United Overseas Bank Limited · SGX:U11

United Overseas Bank — The 11th Credit Suisse Asian Investment Conference 2008

21 slides from United Overseas Bank's conference presentation, Apr 2, 2008

  1. Slide 1: The 11th Credit Suisse Asian Investment Conference 2008

    The 11th Credit Suisse Asian Investment Conference 2008 Lee Wai Fai Chief Financial Officer 2 April 2008 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

  2. Slide 2: Agenda

    Agenda 11 Business Business Overview Overview 22 Financial Financial Overview Overview 2

  3. Slide 3: UOB Overview

    UOB Overview Founding Key Statistics Founded in August 1935 by a Total Assets: S$175.0 billion group of Chinese businessmen Shareholder’s Equity: S$17.3 billion and Datuk Wee Kheng Chiang, Gross Loans: S$94.6 billion grandfather of the present UOB Customer Deposits: S$107.0 billion Group CEO, Mr Wee

  4. Slide 4: Execution Track Record

    Execution Track Record Profit (S$ million) 2,200 2007: S$2,109m Acquired Buana in 2005 2,000 2006*: S$1,882m 1,800 Acquired BOA in 2004 2005: S$1,709m 1,600 1,400 Acquired OUB 2004:S$1,452m in 2001 1,200 1,000 Acquired ICB in 1987 2000:S$913m Acquired FEB 800 in 1984 1995:S$633m Acquired 600 UOBR &

  5. Slide 5: Established Global Presence

    Established Global Presence Total Assets Breakdown More than 500 offices in 18 countries Singapore : 65% USA - 3 Singapore - 72 Rest of the world : 13% Canada - 1 China - 11 Indonesia - 218 Greater China : 5% France - 1 Indonesia : 2% Hong Kong - 7 Thailand - 154 UK - 1 Thailand : 6% Malaysia : 9% T

  6. Slide 6: The UOB Difference

    The UOB Difference Well-Established Regional Network Strong Management Well-Diversified Team Portfolio Focus on Proven Long-Term Execution Track Returns Record Keen Understanding of Markets & Customers 6

  7. 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

  8. Slide 8: Expand Southeast Asia Franchise

    Expand Southeast Asia Franchise Malaysia – Accelerating growth Thailand – Ready to expand • Strong growth momentum in 2007 despite • 2007 a year of consolidation competition • Getting ready to scale up – strengthened • Able to compete effectively with our long- balance sheet & infrastructure establi

  9. Slide 9: Next Growth Phase – Beyond the Four Pillars

    Next Growth Phase – Beyond the Four Pillars China • Newly locally incorporated China subsidiary. Operates 8 branches (including Puxi sub-branch). Intends to expedite branch network expansion • Focus on organic growth targeting affluent consumer & institutional segments • Seek strategic investments/a

  10. Slide 10: UOB Remains Insulated From Macro Risks

    UOB Remains Insulated From Macro Risks Concerns Comments Asia fundamentally stronger Risk of US Threat of a US recession with Economic inflationary pressure, real estate Growth remains resilient, aided deflation by domestic demand of China & Slowdown India Limited UOB exposure - CDO Challenging Wide

  11. Slide 11: Agenda

    Agenda 11 Business Business Overview Overview 22 Financial Financial Overview Overview 11

  12. Slide 12: Another Record Year For 2007

    Another Record Year For 2007 YoY Key Indicators 2007 2006 * Change Contributed by both higher Operating Profit ^ ($m) 2,854 2,488 14.7% NII & Non-NII Core business remains Net Profit After Tax ($m) 2,109 1,882 12.1% strong ROE (% ) Steady upward trend 12.6 12.3 0.3%pt Driven by strong fee & 38.8 35.

  13. Slide 13: Improvement in Net Interest Income and Margin

    Improvement in Net Interest Income and Margin Net Interest Income and Margin 3.18% 3.25% 3.21% 3.28% 3.01% 3.25% 3.22%^ 3.12% 3.05% 2.10% 1.99% 1.99% 2.04% 1.99% 2.10%^ 2.04% 1.94% 1.93% 0.78% 0.58% 0.66% 0.56% 0.72% 0.55% 0.62% 0.47% 0.43% 702 762 761 714 743 2,980 114 106 69 76 2,710 89 2,155 2,34

  14. Slide 14: Strong Growth in Fee and Commission Income

    Strong Growth in Fee and Commission Income Non-Interest Income (Non-NII) and Non-NII Ratio 37.6% 35.8% 38.8% 33.9% 42.4% 41.3% 41.7% 36.2% 35.5% 21.7% 23.9% 23.7% 26.2% 27.2% 25.4% 28.8% 29.0% 1,892 21.7% 517 536 532 1,514 1,414 614 432 206 393 162 185 1,104 514 511 173 74 398 1,278 1,003 332 330 37

  15. Slide 15: Continued Infrastructure Investments

    Continued Infrastructure Investments Operating Expenses and Expense / Income Ratio 41.1% 41.4% 37.6% 37.9% 2,018 44.0% 43.6% 40.8% 39.5% 1,736 272 38.9% 256 1,424 1,227 222 188 556 497 472 504 487 74 71 67 70 64 2004 2005 2006 2007 4Q06 1Q07 2Q07 3Q07 4Q07 Operating OperatingExpenses Expenses($m) ($

  16. Slide 16: Well-Diversified and Liquid Balance Sheet

    Well-Diversified and Liquid Balance Sheet Total Assets ($m) 161,312 166,728 170,063 172,192 174,950 Cash, bal & placements with central banks 10.1% 11.3% 12.0% 12.0% 10.1% Placements & bal with 8.7% 15.2% 14.4% 11.5% 9.5% banks & agents 9.7% 9.1% 9.5% Others 9.6% 9.4% 11.3% 11.3% 11.6% Other Securit

  17. Slide 17: Strong Growth in Loans and Deposits

    Strong Growth in Loans and Deposits Customer Loans, Deposits and L/D Ratio 86.6% 80.5% 78.9% 81.3% 79.3% 107.0 104.5 104.8 99.7 95.6 92.7 85.2 82.5 79.0 76.9 Dec'06 Mar'07 Jun'07 Sep'07 Dec'07 Net NetCustomer CustomerLoans Loans($b) ($b) Customer CustomerDeposits Deposits($b) ($b) Loans Loans//Depos

  18. Slide 18: NPL Ratios Continue to Improve

    NPL Ratios Continue to Improve NPLs ($m) 3,165 2,986 2,382 2,032 1,715 NPL Ratio 4.0% 3.7% 2.8% 2.3% 1.8% 287 115 287 115 823 293 841 94 247 403 77 81 594 418 73 577 436 585 527 1,346 495 1,166 1,007 763 630 Dec'06 Mar'07 Jun'07 Sep'07 Dec'07 Singapore Malaysia Thailand Indonesia Other 18

  19. Slide 19: Strong Capital Position

    Strong Capital Position Capital Adequacy Ratio (CAR) 16.3% 16.2% 15.7% Total CAR 14.8% 14.5% ` Tier 1 CAR 11.0% 11.1% 10.8% 10.2% 10.0% Dec'06 Mar'07 Jun'07 Sep'07 Dec'07 Tier 1 Capital ($m) 11,888 12,451 12,382 12,210 12,461 Risk-Weighted Assets ($m) 108,405 111,781 114,842 120,181 124,772 19

  20. Slide 20: Maintain High Net Dividend Rate

    Maintain High Net Dividend Rate Special Dividend in Specie Final 24.2 cts 12.3 cts 22.8 cts Interim 41.0 cts 45.0 cts 32.0 cts 32.0 cts 16.0 cts 16.0 cts 16.0 cts 16.4 cts 2004 2005 2006 2007 Special Dividend - $351m * $369m $187m Cash Dividend $744m $737m $868m $929m Dividend Payout $744m $1,088m $

  21. Slide 21: In Summary

    In Summary Quality broad-based growth in 2007 2008 outlook remains positive amid challenges UOB well-placed to grow – strong core franchise; valued distribution network; financial strengths Maintain disciplined balance sheet management – well-diversified and liquid balance sheet Continue to focus on

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