United Overseas Bank Limited · SGX:U11
United Overseas Bank — Q1 2022 Earnings Presentation
23 slides from United Overseas Bank's earnings presentation, May 2022
Slide 1: UOB Group Financial Updates
UOB Group Financial Updates Lee Wai Fai Group Chief Financial Officer For the First Quarter Ended 31 March 2022 Private and Confidential. Disclaimer: This material that follows is a presentation of general background information about UOB’s activities current at the date of the presentation. It is i
Slide 2: Financial Highlights
Financial Highlights 1Q22 key financial indicators 1Q22 NPAT down 11% QoQ as geopolitical uncertainties led to lower trading and investment Operating profit Net profit after tax income, coupled with lower general allowances write- $1.3b $0.9b - 3% QoQ - 11% QoQ - 10% YoY back - 7% YoY • NIM up 2bps
Slide 3: Performance by Segment
Performance by Segment 1Q22 1Q21 YoY ▪ Retail impacted by slower Operating Profit $m $m +/(-) % wealth activities from cautious sentiment amid Group Retail 470 574 (18) market uncertainty, mitigated by sustained CASA growth Group Wholesale Banking 939 803 17 ▪ Wholesale supported by strong franchise
Slide 4: Wholesale customers
+11%1 Strengthening Cross border income; Connectivity Formed 31%2 of GWB income Wholesale Across our ASEAN footprint 2x and global network Suppliers and distributors within customers Financial Supply Chain Management (FSCM) solution ▪ Growing regional Sector +7%3 Specialisation Loan-related fees fra
Slide 5: Consumers
Building Scale & Deepening Engagement Scale UOB TMRW across ~140k >80% Consumers ASEAN, reduce cost to serve Customers digitally Customers digitally and deepen engagement to acquired across the acquired across the region drive customer lifetime value region by UOB TMRW in in 1Q22 by UOB TMRW are 1Q2
Slide 6: Performance by Geography
Performance by 1Q22 4Q21 QoQ 1Q21 YoY Operating Profit $m $m +/(-)% $m +/(-)% Geography Singapore 666 724 (8) 724 (8) ▪ Operating profit Rest of Southeast Asia 320 298 7 342 (7) decreased largely from Malaysia 171 148 15 182 (6) Singapore and North Thailand 100 106 (6) 101 (1) Asia as market volatil
Slide 7: Financial Highlights
Financial Highlights 1Q22 4Q21 QoQ 1Q21 YoY ▪ 1Q22 profits fell as $m $m +/(-)% $m +/(-)% geopolitical uncertainties Net interest income 1,686 1,677 1 1,529 10 led to lower non-customer trading and investment Net fee income 572 580 (1) 619 (8) income (T&I) and lower general allowances write- Others
Slide 8: Net Interest Income and Margin
1.91 1.89 1.90 1.90 1.87 1.89 1.90 Net Interest Income 1.57 1.56 1.57 1.56 1.55 1.56 1.58 and Margin 0.71 0.72 0.75 0.71 0.70 0.72 0.75 6,388 ▪ NII and NIM improved by 6,035 835 1% or 2bps led by healthy 778 loan growth and rising interest rates 1,604 1,677 1,686 1,529 1,578 204 218 220 207 203 5,25
Slide 9: Fee Income
24 25 21 24 23 24 24 Fee Income 2,357 ▪ Fee income largely flat QoQ 395 1,910 ▪ Loans fees grew to a new 185 high propelled by strong 367 619 581 576 580 572 demand in lending and 134 103 96 768 97 99 94 advisory business. This is 40 41 52 53 42 moderated by wealth and 623 220 187 160 fund managemen
Slide 10: Trading & Investment Income
368 74 60 Trading & Investment 115 61 73 69 Income 966 785 ▪ Double digit QoQ growth 390 in customer-related 203 265 income (18%) supported 196 205 by franchise growth as 102 44 53 64 hedging needs rose 576 583 118 162 143 141 136 161 ▪ Others decreased due to impact from hedges as (17) interest rat
Slide 11: Expenses and Cost / Income Ratio
45.6 44.1 Expenses and 43.8 43.7 43.7 45.0 44.8 Cost / Income Ratio 4,313 4,184 12% 12% ▪ Continued focus on 14% 15% strategic investments in 1,089 1,095 1,057 1,072 1,058 people and technology to 14% 13% 12% 11% 13% 11% 11% enhance capabilities and 14% 14% 15% 16% 16% improve customer 12% 13% 13% 1
Slide 12: Non-Performing Assets
2021 2022 ($m) 1Q 2Q 3Q 4Q 1Q Non-Performing NPAs at start of period 4,608 4,544 4,547 4,772 5,077 Assets Non-individuals New NPAs _ 145 360 251 670 462 Less: ▪ Lower NPA formation Upgrades and recoveries 250 158 73 172 207 this quarter, NPL ratio Write-offs 26 202 42 205 36 stable at 1.6% 4,477 4,5
Slide 13: Total Allowance on Loans
57 29 20 22 20 20 19 Total Allowance on 24 18 20 19 19 Loans 1,579 12 10 ▪ Total credit cost was higher at 19bps due 900 mainly to higher general allowance write-back last 598 quarter 64 207 144 153 94 146 679 136 6 534 170 138 155 148 71 (2) (2) (76) 2020 2021 1Q 2Q 3Q 4Q 1Q 2021 2022 Credit costs
Slide 14: Allowance Coverage
37 35 34 31 31 1.0 1.0 1.0 1.0 0.9 Allowance Coverage 5,075 5,007 5,052 4,876 4,986 379 379 ▪ Adequate reserve buffer 379 379 379 with coverage for performing loans 3,003 3,040 3,046 2,941 2,969 maintained prudently at 0.9% 1,693 1,588 1,627 1,556 1,638 Mar Jun Sep Dec Mar ▪ NPA coverage remained 20
Slide 15: Gross Loans
Mar-22 Dec-21 Mar-21 QoQ YoY Gross Loans $b $b $b +/(-)% +/(-)% Singapore 162 158 151 3 8 ▪ Steady quality growth of Rest of Southeast Asia 64 63 63 1 2 3% QoQ mainly from Malaysia 30 30 30 (1) (1) trade and term loans in Thailand 21 21 20 0 3 Singapore Indonesia 10 10 10 3 1 Vietnam 2 2 2 12 10 ▪ Y
Slide 16: Liquidity Ratios
139 138 131 133 129 Liquidity Ratios 121 123 125 116 113 ▪ LCR at 129% and NSFR at 113% remains 87.0 86.9 85.1 87.0 87.3 well above regulatory requirements Mar Jun Sep Dec Mar 2021 2022 USD LDR (%) 62.5 62.6 60.4 61.6 66.3 All-currency LCR (%) Loan/Deposit Ratio (LDR) (%) (1) Net Stable Fund Ratio (
Slide 17: Capital
14.3 14.2 13.5 13.5 13.1 Capital 259 268 ▪ CET1 ratio healthy at 236 241 253 13.1% ▪ Higher RWA alongside loan growth Mar Jun Sep Dec Mar 2021 2022 Leverage ratio (%) 7.5 7.4 7.1 7.2 6.9 (1) RWA ($b) CET1 ratio (%) Note: (1) MAS required Banks to cap dividend payment from July 2020 to July 2021 17
Slide 18: Appendix
▪ Total Funding ▪ Loan portfolio Appendix ▪ Exposure to Greater China ▪ Exposure to Commodities 18
Slide 19: Total Funding
Mar-22 Dec-21 Mar-21 QoQ YoY Total Funding $b $b $b +/(-)% +/(-)% Singapore 248 240 226 3 10 Rest of Southeast Asia 65 67 64 (2) 2 ▪ Continue to focus on Malaysia 32 32 30 (0) 5 stable funding Thailand 23 22 21 3 7 Indonesia 10 9 9 4 8 Vietnam 1 3 3 (67) (71) ▪ Deposits grew in Others 0 0 0 (4) (14)
Slide 20: Diversified Loan Portfolio
Professionals and Housing loans private individuals 23% 8% Others 4% Transport, storage General commerce and 13% communication Industry 4% Diversified FIs, investment and Loan Portfolio holding companies Building & 12% construction Manufacturing 28% 8% Large corporates Others and institutions 14% 56
Slide 21: Exposure to Greater China
Exposure to Greater China 74.8 76.1 76.1 77.2 71.8 7.3 7.6 10.2 10.8 12.2 Debt ($b) Non Bank ($b) 47.2 48.2 49.5 48.8 51.5 Bank ($b) 17.3 19.0 16.4 16.5 13.5 Mar Jun Sep Dec Mar 2021 2022 As at 31 Mar 2022: Mainland China exposure ($26.8b or 6% of total assets) Hong Kong SAR exposure ($41.5b or 9% o
Slide 22: Exposure to Commodities
Exposure to Commodities Oil and Gas (O&G) Other Commodity Mar 22 Traders / downstream Total Upstream industries Segments2 industries1 Outstanding loans S$2.0b S$9.7b S$9.7b S$21.4b Percentage of total 4% 3% 7% loans As of 31 March 2022, outstanding loans to commodities remain modest and represented
Slide 23: Thank You
ttt OB Thank You BRA RIGHT BY YOU