United Overseas Bank Limited · SGX:U11
United Overseas Bank — FY2009 Earnings Presentation
27 slides from United Overseas Bank's earnings presentation, Feb 26, 2010
Slide 1: UOB Group Full Year 2009 Briefing: Financial Highlights
UOB Group Full Year 2009 Briefing Financial Highlights Lee Wai Fai Chief Financial Officer 26 February 2010 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 summ
Slide 2: Record Operating Profit of $3.33 billion
Record Operating Profit of $3.33 billion 2009 2008 + / (-) $m $m % Net interest income 3,674 3,576 2.7 Non-interest income 1,732 1,675 3.4 Total income 5,405 5,250 3.0 Less: Total expenses 2,074 2,050 1.2 Operating profit 3,331 3,200 4.1 Less: Intangible assets amortised 10 11 (3.4) Individual impai
Slide 3: Quarter on Quarter Profit up 4.3%
Quarter on Quarter Profit up 4.3% 4Q09 3Q09 + / (-) 4Q08 + / (-) $m $m % $m % Net interest income 892 925 (3.6) 957 (6.9) Non-interest income 350 396 (11.6) 391 (10.4) Total income 1,242 1,322 (6.0) 1,348 (7.9) Less: Total expenses 554 510 8.6 532 4.1 Operating profit 688 812 (15.2) 817 (15.7) Less:
Slide 4: Net Interest Income & Margins remained steady
Net Interest Income & Margins remained steady Net Interest Income and Margin 3.19% 3.07% 3.25% 3.21% 3.04% 3.03% 2.92% 3.09% 3.02% 2.45% 2.41% 2.39% 2.27% 2.36% 2.35% 2.28% 1.99% 2.04% 1.29% 1.26% 1.18% 1.21% 1.09% 1.13% 0.93% 0.66% 0.56% 957 949 908 925 892 150 188 157 175 167 3,576 3,674 2,710 2,9
Slide 5: Higher Non-Interest Income Year-on-Year
Higher Non-Interest Income Year-on-Year Non-Interest Income (Non-NII) and Non-NII Ratio 37.8% 38.8% 31.4% 30.0% 35.8% 31.9% 29.0% 28.2% 32.0% 23.7% 26.2% 20.8% 18.1% 17.3% 20.0% 19.9% 17.0% 15.4% 1,892 1,732 551 1,675 1,514 614 434 580 391 396 350 755 326 511 194 132 162 103 1,278 1,003 1,095 976 22
Slide 6: Disciplined Cost Management
Disciplined Cost Management Operating Expenses and Expense / Income Ratio 41.1% 41.4% 39.0% 38.4% 44.6% 39.4% 38.6% 35.5% 35.7% 2,018 2,050 2,074 532 520 554 1,736 491 510 272 285 281 76 66 75 71 68 256 2006 2007 2008 2009 4Q08 1Q09 2Q09 3Q09 4Q09 Operating OperatingExpenses Expenses($m) ($m) IT ITE
Slide 7: Prudent Provisioning Policy
Prudent Provisioning Policy Impairment Charges on Loans 76 bp 90 bp 90 bp 84 bp 75 bp 47 bp 59 bp 71 bp 66 bp 50 bp 33 bp 60 bp 63 bp 19 bp 18 bp 43 bp 604 182 169 151 157 324 127 142 155 2006 2007 2008 2009 4Q08 1Q09 2Q09 3Q09 4Q09 Individual IndividualImpairment ImpairmentCharges Chargeson onLoans
Slide 8: Broad Based Business Growth
Broad Based Business Growth 2006 2009 2009 2006 2009 2008 + / (-) PFS : 29% $m $m % Segment Operating Profit * Personal Financial Services (PFS) 975 920 6.0 GMIM : 30% Institutional Financial Services (IFS) 1,498 1,412 6.1 Other : (4)% IFS : 45% Global Markets & Investment Mgt (GMIM) 985 853 15.5 Ot
Slide 9: Operating Growth in Singapore and Overseas
Operating Growth in Singapore and Overseas 2009 2009 At constant Singapore : 69% 2009 2008 + / (-) FX rate Operating Profit * $m $m % % Malaysia : 11% Thailand : 4% Singapore (including ACU) 2,308 2,230 3.5 3.5 Indonesia : 5% Total Overseas 1,023 970 5.5 6.9 Greater China : 3% Malaysia 361 330 9.2 1
Slide 10: Stabilising Asset Quality
Stabilising Asset Quality NPA ($m) 2,305 2,449 2,755 2,737 2,722 279 254 462 264 243 2,476 2,483 2,062 2,185 2,260 Dec'08 Mar'09 Jun'09 Sep'09 Dec'09 Loans Loans($m) ($m) Debt Debtsecurities securities($m) ($m) 10
Slide 11: Improved NPL amid recovering economies
Improved NPL amid recovering economies NPL ($m) 2,062 2,185 2,476 2,483 2,260 NPL Ratio * 2.0% 2.1% 2.4% 2.4% 2.2% 415 472 287 282 239 109 111 105 119 95 107 106 101 89 60 431 416 409 391 430 495 483 435 512 438 759 822 931 894 923 Dec'08 Mar'09 Jun'09 Sep'09 Dec'09 Singapore Malaysia Thailand Indon
Slide 12: Movement in NPL
Movement in NPL 2009 2008 4Q09 3Q09 $m $m $m $m Opening Balance 2,062 1,713 2,483 2,476 New / Existing 1,155 982 298 347 Write-off (377) (172) (167) (90) Payment / Declassification (580) (461) (354) (250) Closing Balance 2,260 2,062 2,260 2,483 12
Slide 13: Adequate Impairment Coverage
Adequate Impairment Coverage Total Impairment 2,548 2,577 2,813 2,901 2,857 ($m) 203.7% 191.5% 185.9% 192.1% 185.3% 110.5% 105.2% 102.1% 106.0% 105.0% 1,165 1,186 1,200 1,008 1,068 1,540 1,509 1,648 1,715 1,657 Dec'08 M ar'09 Jun'09 Sep'09 Dec'09 Collective CollectiveImpairment Impairment($m) ($m) I
Slide 14: Higher Customer Loans and Deposits
Higher Customer Loans and Deposits Customer Loans, Deposits and L/D Ratio 84.5% 83.5% 83.6% 84.4% 81.6% 118.2 119.4 116.5 121.5 117.0 99.8 99.7 97.8 98.3 99.2 Dec'08 Mar'09 Jun'09 Sep'09 Dec'09 Net NetCustomer CustomerLoans Loans($b) ($b) Customer CustomerDeposits Deposits($b) ($b) Loans Loans//Depo
Slide 15: Singapore (incl ACU) – Summarised P/L
Singapore (incl ACU) – Summarised P/L 2009 2008 +/(-) 4Q09 3Q09 +/(-) $’m $’m % $’m $’m % Net interest income 2,300 2,156 6.7 551 573 (3.8) Non-interest income 1,223 1,225 (0.2) 244 276 (11.9) Total income 3,522 3,380 4.2 794 849 (6.4) Less: Total expenses 1,214 1,150 5.6 318 291 9.1 Operating profi
Slide 16: Singapore (incl ACU) – Key Financial Indicators
Singapore (incl ACU) – Key Financial Indicators 2009 2008 +/(-) 4Q09 3Q09 +/(-) % % % pt % % % pt Net interest margin 2.06 2.00 0.06 2.00 2.07 (0.07) Non-NII / Total income 34.7 36.2 (1.5) 30.7 32.6 (1.9) Expense / Total income 34.5 34.0 0.5 40.0 34.3 5.7 Customer loans (net) – $’m 65,637 63,451 3.4
Slide 17: Malaysia – Summarised P/L
Malaysia – Summarised P/L 2009 2008 +/(-) 4Q09 3Q09 +/(-) RM’m RM’m % RM’m RM’m % Net interest income 961 987 (2.6) 242 241 0.4 Non-interest income 426 310 37.4 103 88 17.0 Total income 1,387 1,297 6.9 345 329 4.9 Less: Total expenses 511 516 (1.0) 159 115 38.3 Operating profit 876 781 12.2 186 214
Slide 18: Malaysia – Key Financial Indicators
Malaysia – Key Financial Indicators 2009 2008 +/(-) 4Q09 3Q09 +/(-) % % % pt % % % pt Net interest margin 2.37 2.56 (0.19) 2.23 2.36 (0.13) Non-NII / Total income 30.7 23.9 6.8 29.9 26.7 3.2 Expense / Total income 36.8 39.8 (3.0) 46.1 35.0 11.1 Customer loans (net) – RM’m 28,851 28,313 1.9% 28,851 2
Slide 19: Thailand – Summarised P/L
Thailand – Summarised P/L 2009 2008 +/(-) 4Q09 3Q09 +/(-) THB’m THB’m % THB’m THB’m % Net interest income 7,013 7,578 (7.5) 1,764 1,795 (1.7) Non-interest income 2,790 3,292 (15.2) 617 696 (11.4) Total income 9,803 10,870 (9.8) 2,381 2,491 (4.4) Less: Total expenses 6,404 6,977 (8.2) 1,599 1,598 0.1
Slide 20: Thailand – Key Financial Indicators
Thailand – Key Financial Indicators 2009 2008 +/(-) 4Q09 3Q09 +/(-) % % % pt % % % pt Net interest margin 3.80 4.08 (0.28) 3.79 4.01 (0.22) Non-NII / Total income 28.5 30.3 (1.8) 25.9 27.9 (2.0) Expense / Total income 65.3 64.2 1.1 67.2 64.2 3.0 Customer loans (net) – THB’m 137,547 153,971 (10.7)% 1
Slide 21: Indonesia – Summarised P/L
Indonesia – Summarised P/L 2009 2008 +/(-) 4Q09 3Q09 +/(-) IDR’b IDR’b % IDR’b IDR’b % Net interest income 1,918 1,600 19.9 463 493 (6.1) Non-interest income 649 397 63.5 138 136 1.5 Total income 2,567 1,997 28.5 601 629 (4.5) Less: Total expenses 1,339 1,123 19.2 326 374 (12.8) Operating profit 1,2
Slide 22: Indonesia – Key Financial Indicators
Indonesia – Key Financial Indicators 2009 2008 +/(-) 4Q09 3Q09 +/(-) % % % pt % % % pt Net interest margin 6.40 6.07 0.33 6.47 6.49 (0.02) Non-NII / Total income 25.3 19.9 5.4 23.0 21.6 1.4 Expense / Total income 52.2 56.2 (4.0) 54.2 59.5 (5.3) Customer loans (net) – IDR’b 22,977 23,542 (2.4)% 22,97
Slide 23: China – Summarised P/L
China – Summarised P/L 2009 2008 +/(-) 4Q09 3Q09 +/(-) CNY’m CNY’m % CNY’m CNY’m % Net interest income 374 484 (22.7) 84 91 (7.7) Non-interest income * 35 96 (63.5) 9 11 (18.2) Total income 409 580 (29.5) 93 102 (8.8) Less: Total expenses 255 245 4.1 74 67 10.4 Operating profit 154 335 (54.0) 19 35
Slide 24: China – Key Financial Indicators
China – Key Financial Indicators 2009 2008 +/(-) 4Q09 3Q09 +/(-) % % % pt % % % pt Net interest margin 2.87 3.42 (0.55) 2.80 3.02 (0.22) Non-NII / Total income 8.6 16.6 (8.0) 9.7 10.8 (1.1) Expense / Total income 62.3 42.2 20.1 79.6 65.7 13.9 Customer loans (net) – CNY’m 9,394 10,621 (11.6)% 9,394 9
Slide 25: Capital Position Strengthened
Capital Position Strengthened Capital Adequacy Ratios 18.5% 19.0% 17.3% 17.5% 15.3% Total CAR 14.0% 13.5% 12.3% 12.6% 10.9% Tier 1 CAR ` 11.3% 11.9% 10.3% 10.6% Core Tier 1 9.0% CAR Dec'08 Mar'09 Jun'09 Sep'09 Dec'09 $m Core Tier 1 Capital 10,307 10,978 11,074 11,462 11,978 Tier 1 Capital 12,456 13,
Slide 26: Maintain High Dividend Payout
Maintain High Dividend Payout 24.2 12.3 41.0 45.0 40.0 40.0 16.0 16.4 20.0 20.0 2006 2007 2008 2009 Net Netdividend dividend per perordinary ordinaryshare share(¢) (¢) Interim Interim Final Final Special Special Dividend Payout ($m) 1,237 1,113 903 904 Dividend Payout Ratio (%) 48 53 47 48 26
Slide 27: In Summary …
In Summary … Record operating profit of $3.33 billion Core business income remained steady Continuing discipline in cost management Stabilising asset quality, NPL ratio at 2.2% Tier 1 and total CAR strengthened to 14.0% and 19.0% respectively Maintain high dividend payout 27