United Overseas Bank Limited · SGX:U11
United Overseas Bank — SIAS Corporate Connect Webinar (March 2024)
22 slides from United Overseas Bank's conference presentation, March 2024
Slide 1: SIAS Corporate Connect Webinar
SIAS Corporate Connect Webinar Record Profit Supported By Growth in Core Franchise March 2024 Disc laimer: The material in this presentation contains general background information about United Overseas Bank Limited (“UOB”) and its activ it ies as at the date of the presentation. The information is
Slide 2: Agenda
1. Overview of UOB Group 2. Our Growth Drivers Agenda 3. Consistent Track Record 4. Summary 5. Q&A 2
Slide 3: Overview of UOB Group
Overview of UOB Group 3
Slide 4: UOB Overview
UOB Overview Founding Key Statistics for FY23 Founded in August 1935 by a group of Chinese ■ Gross loans : SGD321b (USD244b1) businessmen and Datuk Wee Kheng Chiang, ■ Customer deposits : SGD385b (USD292b1) grandfather of the present UOB Group CEO, Mr. Wee ■ Loan / Deposit ratio : 82.2% 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 FY23 performance by segment Myanmar 1 branch Greater China1 20 branches UOB SGD176b 3 Operating Assets under +14% Thailand Vietnam management YoY 5 branches Open profit 147 branches Malaysia Philippines Group SGD3.1b 2 AUM from 55
Slide 8: Our Growth Drivers
Our Growth Drivers 8
Slide 9: UOB’s strategic priorities
UOB’s strategic priorities Tap on rising regional Capture cross-border Forge a sustainable future affluence opportunities ▪ Acquire and serve customers via ▪ Deep and entrenched Asian ▪ Huge opportunities for green digital channels, with a focus on footprint enables UOB to capture financing as urban
Slide 10: Tapping on rising affluence and growing digitalisation in Southeast Asia
Scale Acquisition with Digital Consumers Scale UOB TMRW across ASEAN to digitally acquire at >8m Close to 1m • Tapping on rising low cost Retail customers, 76% are New-to-bank customers acquired in 2023 affluence and growing digitally enabled 514% YoY 53% digitally acquired digitalisation in Southea
Slide 11: Growing regional franchise, capturing cross-border opportunities
+9% Wholesale Strengthening Cross border income 1; Connectivity Formed 25% of GWB income customers +43% Across our ASEAN Suppliers and distributors within footprint and global • Growing regional network Financial Supply Chain Management (FSCM) solution 1 franchise, capturing cross-border Sector +13%
Slide 12: Championing Sustainability
Sustainability Supporting an orderly and just transition • Championing sustainability with ecosystem partners Extended S$44.5 billion in Making steady progress on our sustainable financing net zero commitment Supporting our clients on their decarbonisation efforts 12
Slide 13: Consistent Track Record
Consistent Track Record • If you try to asses 13
Slide 14: Growing loans without compromising asset quality
Growing loans without compromising asset quality Loan book up >10x in 20 years with asset quality staying well managed despite macro challenges Net loans Non-performing loans ratio 350 317 12.0% 10.3% 300 10.0% 250 8.0% (S$bn) 200 (%) 6.0% 150 4.0% 100 2.0% 1.5% 50 27 - 0.0% 1998 2003 2008 2013 2018
Slide 15: Diversified loan portfolio
Diversified loan portfolio Housing loans 24% Others Professionals and Transport, 6% private individuals storage and 9% communication General Industry 4% commerce 10% Building & FIs, investment construction and holding 27% companies Manufacturing Large corporates Others 13% 7% and institutions 15% 55
Slide 16: Business largely funded by customer deposits
Business largely funded by customer deposits Customer deposits Customer deposit mix 450 Others 385 4% Fixed 400 Savings deposits 350 deposits 47% 26% 300 (S$bn) 250 200 150 100 41 Current 50 accounts - 23% 1998 2003 2008 2013 2018 2023 16
Slide 17: Consistently delivering profits over the years
Consistently delivering profits over the years UOB has remained profitable over various economic cycles Total income Net profit after tax1 16,000 13,932 7,000 14,000 6,060 6,000 12,000 5,000 (S$mn) 10,000 (S$mn) 4,000 8,000 3,000 6,000 2,000 760 4,000 1,000 1,715 - 2,000 - 1998 2003 2008 2013 2018 2
Slide 18: Dividends in line with higher earnings
Dividends in line with higher earnings Net dividend per ordinary share • Dividend per share (DPS) has increased significantly 1.80 1.70 over the years 1.60 1.40 • Shareholders can expect higher DPS as earnings 1.20 improve 1.00 S$ 0.80 0.60 • Comfortable with paying out ~50% of core profits as 0.60
Slide 19: Summary
Summary 19
Slide 20: Why UOB?
Why UOB? Integrated regional Balance growth with Stable management Strong fundamentals platform stability ▪ Proven track record in ▪ Truly regional bank with full ▪ Strong Common Equity ▪ Over 50% of Group’s steering the bank through ownership and control of Tier 1 capital adequacy earnings from hom
Slide 21: Questions & Answers
Questions & Answers 21
Slide 22: Right By You
& Right By You
United Overseas Bank — SIAS Corporate Connect Webinar (March 2024) on 6ix