United Overseas Bank Limited · SGX:U11
United Overseas Bank — Nomura Asia Equity Forum 2008
21 slides from United Overseas Bank's conference presentation, Jul 9, 2008
Slide 1: Nomura Asia Equity Forum
Nomura Asia Equity Forum 9 July 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 form and does not purport to be complete. It is not to be relied up
Slide 2: Agenda
Agenda 11 Business Business Overview Overview 22 Financial Financial Overview Overview 2
Slide 3: UOB Overview
UOB Overview Founding Key Statistics* Founded in August 1935 by a Total Assets: S$185.8 billion group of Chinese businessmen Shareholder’s Equity: S$17.0 billion and Datuk Wee Kheng Chiang, Net Customer Loans: S$94.4 billion grandfather of the present UOB Customer Deposits: S$109.6 billion Group CEO
Slide 4: Execution Track Record
Execution Track Record Profit (S$ million) 2,200 1Q08: S$529m 2007: S$2,109m 2,000 Acquired Buana in 2005 2006*: S$1,882m 1,800 Acquired BOA 2005: S$1,709m 1,600 in 2004 1,400 Acquired OUB 2004:S$1,452m in 2001 1,200 1,000 Acquired FEB Acquired ICB 2000:S$913m in 1987 800 in 1984 1995:S$633m Acquire
Slide 5: Established Global Presence
Established Global Presence Total Assets Breakdown More than 500 offices in 18 countries Singapore : 65% USA - 3 Singapore - 72 Canada - 1 Rest of the world : 14% China - 11 Indonesia - 218 Greater China : 4% France - 1 Indonesia : 2% Hong Kong - 7 Thailand - 154 UK - 1 Thailand : 5% Malaysia : 10%
Slide 6: The UOB Difference
The UOB Difference Well-Established Regional Network Strong Management Well-Diversified Team Portfolio Focus on Proven Long-Term Execution Track Returns Record Keen Understanding of Markets & Customers 6
Slide 7: Strategic Focus
Strategic Focus Information Technology Treasury Risk Consumers SMEs Management & Compliance Investment Operational Banking Excellence Human Resources To To be be recognized recognized as as aa leader leader in in consumer consumer and and SME SME banking banking services services in in the the regio
Slide 8: Expand Southeast Asia Franchise
Expand Southeast Asia Franchise Malaysia Thailand • Good growth despite competition • Good loan growth momentum • Strong governance and risk management • Infrastructure scaled up - ready to grow structure in place but maintain discipline Thailand • Leverage on strengths to enhance market • Tap oppor
Slide 9: Next Growth Phase – Beyond the Four Pillars
Next Growth Phase – Beyond the Four Pillars China • Newly locally incorporated China subsidiary. Operates 8 branches (including Puxi sub-branch). Intends to expedite branch network expansion • Focus on organic growth targeting affluent consumer & institutional segments • Strategic partnerships to ac
Slide 10: Agenda
Agenda 11 Business Business Overview Overview 22 Financial Financial Overview Overview 10
Slide 11: A Good First Quarter 2008
A Good First Quarter 2008 QoQ Key Indicators 1Q08 4Q07 Change Higher NII & disciplined cost 770 719 7.0% Operating Profit^ ($m) management Core business remains 529 506 4.6% Net Profit After Tax ($m) strong ROE* (%) Steady upward trend 12.7 12.0 0.7%pt Reflecting weaker market Non-NII / Total Income
Slide 12: Best Quarter Performance in NII and NIM
Best Quarter Performance in NII and NIM Net Interest Income and Margin 3.18% 3.25% 3.21% 3.28% 3.01% 3.22% 3.12% 3.15% 3.05% 2.10% 1.99% 1.99% 2.04% 2.10% 2.20% 2.04% 1.93% 1.94% 2,710 2,980 2,155 2,348 852 762 761 714 743 2004 2005 2006 2007 1Q07 2Q07 3Q07 4Q07 1Q08 Net NetInterest InterestIncome I
Slide 13: Stable Fee and Commission Income
Stable Fee and Commission Income Non-Interest Income (Non-NII) and Non-NII Ratio 33.9% 37.6% 35.8% 38.8% 41.3% 41.7% 36.2% 35.5% 32.7% 21.7% 23.9% 23.7% 26.2% 25.4% 28.8% 29.0% 24.0% 21.7% 1,892 536 532 1,514 614 1,414 432 206 393 162 414 1,104 111 514 511 173 74 398 1,003 1,278 370 900 330 319 303
Slide 14: Continued Infrastructure Investments
Continued Infrastructure Investments Operating Expenses and Expense / Income Ratio 41.1% 41.4% 37.6% 37.9% 44.0% 43.6% 2,018 39.5% 38.9% 39.2% 1,736 272 1,424 256 1,227 222 188 556 472 504 487 496 71 67 70 64 67 2004 2005 2006 2007 1Q07 2Q07 3Q07 4Q07 1Q08 Operating OperatingExpenses Expenses($m) ($
Slide 15: Impairment Charges on Loans Remain Benign
Impairment Charges on Loans Remain Benign Individual Impairment on Loans Charged to P&L 36 bp 43 bp 31 bp 29 bp 19 bp 18 bp 16 bp 4 bp 86 67 235 215 33 10 142 155 (30) (14) bp 2004 2005 2006 2007 1Q07 2Q07 3Q07 4Q07 1Q08 Individual IndividualImpairment ImpairmentCharges Charges Individual Individual
Slide 16: NPL Ratio Continues to Improve
NPL Ratio Continues to Improve NPL^ ($m) 2,983 2,380 2,030 1,713 1,602 NPL Ratio^ 3.7% 2.8% 2.3% 1.8% 1.6% 287 115 293 841 94 247 403 77 81 73 82 577 418 68 585 436 393 527 495 504 1,163 1,005 761 628 555 Mar'07 Jun'07 Sep'07 Dec'07 Mar'08 Singapore Malaysia Thailand Indonesia Other ^ Excluding debt
Slide 17: Strong Growth in Loans and Deposits
Strong Growth in Loans and Deposits Customer Loans, Deposits and L/D Ratio 86.6% 86.1% 81.3% 79.3% 78.9% 109.6 107.0 104.5 104.8 99.7 92.7 94.3 85.2 82.5 79.0 Mar'07 Jun'07 Sep'07 Dec'07 Mar'08 Net NetCustomer CustomerLoans Loans($b) ($b) Customer CustomerDeposits Deposits($b) ($b) Loans Loans / Dep
Slide 18: Well-Diversified and Liquid Balance Sheet
Well-Diversified and Liquid Balance Sheet Total Assets ($m) 166,728 170,063 172,192 174,950 185,784 Cash, bal & placements 11.3% 12.0% 12.0% 10.1% 11.4% with central banks 8.7% 10.2% Placements & bal with 14.4% 11.5% 9.5% banks & agents 9.7% 9.1% 9.5% 10.1% Others 9.4% 11.3% 11.3% 11.6% 10.3% Other
Slide 19: Capital Position Remains Strong
Capital Position Remains Strong Capital Adequacy Ratio (CAR) 16.2% Total CAR 15.7% 14.8% 14.5% 14.3% Tier 1 CAR ` 11.1% 10.8% 10.2% 10.0% 9.9% Mar'07 Jun'07 Sep'07 Dec'07 Mar'08 Tier 1 Capital ($m) 12,451 12,382 12,210 12,461 12,011 Risk-Weighted Assets ($m) 111,781 114,842 120,181 124,772 121,304 1
Slide 20: Maintain High Net Dividend Rate
Maintain High Net Dividend Rate Special Dividend in Specie 24.2 cts 12.3 cts Final 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 $1
Slide 21: In Summary
In Summary UOB will benefit from strong domestic structural growth to drive its businesses and cushion impact from global or regional slowdown Region will provide the growth catalyst and upside potential in long-term Established a prized Southeast Asia distribution network. Ongoing investments in ou