United Overseas Bank Limited · SGX:U11
United Overseas Bank — Non-Deal Roadshow (November 2006)
33 slides from United Overseas Bank's roadshow presentation, November 2006
Slide 1: United Overseas Bank Investor Roadshow November 2006
United Overseas Bank Investor Roadshow November 2006 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
Slide 2: Agenda
Agenda 11 Overview Overview of of UOB UOB Group Group 22 Growth Growth and and Regional Regional Strategy Strategy 33 Infrastructure, Infrastructure, Systems Systems & & Operations Operations 44 Review Review of of Financial Financial Performance Performance 55 Capital Capital Management Management
Slide 3: Overview Of UOB Group
Overview Of UOB Group Established in 1935. Listed on Singapore Stock Exchange since 1970 Vast network of 504 offices in 18 countries Leading Singapore bank with strong regional platform in key Southeast Asian countries – Malaysia, Thailand and Indonesia Strong operating platform: • Market ca
Slide 4: One Of The World's Leading Credits
One Of The World’s Leading Credits Bank Financial Strength Long-Term Bank Deposit Rating Rating B+ B+ B+ Aaa B B B B B B Aa1 Aa2 Aa2 B- Aa2 Aa3 Aa3 Aa3 Aa3 C+ Aa3 C C A1 C A1 A2 C- A2 D+ D+ D+ A3 A3 A3 D+ A3 Baa1 D Baa1 D- Baa2 ABN Amro ABN Amro Kookmin Bank Kookmin Bank Maybank Shinhan Maybank Shin
Slide 5: The UOB Difference
The UOB Difference Proven Proven Execution Execution Track Track Record Record Sizable Sizable and and Regional Regional Strong Strong Balance Balance Aspiration Aspiration Sheet Sheet Focused Focused on on Strong Strong Long Long Term Term Management Management Returns Returns Team Team Pragmatic P
Slide 6: Proven Execution Track Record
Proven Execution Track Record Profit (S$mm) 9M06: S$2,034mm 1,800 Acquired 2005: S$1,709mm BOA in 2004 Acquired 1,600 Buana in 2005 1,400 1,200 Acquired 1,000 OUB in 2001 2000: S$913mm 800 Acquired Acquired 1995: S$633mm ICB in 1987 600 FEB in 1984 Acquired UOBR & 400 Acquired UOBP in 1999 LWB in 19
Slide 7: Strategic Focus
Strategic Focus Information Technology Treasury Risk Consumers SMEs Management & Compliance Investment Operational Banking Excellence Human Resources To To be be recognized recognized as as aa leader leader in in consumer consumer and and SME SME banking banking services services in in the the regio
Slide 8: Agenda
Agenda 11 Overview Overview of of UOB UOB Group Group 22 Growth Growth and and Regional Regional Strategy Strategy 33 Infrastructure, Infrastructure, Systems Systems & & Operations Operations 44 Review Review of of Financial Financial Performance Performance 55 Capital Capital Management Management
Slide 9: Singapore: Positive Macroeconomic Indicators
Singapore: Positive Macroeconomic Indicators Real GDP Growth Private Consumption Growth Foreign Direct Investments (In %) (In %) (In US$ bn) 10 8 25 8 7.3 18.2 6.4 6 20 16.2 15.6 4.4 4.1 6 4.6 15 4 4 2.5 10 2 2 5 0 0 0 2005 2006E 2007E 2005 2006E 2007E 2005 2006E 2007E Foreign Exchange Reserves Sing
Slide 10: SE Asia: Positive Macroeconomic Indicators
SE Asia: Positive Macroeconomic Indicators Real GDP Growth Private Consumption Growth Foreign Direct Investments (In %) (In %) (In US$ bn) Malaysia Thailand Indonesia Malaysia Thailand Indonesia Malaysia Thailand Indonesia 10 12 6 5.2 5.0 9.2 8 10 5 4.0 4.0 4.1 4.1 6.0 3.8 3.7 5.3 5.6 5.6 5.3 5.5 8
Slide 11: Market Leader In Singapore
Market Leader In Singapore Highest brand value #1 credit card issuer and among all Singapore acquirer financial institutions Built up investment Market leader in private banking capabilities and property segment extend into the region Focus on customer- related business for Leading SME player sustai
Slide 12: Venturing Beyond Singapore
Venturing Beyond Singapore See the region as key to our long-term growth given strategic location of Singapore UOB has unique competitive advantages venturing into the region • Familiar with the markets to seize opportunities • Natural flow of customers’ regional expansions • Existing infrastruc
Slide 13: Established Southeast Asia Platform
Established Southeast Asia Platform Malaysia Thailand Long-established history with Completed integration of BOA and good local knowledge and UOBR, becoming 8th largest understanding of customers and commercial bank in Thailand market Scale increased more than 3 Largest foreign branch ne
Slide 14: Beyond The Four Pillars
Beyond The Four Pillars China • Deepen market understanding through existing network and possible future tie-ups. Continue with organic growth and branch expansion but keep eye for strategic alliances and M&As • Expanding capability in Renminbi banking services and capturing opportunities that com
Slide 15: Overseas Expansion On Track
Overseas Expansion On Track Regionalisation efforts seeing results. Established strong SEA platform. ASEAN’s 9M06 pre-tax profit grew 84% yoy. Operations outside ASEAN key to achieving well-balanced global portfolio. Promote synergies across countries, products and customers in expanded region
Slide 16: Agenda
Agenda 11 Overview Overview of of UOB UOB Group Group 22 Growth Growth and and Regional Regional Strategy Strategy 33 Infrastructure, Infrastructure, Systems Systems & & Operations Operations 44 Review Review of of Financial Financial Performance Performance 55 Capital Capital Management Management
Slide 17: IT Management Philosophy
IT Management Philosophy Differentiation through customer segmentation and service Leveraging volume to create infrastructure scale Fast and measurable benefits 17
Slide 18: Operating Infrastructure – Track Record Of Execution
Operating Infrastructure – Track Record Of Execution Integrated Thailand operations and IT systems in 12 months (UOB Radanasin and Bank of Asia), on 28 Nov 2005 to become UOB (Thai) Re-engineered all branch operations in Thailand Singapore. Focus on sales, operational efficiency, mobile sales te
Slide 19: Infrastructure Investment
Infrastructure Investment IT Operating Expenditure Expense-To-Income Ratio As A % Of Revenue 8.0% 100% 6.6% 6.3% 5.8% 5.9% 80% 5.8% 6.0% UOB 5.9% Group* Thailand Gartner 60% 5.0% 5.0% 41% Indonesia 4.0% 38% 38% 4.1% 40% 35% 35% UOB Group* Malaysia 20% 2.0% 2002 2003 2004 2005 9M06 2002 2003 2004 200
Slide 20: 2006 & Beyond
2006 & Beyond Investment focus • Roll out tested business models and best practices to the region • Basel II IRB adoption by 2008 • Regional Disaster Recovery & Backup facilities Thailand Bring about ability to scale, better risk management, overall improvement in IT infrastructure and operation
Slide 21: Agenda
Agenda 11 Overview Overview of of UOB UOB Group Group 22 Growth Growth and and Regional Regional Strategy Strategy 33 Infrastructure, Infrastructure, Systems Systems & & Operations Operations 44 Review Review of of Financial Financial Performance Performance 55 Capital Capital Management Management
Slide 22: Strong Operating Performance
Strong Operating Performance 2002 2003 2004 2005 9M2006 Operating Profit* S$1,960mm S$2,064mm S$2,032mm S$2,337mm S$2,379mm Net Profit After Tax S$1,006mm S$1,202mm S$1,452mm S$1,709mm S$2,034mm Earnings Per Share S$0.64 S$0.77 S$0.93 S$1.11 S$1.59 Cash ROE 9.5% 10.9% 12.4% 12.9% 16.7% Non-Interest
Slide 23: Higher Net Interest Income & Loan Margin
Higher Net Interest Income & Loan Margin Net Interest Income and Margin 3.12% 3.13% 3.18% 3.01% 3.24% 3.19% 3.29% 3.26% 3.08% 2.22% 2.25% 2.10% 1.99% 1.93% 1.96% 2.04% 1.97% 1.97% 2,128 2,348 2,071 2,155 653 671 684 614 578 2002 2003 2004 2005 3Q05 4Q05 1Q06 2Q06 3Q06 Net Interest Income (S$mm) Aver
Slide 24: Significant Non-Interest Income Contribution
Significant Non-Interest Income Contribution Non-Interest Income (Non-NII) and Non-NII Ratio 37.6% 40.3% 34.5% 33.9% 37.7% 29.9% 34.9% 414 31.6% 33.0% 1,414 350 350 121 337 1,089 1,104 514 310 115 127 116 906 82 398 501 406 293 900 234 228 706 222 221 501 588 2002 2003 2004 2005 3Q05 4Q05 1Q06 2Q06*
Slide 25: Stable Operating Expenses
Stable Operating Expenses Operating Expenses and Expense / Income Ratio 37.6% 37.9% 42.7% 41.6% 35.4% 34.7% 39.5% 38.1% 39.3% 1,424 1,227 222 1,095 419 424 1,074 404 396 188 353 59 59 199 60 56 199 55 2002 2003 2004 2005 3Q05 4Q05 1Q06 2Q06* 3Q06 Operating Expenses (S$mm) IT Expenses (S$mm) Expense
Slide 26: Higher Profit Contribution From Overseas Operations
Higher Profit Contribution From Overseas Operations Geographical Segment 9M06 9M06 9M06 9M05 Incr/(Decr) Singapore : 68% Profit Before Tax* S$mm S$mm % ASEAN : 21% Singapore (including ACU)** 1,200 1,295 (7.3) Asia-Pacific : 4% Other ASEAN countries 370 201 84.1 Rest of the world : 7% Other Asia-Pac
Slide 27: Growth In Loans & Deposits
Growth In Loans & Deposits Customer Loans, Deposits and L/D Ratio 81.4 % 82.8 % 78.5 % 76.5 % 78.2 % 85.5 88.1 89.8 89.0 79.0 73.7 70.2 64.3 67.1 67.4 Dec'04 Dec'05 Mar'06 Jun'06 Sep'06 Net Customer Loans (S$bn) Customer Deposits (S$bn) Loans / Deposits (L/D) Ratio (%) 27
Slide 28: Decrease In NPLs Across Major Countries
Decrease In NPLs Across Major Countries Group: NPLs (S$mm) 5,484 3,931 3,950 3,836 3,532 NPL Ratio 8.0% 5.6% 5.6% 5.3% 4.6% 492 1,170 419 452 464 873 408 906 926 978 961 651 678 620 2,949 620 1,955 1,894 1,774 1,543 Dec'04 Dec'05 Mar'06 Jun'06 Sep'06 Singapore Malaysia Thailand Other 28
Slide 29: Agenda
Agenda 11 Overview Overview of of UOB UOB Group Group 22 Growth Growth and and Regional Regional Strategy Strategy 33 Infrastructure, Infrastructure, Systems Systems & & Operations Operations 44 Review Review of of Financial Financial Performance Performance 55 Capital Capital Management Management
Slide 30: Approach To Capital Management
Approach To Capital Management Strong capital position for strategic flexibility • Capital position strengthened by divestment gain and reduction in earmarked capital for the non-core assets • Track record of investing capital efficiently • Continue to focus on strengthening our Asian banking fran
Slide 31: Strong Capital Position
Strong Capital Position Capital Adequacy Ratio Capital Structure 16.5% (%) 16.1% 16.0% 16.1% 15.6% 100 20 29 80 41 39 37 60 5 5 11.2% 11.2% 40 80 11.0% 11.0% 71 10.8% 59 59 56 20 0 Dec'04 Dec'05 Mar'06 Jun'06 Sep'06 Dec'02 Dec'03 Dec'04 Dec'05 Sep'06 Total CAR Tier 1 CAR Shareholders' Equity Hybrid
Slide 32: Consistently High Dividend Payouts
Consistently High Dividend Payouts Includes Share Return of excess Buyback of capital S$351mm S$500mm (Dividend in Includes Share Return of excess Specie) Buyback of capital S$230mm (Dividend in Specie) S$1,244mm S$231mm S$1,088mm S$720mm S$748mm S$719mm 28.5cts 18.8cts 40cts 40cts 40cts 25cts 20cts
Slide 33: Awards & Accolades
Awards & Accolades “Best Corporate “Best FIG Borrower – “Best Domestic Bank – Governance – Asia” Singapore” Singapore” 2005 & 2006 2006 2006 “Top 10 Best Managed “Best Bank - Singapore” “Bank of The Year – Companies – Singapore” “Best Sub-Custodian Bank Singapore” “Top 10 Best Investor – Singapore”
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