United Overseas Bank Limited · SGX:U11
United Overseas Bank — H1 2016 Earnings Presentation
8 slides from United Overseas Bank's earnings presentation, Jul 28, 2016
Slide 1: First Half 2016 Results: Steady Performance Amidst Market Volatilities
First Half 2016 Results Steady Performance Amidst Market Volatilities Wee Ee Cheong Deputy Chairman and Chief Executive Officer 28 July 2016 Disclaimer: This material that follows is a presentation of general background information about the Bank’s activities current at the date of the presentation.
Slide 2: Stable Performance Amidst Cyclical Slowdown
Stable Performance Amidst Cyclical Slowdown 1H16 profit: S$1.6bn, relatively unchanged YoY – Higher net interest income and trading income partially offset by higher expenses Net interest income higher, led by steady loan growth – Loans: +4.9% YoY growth across industries and countries – NIM: -3
Slide 3: Disciplined Balance Sheet Management
Disciplined Balance Sheet Management Resilient balance sheet – Stable NPL ratio: 1.4% – High general allowances-to-loans ratio of 1.5% – Strong NPL coverage: 125.6% Strong funding and capital base – Liquidity Coverage Ratios: SGD (224%) and all-currency (167%) – Healthy fully-loaded CET1 ratio1
Slide 4: Wholesale Banking: Steady Performance
Wholesale Banking: Steady Performance Wholesale banking’s loans and income Wholesale Banking Business up in 1H16 despite weaker macro Gross Loans ($bn) Total Income ($m) environment +13% +6% +5% 4000 YoY 4.00% YoY YoY 3500 3.50% 3000 +6% 3.00% Financial Institutions segment doing 2500 2000 YoY R
Slide 5: Group Transaction Banking Continues to Grow
Group Transaction Banking Continues to Grow Trade Loans Deposits One of main pillars for 23% CAGR 15% CAGR wholesale banking +4% YoY +1% YoY 35% 36% 38% Cash management grows 37% 39% 42% 39% 30% 33% with significant mandates 41% 63% 61% 65% 64% 62% 58% 61% 70% 67% 59% Good traction from trade
Slide 6: Retail Banking: Growing Income with Stable Asset Quality
Retail Banking: Growing Income with Stable Asset Quality Group Retail Business Growth in retail banking1 income Gross Loans ($bn) Total Income ($m) outpaced loan growth in 1H16 4000 +11% 4.00% +5% YoY +3% YoY 3500 Singapore housing loan portfolio’s YoY 3000 3.00% 2500 +8% YoY ROA3 growth improve
Slide 7: Looking Ahead
Looking Ahead Uncertain outlook; low interest rates globally even as pick-up in credit costs expected Banking industry being reshaped through digital connectivity These cyclical and structural factors present opportunities, especially in Asia – Reinforced by government initiatives towards tigh
Slide 8: Thank you
i} UOB Thank you