United Overseas Bank Limited · SGX:U11
United Overseas Bank — Investor Presentation (January 2008)
18 slides from United Overseas Bank's investor presentation, January 2008
Slide 1: United Overseas Bank QDII – Investor Meeting
United Overseas Bank QDII – Investor Meeting January 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. It i
Slide 2: A Robust Singapore Banking Industry
A Robust Singapore Banking Industry Rapid liberalization has strengthened Singapore’s competitiveness as a financial centre. Financial services accounted for 12% of nominal GDP in 3Q07 Favourable and stable environment – Strong sovereign credit ratings of Aaa (Moody’s), well-regulated banking sector
Slide 3: UOB Overview
UOB Overview Founding Key Statistics Founded in August 1935 by a Total Assets: S$172.2 billion group of Chinese businessmen Shareholder’s Equity: S$17.2 billion and Datuk Wee Kheng Chiang, Gross Loans: S$87.1 billion grandfather of the present UOB Group CEO, Mr Wee Ee Cheong Customer Deposits: S$104
Slide 4: Execution Track Record
Execution Track Record 2005 • Completed the integration of Bank of Asia and UOB Radanasin Bank, and established United Overseas Bank (Thai). 1935 Increased stake in PT Bank Buana from 23% Datuk Wee Kheng Chiang, 1980s 1999 UOB acquired a majority to 61.1% founded the United Chinese Acquired majority
Slide 5: Established International Presence
Established International Presence Total Assets Breakdown More than 500 Offices / Branches in 18 Countries Singapore : 64% USA - 3 Singapore - 72 Canada - 1 ASEAN : 18% China - 11 Indonesia - 218 France - 1 Hong Kong - 7 Thailand - 155 Asia-Pacific : 11% UK - 1 Rest of the world : 7% Taiwan - 3 Mala
Slide 6: Strategic Focus
Strategic Focus Information Technology Treasury Risk Consumers SMEs Management & Compliance Investment Operational Banking Excellence Human Resources To To be be recognized recognized as as aa leader leader in in consumer consumer and and SME SME banking banking services services in in the the regio
Slide 7: The UOB Difference
The UOB Difference Well-Established Regional Network Strong Management Well-Diversified Team Portfolio Focus on Proven Long-Term Execution Track Returns Record Keen Understanding of Markets & Customers 7
Slide 8: Financial Highlights
Financial Highlights (S$m) 2002 2006(1) ’02 – ’06 CAGR 9M07 Income Statement Net interest income 2,128 2,710 6.2% 2,237 Non interest income 906 1,514 13.7% 1,360 Total income 3,034 4,224 8.6% 3,597 Total expense 1,074 1,736 12.8% 1,463 (2) Operating profit 1,960 2,488 6.1% 2,134 Impairment charges o
Slide 9: Financial Highlights (cont’d)
Financial Highlights (cont’d) (S$m) Dec 2002 Dec 2006 ’02 – ’06 CAGR Sep 2007 Balance Sheet Total Assets 107,430 161,312 10.7% 172,192 Customer Loans (Net) 58,884 76,875 6.9% 85,161 Customer Deposits 67,919 95,552 8.9% 104,798 Tier-1 Capital Adequacy Ratio 12.2% 11.0% (2.6%) 10.2% Total Capital Adeq
Slide 10: Singapore Outlook Promising
Singapore Outlook Promising Singapore enjoys economic leadership status within ASEAN • As a key Asian financial services hub, Singapore has continued drawing a multitude of global multinational banks and corporations, thereby contributing to a strong across-the-board economic boom • Positive governm
Slide 11: Stronger Southeast Asia Economies
Stronger Southeast Asia Economies Economic fundaments across the region are much more robust than pre-1997 • Strong GDP outlook across all economies • High levels of foreign exchange reserves • FDI inflows strong and improving Economic activities more broad-based with less dependence on US economy A
Slide 12: Some Macro Risks But UOB Remains Insulated
Some Macro Risks But UOB Remains Insulated Concerns Comments Challenging macro environment with Macro fundamentals remain strong in Risk of US Inflationary pressure, real estate Asia with buoyant consumer demand Economic deflation and tightening credit and ample liquidity Slowdown Risk of a US econo
Slide 13: Expand Southeast Asia Franchise
Expand Southeast Asia Franchise Malaysia – Poised for accelerated growth Thailand – Ready for expansion • Largest foreign branch network • Focused on targeted segments. Meantime • Long-established history with good local managing balance sheet for long-term knowledge and understanding of • Infrastru
Slide 14: Next Growth Phase - China
Next Growth Phase - China Our first office in China was set up in Beijing in 1984 We have 8 branches (including Puxi sub- branch) in China Greater China is one of our key growth markets CHINA Recently gained local incorporation status. We will focus on high-end affluent consumers and foreign JV busi
Slide 15: Next Growth Phase (Cont’d)
Next Growth Phase (Cont’d) Vietnam • Seeking to grow branch network – first Singapore bank to establish presence in country (Full-service branch in Ho Chi Minh City) • Fast growing market. Opportunities in consumer banking. UOB is leading credit card merchant acquirer • Developing Vietnam as another
Slide 16: Approach To Capital Management
Approach To Capital Management Review mix of capital structure Seek Capital Option of share buyback and/or special dividend for any Efficiency excess capital Keep buffer above regulatory CAR to maintain high credit Strong Capital ratings for Strategic Reserve capital as we see opportunities in Singa
Slide 17: Awards & Accolades
Awards & Accolades “Best SME Bank in Asia “Best Local Private “Best Domestic Bank – Pacific” Bank – Singapore (2nd)” Singapore” 2007 2007 2006 “Top 10 Best Managed “Best Bank - Singapore” “Most Valuable Singapore Companies – Singapore” “Best Sub-Custodian Bank Brand – 2nd position” “Top 10 Best Inve
Slide 18: In Conclusion
In Conclusion Singapore a new growth paradigm – UOB well-positioned to capture upside Prized distribution network in region. Regional franchise value to further enhance with Asia’s growth. Best SEA proxy Regional growth potential supported by strong Singapore risk management culture Discipline in ba
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