1.5% 5,000 1.4% 1.2% 1.1% 1.2% 615 0% 3,000 1,025 1,194 1,179 530 4,000 517 0.0% -100% 2,500 350 77

17. Slide 17: Easing Specific Allowances; Total Credit Costs Stable

    Easing Specific Allowances; Total Credit Costs Stable Allowances on Loans 57bp from 36bp from 2000 800 existing NPLs existing NPLs 100bp 100bp 1800 700 76bp 1600 45bp 53bp 49bp 30bp 32bp 32bp 50bp 600 32bp 32bp 50bp 1400 32bp 500 32bp 32bp 32bp 30bp 1200 23bp 19bp 0bp 0bp 8bp 12bp 1000 400 800 300 (

18. Slide 18: Countercyclical Approach in General Allowance Supports High Reserve Cover

    Countercyclical Approach in General Allowance Supports High Reserve Cover Total 150.0% 125.6% 112.4% 118.0% 118.1% 113.9% Allowances / Total NPL (%) 100.0% General 50.0% Allowances / Gross Loans 0.0% net of Specific 1.5% 1.4% 1.2% 1.1% 1.2% Allowances (%) -50.0% 4,500 4,000 Specific Allowances 3,500

19. Slide 19: Stable Liquidity Position

    Stable Liquidity Position Customer Loans and Deposits; Loan/Deposit Ratios (LDR); and Liquidity Coverage Ratios (LCR) All-currency LCR (%) 167% 148% 162% 154% 157% SGD LCR (%) 224% 213% 275% 232% 203% 95.0% 91.9% 89.7% 89.7% 89.9% 87.8% SGD LDR (%) 85.0% 85.0% 86.8% 86.7% 86.1% 84.0% Group LDR (%) 7

20. Slide 20: Disciplined Wholesale Funding Strategy

    Disciplined Wholesale Funding Strategy Wholesale Funding Strategy Diversification in Debt Instruments Issued  Diversification among global markets Absolute amount of Covered Debts Issued as at Bonds  Multiple funding instruments ranging from 30 June 2017 8% AT1 subordinated capital to senior to se

21. Slide 21: Embarking on Journey of Sustainability Reporting

    Embarking on Journey of Sustainability Reporting Highly Material Factors Material Factors Important Factors 2016 Annual Report in accordance to Global Reporting Initiatives’ (GRI) G4 guidelines and select indicators from GRI’s Financial Services Sector Disclosures paper. 21

22. Slide 22: Regulatory Developments

    tit UOB Regulatory Developments 22

23. Slide 23: 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

24. Slide 24: Banking Regulations Still Evolving

    Banking Regulations Still Evolving 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Basel III capital Phased-in Full ratios Leverage ratio Disclosure phase tbf7 LCR1 Phased-in Full NSFR2 tbf7 SACCR3 Start FRTB4 Start TLAC5 Phased-in Full Basel IV6 Evolving IFRS 9 Start Banks need to be profitable i

25. Slide 25: Macroeconomic Outlook

    itt UOB Macroeconomic Outlook 25

26. Slide 26: China's Growth Slower but Low Risk of Hard Landing

    China’s Growth Slower but Low Risk of Hard Landing  While China’s GDP growth rate is slowing, the annual increase in absolute GDP has been stable.  The Chinese economy has its underlying momentum, supported by rebalancing reforms and steady job market.  Low central government debt underpins China

27. Slide 27: Brexit Impact on Asian Markets via Trade and Investment Channels

    Brexit Impact on Asian Markets via Trade and Investment Channels  It is a challenge to quantify Brexit effects with EU & UK Export Mix of Selected Partners (2015) certainty at this stage.  The immediate impact on Asian economies is likely 19% to be limited and shallow, considering the low export 1

28. Slide 28: Implication on Regional Policy Rates

    Implication on Regional Policy Rates 3Q16 4Q16 1Q17 2Q17 3Q17f 4Q17f 1Q18f 2Q18f 3Q18f 4Q18f US 10-Year 1.59 2.44 2.39 2.30 2.60 2.80 2.90 3.00 3.20 3.30 Treasury US Fed Funds 0.50 0.75 1.00 1.25 1.25 1.50 1.75 2.00 2.00 2.25 SG 3M SOR 0.67 1.01 0.86 0.75 1.00 1.30 1.40 1.50 1.50 1.70 MY Overnight P

29. Slide 29: Southeast Asia: Resilient Key Markets

    Southeast Asia: Resilient Key Markets Significantly Higher Foreign Reserves Healthier Current Account Balances (USD billion) (% of GDP) 265 20.1 185 15.2 125 100 9.7 75 30 24 26 1.8 Singapore Thailand Indonesia Malaysia –2.0 –1.8 –1.9 1998 2017 (latest available) –5.9 Singapore Malaysia Thailand Ind

30. Slide 30: Manufacturing Sector to Continue To Lead Singapore GDP in 2017

    Manufacturing Sector to Continue To Lead Singapore GDP in 2017  Advance 2Q17 GDP growth was at 2.5% yoy (1Q17: MAS Expected To Maintain Neutral SGD +2.5%), supported mainly by robust expansion in the 129 electronics and precision engineering clusters, and Easing Round 1 Easing Round 2 Easing Round

31. Slide 31: Southeast Asia Banking Sector: Strong Fundamentals Remain Intact

    Southeast Asia Banking Sector: Strong Fundamentals Remain Intact Key Banking Trends Higher NIM in Lightly Penetrated Markets  Southeast Asian banks have healthy capital and funding (Net interest margin and private-sector credit / GDP, in %) levels 6.6 6.2 — Singapore banks have among the highest ca

32. Slide 32: 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 (2Q07 = 100) (%) HK, 316 7.7 EU, 8.2 MY, 210 4.4 US, 4.7 AU, 171 CH, 4.0 HK, 3.1 100 SG, 129 SG, 1.9 TH, 118 2.6 2Q07 2Q09 2Q11 2Q13 2Q15 2Q17 2006 2008 2010

33. Slide 33: 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

34. Slide 34: Appendix

    4 YOR Appendix

35. Slide 35: Latest Financials

    itt UOB Latest Financials 35

36. Slide 36: 1H17 Financial Overview

    1H17 Financial Overview Net Profit After Tax1 (NPAT) Movement, 1H17 vs 1H16 (SGD m) 118 21 131 174 88 57 66 +5.5% 1,566 1,652 +7.0% +13.1% +3.5% +7.2% +31.7% >100.0% +20.0% 1H16 net Net interest Fee income Other non- Expenses Total Share of Tax and 1H17 net profit after income interest allowances pr

37. Slide 37: 2Q17 Financial Overview

    2Q17 Financial Overview Net Profit After Tax1 (NPAT) Movement, 2Q17 vs 1Q17 (SGD m) 52 9 0 38 6 10 18 807 +4.6% 845 +4.0% +1.7% –0.1% +4.0% –3.4% –28.9% –8.7% 1Q17 net Net interest Fee income Other non- Expenses Total Share of Tax and 2Q17 net profit after income interest allowances profit of non- p

38. Slide 38: Net Interest Income Rose on Growth in Loans and Margins

    Net Interest Income Rose on Growth in Loans and Margins Net Interest Income (NII) and Margin 9,000 2,200 3.00% 3.00% 2.12% 2.26% 2.20% 2.23% 2.13% 2.09% 2.14% 2.14% 2.06% 8,000 2,000 2.00% 2.00% 1.72% 1.71% 1.77% 1.71% 1.68% 1.69% 1.69% 1.73% 1.75% 1,800 1.00% 1.00% 7,000 0.76% 0.82% 0.71% 0.50% 1,6

39. Slide 39: Broad-based increase in loan portfolio

    Broad-based increase in loan portfolio QoQ YoY Jun-17 Mar-17 +/(–) Jun-16 +/(–) Gross Loans 1 SGD b SGD b % SGD b % By Geography Singapore 125.4 125.1 +0.3 119.9 +4.6 Regional: 79.5 80.6 –1.4 72.8 +9.2 Malaysia 26.1 25.6 +2.2 25.4 +2.9 Thailand 13.9 13.7 +1.6 11.6 +19.3 Indonesia 11.5 11.4 +1.0 11.4

40. Slide 40: Steady Non-Interest Income Mix Underpins Diversity

    Steady Non-Interest Income Mix Underpins Diversity Non-Interest Income (Non-NII) and Non-NII Ratio 50.0% 50.0% 38.7% 38.9% 38.8% 38.1% 40.2% 39.7% 38.6% 37.9% 5,000 1400 40.0% 37.1% 40.0% 25.8% 23.5% 23.4% 24.0% 30.0% 26.2% 1200 23.4% 24.1% 24.0% 23.7% 30.0% 4,000 20.0% 20.0% 1000 3,122 3,071 10.0%

41. Slide 41: Broad-based Focus in Fee Income

    Broad-based Focus in Fee Income Breakdown of Fee Income (SGD m) (SGD m) 2,000 1,883 1,931 531 517 508 93 492 25 1,731 1,749 74 500 475 23 21 1,800 59 20 68 114 258 263 21 66 66 1,600 67 273 66 39 268 121 134 37 36 400 33 1,400 113 31 111 102 1,200 498 482 134 114 300 114 124 490 1,000 504 800 136 41

42. Slide 42: Staff Costs Tightly Managed as IT Investments Continue

    Staff Costs Tightly Managed as IT Investments Continue Operating Expenses and Expense / Income Ratio 44.7% 45.9% 50.0% 45.8% 47.2% 45.1% 45.6% 50.0% 43.1% 45.0% 42.2% 5,000 1400 40.0% 40.0% 1200 4,000 3,696 30.0% 30.0% 3,597 995 1000 927 957 957 918 3,146 2,898 20.0% 20.0% 3,000 1,291 1,360 800 349

43. Slide 43: IT Investments Geared towards Products and Digital Capabilities

    IT Investments Geared towards Products and Digital Capabilities IT investments over 2014-2016 (cSGD0.7b) Security, 4% Increase in Fee and Trading Capabilities Global Market Platform Customer flow income: +8%1 Regulatory, 17% Cash Management Product Data mobility/ capabilities, Transaction banking in

44. Slide 44: Formation of Non-Performing Assets Remains Elevated but Contained within Specific Sectors

    Formation of Non-Performing Assets Remains Elevated but Contained within Specific Sectors 2Q16 3Q16 4Q16 1Q17 2Q17 SGD m SGD m SGD m SGD m SGD m NPA at start of period 3,016 3,164 3,632 3,480 3,543 New NPA 802 780 387 424 537 Upgrades, recoveries and (548) (201) (320) (293) (255) translations Write-

45. Slide 45: NPL Ratio Stable at 1.5%

    NPL Ratio Stable at 1.5% NPL ratio 1.4% 1.6% 1.5% 1.5% 1.5% NPLs1 (SGD m) 3,056 3,496 3,328 3,399 3,466 3,600 255 285 245 257 3,100 303 261 206 307 304 Others 176 2,600 565 641 638 623 564 Greater China 293 2,100 370 392 264 360 466 Indonesia 1,600 451 487 518 487 Thailand 1,100 1,614 Malaysia 1,395

46. Slide 46: Strong Capital and Leverage Ratios

    Strong Capital and Leverage Ratios 7.4% 7.5% 7.4% 7.6% 7.8% Leverage ratio 1 5.0% Total CAR 2 20.0% 15.9% 16.6% 16.2% 17.3% 17.8% 0% 18.0% 16.0% 3.5% 3.5% -20000% Tier 2 CAR 2 2.7% 3.1% 3.1% 14.0% 0.6% 0.5% 0.1% 0.1% 0.1% Tier 1 CAR 2 12.0% -40000% 10.0% 8.0% -60000% CET1 CAR 2 13.1% 13.4% 13.0% 13.

47. Slide 47: Stable Dividend Payout

    Stable Dividend Payout 20 5 35 35 50 35 35 35 20 2014 2015 2016 1H17 Net dividend per ordinary share (¢) Interim Final Special UOB 80th Anniversary Payout amount (SGD m) 1,201 1,444 1,135 581 Payout ratio (%) 37 45 37 35 Note: The Scrip Dividend Scheme was applied to UOB 80th Anniversary dividend fo

48. Slide 48: Our Growth Drivers

    Our Growth Drivers {itt VOB

49. Slide 49: 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

50. Slide 50: Wholesale Banking: Good Traction in Growing Customer Franchise

    Wholesale Banking: Good Traction in Growing Customer Franchise Wholesale Banking Business  Stable performance in 1H 2017, amidst cautious business climate Gross Loans ($bn) Total Income ($m) – Higher loans, with growing customer +10% +8% 4000 +3% 4.00% franchise YoY YoY 3500 YoY 3.50% 3000 0% 3.00%

51. Slide 51: Group Transaction Banking: Stable Income Contributor

    Group Transaction Banking: Stable Income Contributor Trade Loans Deposits  Overall transaction banking income grew by 9% -6% CAGR +20% CAGR +42% YoY +2% YoY  Growth in trade revenue, driven by strong growth momentum in 35% 35% 33% 32% 33% 37% 39% 40% 39% 33% trade assets, despite competitive marke

52. Slide 52: Retail Banking: Growing Income with Stable Asset Quality

    Retail Banking: Growing Income with Stable Asset Quality Group Retail1 Business  Housing loans in Singapore and in the region fared well Gross Loans ($bn) Total Income ($m) +9% – Asset quality remains stable +6% 4000 YoY 4.00% +7% YoY 3500 YoY 3000 +10% 3.00%  Business Banking a growing earnings d

53. Slide 53: Digitalisation: Enriching Customer Experience

    Digitalisation: Enriching Customer Experience Examples of UOB’s digital initiatives Connectivity • Security token embedded in smartphone • Instant digital credit card issuance • Contactless ATM Ecosystem partners • hiLife and MGG • cloudBuy • BizSmart • FinLab • OurCrowd • Innoven Capital Innovation

54. Slide 54: Customer-Centric Approach in Digital

    Customer-Centric Approach in Digital Rising Digital Adoption by Customers UOB’s Digital Roadmap Group’s Transaction volumes 58% 63% Jul 52% 2017 Launches UOB MyKey for use of 67% PayNow in social messaging apps Dec 2014 2015 2016 1H17 2016 Launches UOB Mighty Secure for Digital (Internet & mobile) u

55. Slide 55: 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

56. Slide 56: Resilience of the Singapore Housing Market

    Resilience of the Singapore Housing Market 56

57. Slide 57: Dynamics Behind the Singapore Housing Market

    Dynamics Behind the Singapore Housing Market Majority Owner Occupied Low Unemployment vs. Global Peers Others, Private % 0.4% Landed, Rent, 5.2% 9.2% Private 7.7 Flats, EU, 8.2 14.4% 4.4 US, 4.7 CH, 4.0 Owner HDB HK, 3.1 Occupie Flats, d, SG, 1.9 90.8% 80.0% 2.6 2006 2008 2010 2012 2014 2016 Source:

58. Slide 58: Prudent Policies for Sustainable Prices

    Prudent Policies for Sustainable Prices Residential Property Price Indices 160 140 120 2013: Introduction of 100 TDSR 80 2011: Introduction of 1997: Asian Crisis 2008: Onset of 2010: IntroductionABSD 60 Credit Crisis of SSD 2001: Dot Com Bubble 2003: SARS Outbreak Collapses 40 2002: HDB building pro

59. Slide 59: Singapore Home Prices Remain Competitive

    Singapore Home Prices Remain Competitive Global House Price Indices Regional House Price Indices UK, 261 HK, 337 AU, 200 US, 182 MY, 245 CA, 177 KR, 196 SG, 136 TH, 145 SG, 136 Source: Bloomberg. Note: For Australia (2003=100) as no prior data available. Source: Bloomberg. Note: For Thailand (2Q12=1

60. Slide 60: Mortgage Debt Serving Ratio Remains Low

    Mortgage Debt Serving Ratio Remains Low Low Mortgage Debt Service Ratio due to Low Interest Rates, High Income Growth and Smaller Units Mar-17 Note 1: Median Price of non-landed private residential from 1Q04 onwards Source: URA , CEIC, UOB Global Economics & Markets Research Estimates 60

61. Slide 61: Overview of our Covered Bond Program

    Overview of our Covered Bond Program 61

62. Slide 62: Our Cover Pool Profile

    Our Cover Pool Profile Overview of Cover Pool (as of Jul ‘17) Current Loan Balances Mainly <S$1m Number of Mortgage Loans 8,849 100% 3% 3% 3% 3% 3% 3% 3% Total Current Balance (SGD) 5,543,840,830 90% 7% 6% 6% 6% 5% 7% 7% (SGD ‘000) 80% >4,000 Average Current Loan Balance (SGD) 626,493 17% 17% 17% 16

63. Slide 63: Cover Pool has Remained Stable

    Cover Pool has Remained Stable Primarily Apartments / Condominums Diversified Geographical Distribution 100% 100% 5% 5% 4% 4% 5% 5% 5% 12% 11% 11% 11% 11% 11% 11% 90% 5% 5% 5% 5% 5% 5% 5% 90% 4% 4% 4% 4% 4% 5% 5% 80% 9% 9% 9% 9% 9% 9% 9% 80% 19% 19% 19% 19% 19% 19% 19% Others 70% 70% 60% Intermediat

64. Slide 64: Cover Pool has Remained Stable

    Cover Pool has Remained Stable Majority Owner Occupied Loans Mainly for Purchases 100% 90% 22% 23% 24% 25% 26% 26% 26% 80% Refinance, 70% 12.6% 60% 50% Investment 40% 78% 77% 76% 75% 74% 74% 74% Owner occupied Purchase, 30% 87.4% 20% 10% 0% Mar '16 Jun '16 Sep '16 Dec '16 Mar '17 Jun '17 Jul '17 Wel

65. Slide 65: 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 (neg) / 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) Program

66. Slide 66: 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

67. Slide 67: Structure Diagram

    Structure Diagram ■ 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 on

68. Slide 68: 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

69. Slide 69: 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

70. Slide 70: 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

71. Slide 71: Covered Bond Legal Frameworks

    Covered Bond Legal Frameworks 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 mortgage loan

72. Slide 72: 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

73. Slide 73: 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

74. Slide 74: Equitable Assignment -v- Declaration of Assets Trust Structure

    Equitable Assignment -v- 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 fav

75. Slide 75: Thank You

    Thank You tt UOB RIGHT BY YOU

United Overseas Bank — Debt Investor Presentation (September 2017) on 6ix