United Overseas Bank Limited · SGX:U11

United Overseas Bank — FY2006 Earnings Presentation

22 slides from United Overseas Bank's earnings presentation, Feb 28, 2007

  1. Slide 1: UOB Group Full Year 2006 Results Briefing

    UOB Group Full Year 2006 Results Briefing FINANCIAL HIGHLIGHTS Lee Wai Fai Chief Financial Officer 28 February 2007 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

  2. Slide 2: Agenda

    Agenda 11 Review Review of of Financial Financial Performance Performance 22 Business Business & & Geographical Geographical Segments Segments 33 Loans, Loans, Deposits Deposits & & Asset Asset Quality Quality 44 Review Review of of Key Key Territories Territories 55 Capital Capital Management Manag

  3. Slide 3: Record Profit of $2.57 billion

    Record Profit of $2.57 billion 2006 2005 + / (-) $m $m % Net interest income 2,710 2,348 15.5 Non-interest income 1,514 1,414 7.1 Total income 4,224 3,761 12.3 Less: Total expenses 1,736 1,424 21.9 Operating profit 2,488 2,337 6.4 Less: Intangible assets amortised / impaired 13 60 (79.2) Other impai

  4. Slide 4: Quarter-on-Quarter Profit Up 16.0%

    Quarter-on-Quarter Profit Up 16.0% 4Q06 3Q06 + / (-) 4Q05 + / (-) $m $m % $m % Net interest income 702 684 2.6 614 14.4 Non-interest income 517 337 53.4 414 24.8 Total income 1,219 1,021 19.3 1,028 18.6 Less: Total expenses 497 424 17.1 404 23.0 Operating profit 722 597 20.9 623 15.8 Less: Intangibl

  5. Slide 5: Higher Net Interest Income and Loan Margin

    Higher Net Interest Income and Loan Margin Net Interest Income and Margin 3.13% 3.18% 3.25% 3.01% 3.24% 3.19% 3.29% 3.26% 3.25% 2.25% 2.10% 1.99% 1.99% 2.04% 1.96% 1.97% 1.97% 1.99% 2,710 653 671 684 702 2,348 614 2,071 2,155 2003 2004 2005 2006 4Q05 1Q06 2Q06 3Q06 4Q06 Net NetInterest InterestIncom

  6. Slide 6: Higher Fee and Commission Income

    Higher Fee and Commission Income Non-Interest Income (Non-NII) and Non-NII Ratio 40.3% 42.4% 37.6% 35.8% 34.5% 33.9% 34.9% 31.6% 33.0% 517 372 1,514 1,414 414 185 511 350 337 1,089 1,104 121 310 514 398 127 82 116 501 1,003 332 900 293 221 706 222 228 588 2003 2004 2005 2006 4Q05 1Q06 2Q06 3Q06 4Q06

  7. Slide 7: Continue Infrastructure Investments

    Continue Infrastructure Investments Operating Expenses and Expense / Income Ratio 42.7% 41.6% 41.1% 39.3% 39.5% 40.8% 37.6% 37.9% 34.7% 1,736 497 244 404 419 424 70 1,424 396 1,227 60 59 59 1,095 222 56 188 199 2003 2004 2005 2006 4Q05 1Q06 2Q06 3Q06 4Q06 Operating OperatingExpenses Expenses($m) ($m

  8. Slide 8: Lower Impairment Charges on Loans Year-on-Year

    Lower Impairment Charges on Loans Year-on-Year Individual Impairment on Loans Charged to Profit & Loss Account 55 bp 40 bp 34 bp 35 bp 31 bp 18 bp 21 bp 15 bp 345 8 bp 235 215 142 70 59 41 27 16 2003 2004 2005 2006 4Q05 1Q06 2Q06 3Q06 4Q06 Individual IndividualImpairment ImpairmentCharges Charges In

  9. Slide 9: Profit Contribution by Business Segment

    Profit Contribution by Business Segment Business Segment 2006 2006 Institutional : 47 % Segment Pre-tax Profit * 2006 2005 + / (-) $m $m % Personal : 27 % Other : 6% Asset Management : 6 % Personal Financial Services 630 548 15.0 Institutional Financial Services 1,110 1,034 7.4 Global Treasury : 14

  10. Slide 10: Higher Operating Profit Contribution from Overseas Operations

    Higher Operating Profit Contribution from Overseas Operations Geographical Segment 2006 2006 Operating Profit * 2006 2005 + / (-) Singapore : 64% $m $m % ASEAN : 24% Singapore (including ACU) ** 1,598 1,706 (6.3) Asia-Pacific : 4% Other ASEAN countries 602 409 47.2 Rest of the world : 8% Other Asia-

  11. Slide 11: Increase in Loans and Deposits

    Increase in Loans and Deposits Customer Loans, Deposits and L/D Ratio 78.5 % 78.2 % 82.8 % 80.5 % 76.5 % 89.8 95.6 85.5 88.1 89.0 73.7 76.9 67.1 67.4 70.2 Dec'05 Mar'06 Jun'06 Sep'06 Dec'06 Net NetCustomer CustomerLoans Loans($b) ($b) Customer CustomerDeposits Deposits($b) ($b) Loans Loans//Deposits

  12. Slide 12: Continued Decrease in NPLs

    Continued Decrease in NPLs Group: NPLs ($m) 3,931 3,950 3,836 3,532 3,165 NPL Ratio 5.6% 5.6% 5.3% 4.6% 4.0% 318 352 320 101 100 144 279 926 129 906 978 287 115 961 678 823 651 620 620 594 1,955 1,894 1,774 1,543 1,346 Dec'05 Mar'06 Jun'06 Sep'06 Dec'06 Singapore Malaysia Thailand Indonesia Other 12

  13. Slide 13: Impairment Coverage Remained Adequate

    Impairment Coverage Remained Adequate Total Impairment 2,714 2,736 2,652 2,562 2,508 ($m) 79.2% 72.5% 69.0% 69.3% 69.1% 1,444 1,464 1,383 1,292 1,237 1,270 1,272 1,269 1,270 1,271 Dec'05 Mar'06 Jun'06 Sep'06 Dec'06 Collective CollectiveImpairment Impairment($m) ($m) Individual IndividualImpairment I

  14. Slide 14: Malaysia – Summarised P/L

    Malaysia – Summarised P/L 2006 2005 + / (-) 4Q06 3Q06 + / (-) RM’m RM’m % RM’m RM’m % Net interest income 708 616 15 188 188 - Non-interest income 417 332 26 138 105 31 Total income 1,125 948 19 326 293 11 Less: Total expenses 378 298 27 116 97 20 Operating profit 747 650 15 210 196 7 Less: Total im

  15. Slide 15: Malaysia – Key Financial Indicators

    Malaysia – Key Financial Indicators 2006 2005 + / (-) 4Q06 3Q06 + / (-) % % % pt % % % pt Net interest margin 3.14 2.68 0.46 3.35 3.30 0.05 Non-NII / Total income 37.1 35.0 2.1 42.3 35.8 6.5 Expense / Total income 33.6 31.4 2.2 35.6 33.1 2.5 Customer loans (net) – RM’m 20,192 17,583 14.8% 20,192 19,

  16. Slide 16: Thailand – Summarised P/L

    Thailand – Summarised P/L 2006 2005 + / (-) 4Q06 3Q06 + / (-) THB’m THB’m % THB’m THB’m % Net interest income 6,270 6,374 (2) 1,566 1,503 4 Non-interest income 2,942 2,819 4 731 824 (11) Total income 9,212 9,193 0 2,297 2,327 (1) Less: Total expenses 6,160 6,498 (5) 1,756 1,502 17 Operating profit 3

  17. Slide 17: Thailand – Key Financial Indicators

    Thailand – Key Financial Indicators 2006 2005 + / (-) 4Q06 3Q06 + / (-) % % % pt % % % pt Net interest margin 3.76 3.54 0.22 3.86 3.70 0.16 Non-NII / Total income 31.9 30.7 1.2 31.8 35.4 (3.6) Expense / Total income 66.9 70.7 (3.8) 76.4 64.5 11.9 Customer loans (net) – THB’m 146,009 149,711 (2.5%) 1

  18. Slide 18: Indonesia – Summarised P/L

    Indonesia – Summarised P/L 2006 2005* + / (-) 4Q06 3Q06 + / (-) IDR’b IDR’b % IDR’b IDR’b % Net interest income 1,346 1,021 32 373 357 5 Non-interest income 333 281 19 78 88 (11) Total income 1,679 1,302 29 451 445 1 Less: Total expenses 744 651 14 224 174 29 Operating profit 935 651 44 227 271 (16)

  19. Slide 19: Indonesia – Key Financial Indicators

    Indonesia – Key Financial Indicators 2006 2005* + / (-) 4Q06 3Q06 + / (-) % % % pt % % % pt Net interest margin 7.07 6.39 0.68 7.53 7.29 0.24 Non-NII / Total income 19.8 21.6 (1.8) 17.3 19.8 (2.5) Expense / Total income 44.3 50.0 (5.7) 49.7 39.1 10.6 Customer loans (net) – IDR’b 14,619 11,998 21.8%

  20. Slide 20: Strong Capital Position

    Strong Capital Position Capital Adequacy Ratios (CAR) 16.1% 16.0% 16.5% 16.1% 16.3% Total CAR Tier 1 CAR 11.2% ` 11.0% 11.2% 10.8% 11.0% Dec'05 Mar'06 Jun'06 Sep'06 Dec'06 $m Tier 1 Capital 10,479 10,927 11,379 11,354 11,888 Risk-Weighted Assets 95,285 97,850 101,712 105,250 108,405 20

  21. Slide 21: Total Dividend of $1 Per Share for 2006

    Total Dividend of $1 Per Share for 2006 Special Dividend in Specie 30 cts 28.5 cts Final Interim 50 cts 40 cts 40 cts 40 cts 20 cts 20 cts 20 cts 20 cts 2003 2004 2005 2006 Special Dividend - - $351m * $369m Cash Dividend $748m $744m $737m $868m Dividend Payout $748m $744m $1,088m $1,237m Dividend P

  22. Slide 22: In Summary …

    In Summary … ƒ Net profit surged 50.4% to $2.57 billion ƒ Growth was broad-based ƒ Fee income reached $1,003 million ƒ Loan growth of 14.5% year-on-year to $76.9 billion ƒ Expense-to-income ratio was 41.1% ƒ NPL ratio improved to 4.0% ƒ Total dividend payout of $1 per share 22

United Overseas Bank — FY2006 Earnings Presentation on 6ix