United Overseas Bank Limited · SGX:U11
United Overseas Bank — Q2 2005 Earnings Presentation
12 slides from United Overseas Bank's earnings presentation, Jul 29, 2005
Slide 1: UOB Group First Half / Second Quarter 2005 Results Briefing
UOB Group First Half / Second Quarter 2005 Results Briefing Presentation by Wee Ee Cheong Deputy Chairman & President 29 July 2005 Singapore Company Reg No. 193500026Z 1
Slide 2: Disclaimer
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 is not to be relied upon as advice to investors or potentia
Slide 3: Panel Members
Panel Members Mr Wee Ee Cheong Deputy Chairman & President Mr Samuel Poon SEVP, Institutional Financial Services & Operations Mr Terence Ong SEVP, Global Treasury & Asset Management Mr Francis Lee SEVP, Personal Financial Services & International Mr Chong Kie Cheong SEVP, Investment & Priv
Slide 4: Agenda
Agenda Overview Of 1st Half 2005 Results Building Regional Platform In Summary 4
Slide 5: Challenging Operating Environment
Challenging Operating Environment Slower economic growth across the region Loan growth in Singapore remains sluggish Continued price pressure due to intense competition Flattening yield curve limits gapping opportunities 5
Slide 6: Credible Results Amidst Challenges
Credible Results Amidst Challenges 1H05 1H04 2Q05 2Q04 Net Profit After Tax $815m $705m $409m $347m Cash ROE 12.8% 12.0% 13.6% 11.9% Non-Interest Income / Total Income 36.0% 33.7% 36.8% 31.3% Offshore Profit Contribution 23.8% 19.5% 25.8% 18.0% Expense / Income Ratio 36.9% 34.4% 38.3% 36.2% Jun 05 M
Slide 7: Credible Results Amidst Challenges – Continued Growth In Strategic Businesses
Credible Results Amidst Challenges – Continued Growth In Strategic Businesses Gross customer loans rose 7.3% yoy Growth in Core Customer Loan margins increased despite drop in NIM Business Increase of 26.4% in fund management fees Sustained Trade-related fees up, in tandem with 23.7% Momentu
Slide 8: Credible Results Amidst Challenges – Maintain Discipline & Prudence
Credible Results Amidst Challenges – Maintain Discipline & Prudence Cost under control despite continued investments Asset quality remained prudently managed. NPL ratio improved further Strong capital position 8
Slide 9: Building Regional Platform
Building Regional Platform Achieved Significant Progress in Laying Groundwork - Towards 40% Offshore Profit Contribution Target by 2010 Established next leg of Southeast Asian platform with additional 30% stake in Bank Buana • Opens up access to consumer segment in Indonesia • Leverage on Bank Bua
Slide 10: Building Regional Platform (Cont'd)
Building Regional Platform (Cont’d) Progressing well in integrating Thailand’s operation • Successfully hubbed BOA’s credit card system to Singapore • Operational integration on track for completion by end-2005 Further build on Malaysian franchise for growth Rationalising Philippines operation
Slide 11: Capital Management
Capital Management CAR remains strong Renewal of share buy back mandate provides flexibility for further capital management initiatives Made progress in non-core asset divestment • Initiated divestment of 34.7% stake in UOL Maintain high dividend payout • Interim dividend of 20.0% on top of
Slide 12: In Summary …
In Summary … Held our ground well despite challenging economic backdrop. Maintain leadership position in Singapore Remain upbeat in region’s long term prospects despite short term uncertainties Continue to expand cross-border capabilities & geographical footprint Enhanced position & clear st