United Overseas Bank Limited · SGX:U11
United Overseas Bank — FY2004 Earnings Presentation
15 slides from United Overseas Bank's earnings presentation, Feb 24, 2005
Slide 1: UOB - Premier Regional Bank: 2004 Group Results Briefing
UOB - Premier Regional Bank 2004 Group Results Briefing Address by Wee Ee Cheong Deputy Chairman & President 24 February 2005 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 informa
Slide 2: Panel Members
Panel Members Mr Wee Ee Cheong Deputy Chairman & President Mr Samuel Poon SEVP, Institutional & Individual Financial Services Mr Terence Ong SEVP, Global Treasury / Asset Management Mr Francis Lee SEVP, International Mr Chong Kie Cheong SEVP, Investment Banking Mr Kuek Tong Au EVP, Corpo
Slide 3: Agenda
Agenda 11 Overview Overview Of Of 2004 2004 Financial Financial Results Results 22 Performance Performance in in Singapore Singapore 33 Growth Growth In In The The Region Region 44 Group Group Treasury Treasury // Investment-Related Investment-Related Activities Activities 55 UOB UOB –– A A Committe
Slide 4: Overview of 2004 Financial Results
Overview of 2004 Financial Results Full year NPAT of $1.45bn, up 21% ¾ Core earnings strengthened: • 20% jump in fee & commission • 4% increase in net interest income ¾ Lower provision charges reflect improved asset quality ¾ Also helped by higher contribution from associates Cash ROE improved f
Slide 5: Key Performance Indicators
Key Performance Indicators (%) FY04 FY03 4Q04 3Q04 Cash ROE 12.4 10.9 12.8 12.7 ROA 1.19 1.10 1.16 1.20 Net Interest Margin 2.10 2.25 2.05 2.05 Non-Interest Income / Total Income 33.9 34.5 34.6 33.5 Offshore Profit Contribution 21.2 24.4 22.4 23.1 Expense / Income Ratio 37.6 34.7 42.3 39.0 Dec 04 De
Slide 6: Maintain High Dividend Rate
Maintain High Dividend Rate Dividend 18.8% in Specie 40% 40% Final 25% 25% Interim 15% 15% 20% 20% 2001 2002 2003 2004 Dividend Amount $426m $720m $748m $743m Share Buy-back - - - $500m Amount Returned to Shareholders $426m $720m $748m $1,243m % to NPAT 46% 72% 62% 86% 6
Slide 7: Performance in Singapore
Performance in Singapore Consumer & SME segments are our strongholds Consumer: ¾ Market leadership reinforced with customer-centric infrastructure, innovative product offerings & highly successful “Growth” brand platform ¾ Focus on mass affluent segment with a view to nurture long term, multi- pro
Slide 8: Performance in Singapore: SME
Performance in Singapore SME: ¾ Established SEA platform • Important attraction for SMEs with regional/overseas footprints & ambitions ¾ Significant growth in trade finance business: • Trade bills volume recorded a jump of 65% in last 2 years • On group basis, trade financing loans grew 33% & trad
Slide 9: Growth In The Region
Growth In The Region Region is key to our future 2004 was a year of significant milestones ¾ Bank of Asia - largest acquisition outside Singapore ¾ Strategic stake in PT Bank Buana Indonesia Established SEA platform will propel growth & contribution from regional business 3 key markets outsi
Slide 10: Growth In The Region - Malaysia
Growth In The Region - Malaysia Key contributor outside Singapore focusing on our forte: SME & Consumer Overall loan growth of 11% exceeds industry growth rate Sharp increase in SME fee-related business: ¾ Trade & remittances volume rose 21% Housing loan growth in line with industry growth d
Slide 11: Growth In The Region - Malaysia
Growth In The Region - Malaysia NPAT of RM377m. Achieved ROE of 21.3% Cost-income ratio of 33% Malaysia is an important anchor within SEA region Recent developments in Malaysia present good prospects for further business expansion Sound local market knowledge & extensive distribution netwo
Slide 12: Growth In The Region - Thailand
Growth In The Region - Thailand NPAT of THB822m Enlarged presence enables bank to compete effectively to achieve meaningful contribution in 3-5 years Our presence is relatively short Critical to first put in place strong operational infrastructure to support expansion & to manage risks Ope
Slide 13: Growth In The Region - Indonesia
Growth In The Region - Indonesia UOBI continues to be profitable with focus on trade & corporate banking business 23% strategic stake in Bank Buana Indonesia remains a key priority Continue to explore ways to expand in Indonesia 13
Slide 14: Group Treasury / Investment-Related Activities
Group Treasury / Investment-Related Activities Support our focus in target segments in Singapore & the region Treasury performance weaker relative to 2003 Emphasis is on growing customer-related business ¾ Combined contributions from fund management & investment- related activities rose 38% ¾
Slide 15: UOB – A Committed Regional Player
UOB – A Committed Regional Player General consensus on moderated outlook for Asia ¾ Fundamentals remain strong ¾ Different opportunities exist in each country Market dynamics are unpredictable. Keys to success: ¾ Careful selection of target segments ¾ Disciplined cultivation of customer base U