United Overseas Bank Limited · SGX:U11
United Overseas Bank — FY2016 Earnings Presentation
8 slides from United Overseas Bank's earnings presentation, Feb 17, 2017
Slide 1: Full Year 2016 Results: Stable Core Earnings in Slower Operating Environment
Full Year 2016 Results Stable Core Earnings in Slower Operating Environment Wee Ee Cheong Deputy Chairman and Chief Executive Officer 17 February 2017 Discla imer: Th is mater ial that follo ws is a prese ntat io n of genera l ba ckgrou nd informat ion ab out the Ba nk’s act ivities current at the d
Slide 2: Stable Performance from Core Businesses
Stable Performance from Core Businesses FY16 profit: S$3.1bn, slightly lower YoY – Higher net interest income and fee income offset by lower investment income Net interest income up 1.3% to S$5bn, led by healthy loan growth – Loans: +8.8% YoY, with selective targeting of quality credits – NIM: -
Slide 3: Disciplined Balance Sheet Management
Disciplined Balance Sheet Management Portfolio quality broadly stable Countercyclical Approach to General Allowances ($m) – NPL ratio up slightly at 1.5% 204 80 460 – High general allowances-to-loans 359 358 ratio of 1.2% – 32bps total credit costs maintained 2,709 1,964 S$1.1bn Proactive liabil
Slide 4: Wholesale Banking: Steady Franchise Growth; Broader Portfolio Quality Sound
Wholesale Banking: Steady Franchise Growth; Broader Portfolio Quality Sound Wholesale Banking’s loans and income Wholesale Banking Business up in 2016 Gross Loans ($bn) Total Income ($m) +10% +6% +10% 4500 +10% +13% +3% 2.40% YoY YoY YoY YoY YoY YoY Bottom line dampened by higher 4000 3500 2.20%
Slide 5: Group Transaction Banking: Stable Income Contributor
Group Transaction Banking: Stable Income Contributor Trade Loans Deposits Cash management CAGR CAGR increasing in significance +12% +16% 35% 33% Healthy growth in trade 37% 39% 40% 30% 33% loans with focus on 41% increasing client wallet 59% 63% 61% 60% 70% 67% 65% 67% share 2013 2014 2015 2016
Slide 6: Retail Banking: Growing Income with Stable Asset Quality
Retail Banking: Growing Income with Stable Asset Quality Housing loans a key driver for Retail Group Retail Business Banking’s1 loan growth in 2016; Gross Loans ($bn) Total Income ($m) regional housing loans +11% YoY +8% +3% +7% +9% +11% +9% – Asset quality remains stable YoY YoY YoY 4000 YoY YoY
Slide 7: Looking Ahead
Looking Ahead Volatile and less predictable environment, with focus on US and China Confident of ASEAN’s fundamental strengths – Regional countries have fiscal flexibility to support domestic growth – Growing regional connectivity, within ASEAN and China-ASEAN – UOB well-placed to help support c
Slide 8: Thank You
Thank You tt UOB RIGHT BY YOU