United Overseas Bank Limited · SGX:U11
United Overseas Bank — Investor Presentation (May 2025)
48 slides from United Overseas Bank's investor presentation, May 2025
Slide 1: UOB Group: Navigating uncertainties from position of strength
UOB Group Navigating uncertainties from position of strength May 2025 Disclaimer: The mater ial in this presentation contains gener al background information about United Overseas Bank Lim ited (“UOB”) and its act ivit ies as at the d ate of the pre sentat ion. The informat ion is g iven in summary
Slide 2: Agenda
Agenda 1 Overview of UOB Group 2 Macroeconomic Outlook 3 Strong UOB Fundamentals 4 Our Growth Drivers 5 Latest Financials 2 ## RESTRICTED ##
Slide 3: Overview of UOB Group
Overview of UOB Group 3 ## RESTRICTED ##
Slide 4: UOB Overview
UOB Overview Founding Key Statistics for 1Q25 Founded in August 1935 by a group of Chinese ■ Gross loans : SGD341b (USD254b1) businessmen and Datuk Wee Kheng Chiang, ■ Customer deposits : SGD401b (USD299b1) grandfather of the present UOB Group CEO, Mr. Wee ■ Loan / Deposit ratio : 84.0% Ee Cheong. ■
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 Singapore ▪ Best SME Bank in Singapore ▪ Strong player in Singapore dollar ▪ Strong player in credit cards and ▪ Seamless access to regional treasury inst
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 a
Slide 7: Comprehensive regional banking franchise
Comprehensive regional banking franchise Extensive Regional Footprint 1Q25 performance by segment Myanmar Greater China1 Group Income 1 branch 20 branches Retail SGD189b2 Assets under Thailand 144 branches Vietnam 5 branches SGD1.3b management +6% YoY Malaysia Philippines -1% YoY 55 branches 1 branc
Slide 8: Why UOB?
Why UOB? Stable Integrated regional Strong Balance growth management platform fundamentals with stability • Proven track record • Truly regional bank • Strong Common Equity • More than half of Group’s in steering the bank with full ownership and Tier 1 capital adequacy earnings from home through var
Slide 9: Macroeconomic Outlook
Macroeconomic Outlook 9 ## RESTRICTED ##
Slide 10: ASEAN faces growth headwinds amid US tariff risks
ASEAN faces growth headwinds amid US tariff risks Singapore and Vietnam could be more vulnerable to 2024 GDP growth external demand shock 2025F GDP growth +5.0 OECD Trade in Value Added (2023) - Domestic 2026F GDP growth +4.3 +4.2 Value Added in Foreign Final Demand 25.0% High share of domestic valu
Slide 11: Expecting three 25-bps Fed cuts in 2025
Expecting three 25-bps Fed cuts in 2025 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25F 3Q25F 4Q25F US 10-Year Treasury 3.47 3.84 4.57 3.88 4.20 4.40 3.78 4.57 4.21 4.40 4.30 4.10 US Fed Funds 5.00 5.25 5.50 5.50 5.50 5.50 5.00 4.50 4.50 4.50 4.25 3.75 SG 3M SORA 3.54 3.64 3.71 3.71 3.68 3.64 3.4
Slide 12: Macro resilience across key Southeast Asian markets
Macro resilience across key Southeast Asian markets Significantly Higher Foreign Reserves (USD billion) Improved Current Account Balances (% of GDP) 381 17.5 15.6 245 157 118 75 30 24 26 1.7 2.1 Singapore Thailand Indonesia Malaysia –2.0 –1.5 –0.6 –5.4 Singapore Malaysia Thailand Indonesia Dec 1998
Slide 13: Singapore mortgages remain a low-risk asset class
Singapore mortgages remain a low-risk asset class Low risk of housing bubbles due to cooling measures High national savings rate (% of GDP) (1Q15 = 100) US , 192.4 CA , 182.8 SG, 39 AU , 164.4 SG, 144.4 HK, 27 CA, 23 AU, 22 HK, 99.2 US, 18 1Q15 2Q16 3Q17 4Q18 1Q20 2Q21 3Q22 4Q23 2020 2021 2022 2023
Slide 14: Singapore has implemented Basel IV
Singapore has implemented Basel IV5 Year ’13 ’14 ’15 ’16 ’17 ’18 ’19 ’20 ’21 ’22 ’23 ’24 ’25 ’26 ’27 Basel III capital ratios Phased-in Full IFRS 9 | Start LCR1 Phased-in Full NSFR2 | Start SACCR3 | Start date (pending) TLAC4 Phased-in Full Basel IV5 Phased-in -- MCRMR6 | Start -- Leverage ratio Dis
Slide 15: Capital adequacy rules across the region
Capital adequacy rules across the region BCBS Singapore Malaysia Thailand Indonesia Minimum CET1 CAR 4.5% 6.5%1 4.5% 4.5% 4.5% Minimum Tier 1 CAR 6.0% 8.0%1 6.0% 6.0% 6.0% Minimum Total CAR 8.0% 10.0%1 8.0% 8.5% 8.0% Capital Conservation Buffer 2.5% 2.5% 2.5% 2.5% 2.5% Countercyclical Buffer 2 n/a 0
Slide 16: Strong UOB Fundamentals
Strong UOB Fundamentals 16 ## RESTRICTED ##
Slide 17: Disciplined balance sheet management
Disciplined balance sheet management Return on risk-weighted assets Focus on 1.74% 2.16% 2.27% 2.28% Healthy 1.68% balance portfolio FY21 FY22 FY23 FY24 1Q25 sheet quality efficiency Current Account Saving Account Balances (SGD b) 3.4% CAGR1 198 189 221 221 175 FY21 FY22 FY23 FY24 1Q25 Proactive Rob
Slide 18: Healthy loans growth of 6% YoY and 1% QoQ
Healthy loans growth of 6% YoY and 1% QoQ By Industry By Geography +6% +1% 5% 5% 323 328 334 338 341 Rest of the world 47 49 49 48 49 24% Greater China 51 53 49 52 51 27% 69 69 73 74 74 ASEAN-4 $341b Mar-25 Singapore 157 158 163 164 167 9% Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 8% Note: Loans are classi
Slide 19: UOB's responsible financing journey: pragmatic and progressive
UOB’s responsible financing journey: pragmatic and progressive Establishing Improving Strengthening 2015 – 2016 2017 – 2018 2019 – 2022 2023 – 2025 • Launched the Group • Enhanced ESG • Announced our net zero commitment. • Completed the design of a net zero Responsible Financing monitoring and Stren
Slide 20: TCFD Implementation: Climate Scenario Analysis
TCFD Implementation: Climate Scenario Analysis Qualitative Transition Risk Transition Risk Scenario Physical Risk Pilot Analysis Improved Methodology Assessment Analysis Pilot 2019 2020 2021 2022-2025 • Completed qualitative • Partnered an • Conducted a pilot physical risk analysis • Developed an im
Slide 21: Net zero by 2050 commitment with focus on 6 priority sectors
In October 2022, we announced our commitment to achieving net zero by 2050, with a focus on 6 priority sectors Energy Built environment Net zero targets and commitments for six sectors We focused on two significant, high-emitting ecosystems, energy and built environment, spanning 6 sectors based on:
Slide 22: 2 years on, progressing across all priority sectors
2 years on, we are progressing across all priority sectors, and are trending below the reference pathways 22 ## RESTRICTED ##
Slide 23: Nature risks: low to medium risk portfolio
Nature risks: Our portfolio has low to medium risk, with ~20% estimated to have material impacts and/or dependencies on nature • UOB’s overall portfolio has low to medium risk based on direct sector scores • 5 sub-sectors with material impacts and/or dependencies on nature (~20% of exposure) • Agric
Slide 24: Nature opportunities in sustainable finance portfolio
Nature opportunities: ~60% of our sustainable finance portfolio is focused on the nature-climate nexus CONSTRUCTION AGRICULTURE Regenerative agri & Circular economy & Optimisation of Cultivation of organic & tech-enabled yield waste management freshwater use sustainable foods enhancement e.g. biomas
Slide 25: Comparison against peers
Comparison against peers Standalone Cost Returns Liquidity Strength Management Moody’s baseline Costs/income Return on average Loan/deposit Moody’s S&P Fitch credit assessment ratio assets (annualised) ratio Aa1 AA– AA– UOB a1 43% 1.1% 84% Aa1 AA– AA– OCBC a1 39% 1.4% 79% Aa1 AA– AA– DBS a1 38% 1.4%
Slide 26: Capital and leverage ratios
Capital and leverage ratios Reported Common Equity Tier 1 CAR 17.6% 17.4% 15.5% 14.9% 14.7% 14.6% 13.8% 13.4% 13.3% 13.2% 13.1% 12.2% 12.0% Fully-loaded 15.5% 15.2% 15.4% 1 1 1 2 2 Return on OCBC DBS UOB MBB HSBC CIMB SCB Citi BOA RBC TD CBA NAB Average Equity (annualised) 13.0% 17.3% 12.3% 11.1% 16
Slide 27: Strong investment grade credit ratings
Strong investment grade credit ratings A regular issuer in key debt capital markets globally Aa1 / P-1 AA– / A-1+ AA– / F1+ CNY Add Tier 1 (Baa1; BBB-; EUR BBB+)1 4% 12% Debt Class 12% USD Covered Currency 24% Tier 2 31% (Aaa; AAA, 14% (A2; SGD 12% NR)1 BBB+; A)1 13% Senior GBP 29% AUD (Aa1; AA-, 50
Slide 28: Our Growth Drivers
Our Growth Drivers 28 ## RESTRICTED ##
Slide 29: Our growth drivers
Our growth drivers Realise potential of Sharpen regional Reinforce fee Long-term growth our integrated focus income growth perspective platform • Provides us with ability • Global macro • Grow fee income to • Disciplined approach in to serve expanding environment remains offset competitive executing
Slide 30: Southeast Asia's immense long-term potential
Southeast Asia’s immense long-term potential Population GDP1 Southeast Asia’s immense … that UOB is uniquely growth prospects… placed to capture (Million persons) (USD trillion) ▪ Third largest population ▪ Most diverse regional globally, after China and franchise among Singapore India banks 685 723
Slide 31: Strong retail presence in high potential regional markets
Strong retail presence in high potential regional markets High Vietnam 8 2022 retail banking pool sizes 4 Philippines USD b Denotes UOB’s core markets in Southeast Asia Banking penetration Indonesia ✓ ✓ was launched growth potential ✓ in Thailand, 14 Indonesia, Singapore and Malaysia. ✓ 14 Thailand
Slide 32: 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 (2026) (SGD b) c$79b CAGR (SGD b) Thailand Vietnam c$23b c$1b c$2b c$59b +10% Singapore c$4b c$15b Malaysia c$13b +10% c$4b Hong Kong Wealth c$8b c$5b Others
Slide 33: Driving growth through diversified income streams and steady CASA growth
Driving growth through diversified income streams and steady CASA growth Group Retail Income by business segment Robust growth in CASA and wealth cushioning competitive margin pressure; wealth management income up 25% to $0.3b 1Q25 1Q24 YoY $'m $'m +18% +8% +25% Group Retail 1,341 1,354 (1%) increas
Slide 34: Latest Financials
Latest Financials 34 ## RESTRICTED ##
Slide 35: 1Q25 financial overview
1Q25 financial overview Net Profit After Tax Movement, 1Q25 vs 4Q24 (SGD m) 111 20 63 18 167 42 127 1,523 -2% 1,490 –2% +22% +25% –1% +28% –46% +97% 4Q24 net Net interest Net fee and Other non- Operating Total Share of profit Tax, 1Q25 net profit after tax income commission interest expenses allowan
Slide 36: NIM stable at 2.00%; NII eased on shorter quarter
NIM stable at 2.00% from proactive balance sheet management; NII eased on shorter quarter 2.47 2.51 2.56 2.48 2.40 Loan Margin (%) Net Interest Margin (%) 2.02 2.05 2.05 2.00 2.00 Interbank & Securities Margin (%) 1.11 1.10 1.16 0.98 1.01 -2% 2,401 2,460 2,451 2,409 2,362 416 385 404 NII from Interb
Slide 37: Double-digit fee growth supported by record loan fees
Double-digit fee growth supported by record loan fees, healthy wealth and cards momentum +14% 896 805 812 90 784 755 89 90 91 Others ($m) 93 281 273 276 Credit Card ($m) 254 304 213 173 183 Wealth ($m) 164 178 312 Loan / Trade Related ($m) 244 270 265 210 1Q24 2Q24 3Q24 4Q24 1Q25 Note: Above fees ar
Slide 38: Stronger customer-related treasury income
Stronger customer-related treasury income and good performance from trading / liquidity management activities 59 54 52 41 38 Customer-related / T&I (%) 709 527 +27% 439 466 400 Others ($m) 367 309 223 183 152 Customer-Related ($m) 270 243 219 216 215 1Q24 2Q24 3Q24 4Q24 1Q25 38
Slide 39: Maintained cost discipline with lower CIR at 42.6%
Maintained cost discipline with lower CIR at 42.6% 44.6 45.6 44.1 Cost-to-income Ratio (%) 42.4 42.6 1,626 1,570 1,579 1,559 1,534 377 Other expenses ($m) 397 401 361 379 262 268 267 253 IT-related expenses ($m) 259 Staff costs ($m) 986 912 945 905 896 1Q24 2Q24 3Q24 4Q24 1Q25 39
Slide 40: Sound asset quality with NPL ratio at 1.6%
Sound asset quality with NPL ratio at 1.6% ($m) 1Q24 2Q24 3Q24 4Q24 1Q25 NPAs at start of period 4,946 5,051 4,952 5,055 5,210 Non-individuals New NPAs _ 249 438 212 514 400 Less: Upgrades and recoveries 183 289 190 35 177 Write-offs 34 238 71 293 60 4,979 4,962 4,903 5,241 5,373 Individuals 72 (10)
Slide 41: Strengthen provision coverage with total credit costs at 35bps
Strengthen provision coverage amid macro uncertainties with total credit costs at 35bps. 52 36 35 Total credit costs (bps) 23 24 34 Specific credit costs (bps) 25 20 21 19 212 281 290 186 194 439 133 28 25 General allowance on loans ($m) 296 Specific allowance on loans ($m) 158 169 156 (15) (227) 1Q
Slide 42: Stable and prudent allowance coverage
Stable and prudent allowance coverage 33 32 32 32 Specific allowance/NPA (%) 30 General allowance on loans include 0.9 0.9 0.9 0.8 0.8 RLAR/Performing loans (%) 4,993 4,851 5,026 4,829 4,764 RLAR ($m) 379 379 379 379 379 General allowance ($m) 3,000 2,901 2,963 2,733 2,833 Specific allowance ($m) 1,
Slide 43: Exposure to Greater China
Exposure to Greater China 75.9 78.6 75.3 73.7 9.0 69.9 Debt ($b) 9.1 9.0 8.0 7.8 Non Bank ($b) 51.2 52.6 49.3 ▪ ~$2b in loans to Chinese 52.2 51.1 developers (1% of group loans) Bank ($b) 15.6 17.0 17.0 13.5 11.0 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Mainland China Hong Kong SAR Bank exposure ($8.0b) B
Slide 44: Exposure to Commercial Real Estate - Office
Exposure to Commercial Real Estate - Office Commercial Real Estate - Office exposure is 6.9% of loans By geography as % of loans • More than half of office 0.2% 0.6% Others exposure is in Singapore 0.8% 0.7% United Kingdom • Overseas exposure backed 0.8% 0.8% by strong sponsors United States Mar-25
Slide 45: Robust liquidity and funding position with healthy CASA growth
Robust liquidity and funding position with healthy CASA growth 160 149 All-currency LCR (%) 141 143 143 121 118 116 116 116 Net Stable Fund Ratio (NSFR) (%) 82.1 83.4 82.3 82.7 84.0 Loan/Deposit Ratio (LDR) (%) 470 468 467 448 450 60 61 70 64 66 Wholesale Funding ($b) 1 189 186 183 180 FD & others (
Slide 46: Strong capital position with CET1 ratio maintained at 15.5%
Strong capital position with CET1 ratio maintained at 15.5% 15.5 15.5 15.5 CET1 ratio (%) 13.9 13.4 CET1 ratio (%) 15.2 15.4 15.4 – Fully Loaded 276 284 260 269 252 RWA ($b) 1 Mar-24 Jun-24 Sep-24 Dec-24 1 Mar-25 1 Leverage ratio (%) 7.0 7.1 6.8 6.9 7.3 (1) Based on MAS Notice 637 issued on 20 Septe
Slide 47: Delivering consistent and sustainable returns to shareholders
Delivering consistent and sustainable returns to shareholders Core Dividend Capital Distribution Per ordinary share (¢) Package 180 $3 billion 170 50 cents 135 Special Dividend in 2025 120 92 85 75 Final 60 $2 billion Share Buyback by 2027 85 88 Interim 60 60 2021 2022 2023 2024 2025 to 2027 47 ## R
Slide 48: Right By You
@ Right By You
United Overseas Bank — Investor Presentation (May 2025) on 6ix