United Overseas Bank Limited · SGX:U11
United Overseas Bank — Non-Deal Roadshow (April 2006)
29 slides from United Overseas Bank's roadshow presentation, April 2006
Slide 1: United Overseas Bank Investor Roadshow April 2006
United Overseas Bank Investor Roadshow April 2006 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
Slide 2: Agenda
Agenda 11 Overview Overview of of UOB UOB Group Group 22 Growth Growth and and Regional Regional Strategy Strategy 33 Infrastructure, Infrastructure, Systems Systems & & Operations Operations 44 Review Review of of Financial Financial Performance Performance 55 Capital Capital Management Management
Slide 3: Overview of UOB Group
Overview of UOB Group Established in 1935. Listed on Singapore Stock Exchange since 1970 Vast network of 503 offices in 18 countries Leading Singapore bank with strong regional platform in key Southeast Asian countries – Malaysia, Thailand and Indonesia Strong operating platform: • Market capitaliza
Slide 4: 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 5: The UOB Difference
The UOB Difference Proven Proven Execution Execution Track Track Record Record Sizable Sizable and and Regional Regional Strong Strong Balance Balance Aspiration Aspiration Sheet Sheet Focused Focused on on Strong Strong Long Long Term Term Management Management Returns Returns Team Team Pragmatic P
Slide 6: Proven Execution Track Record
Proven Execution Track Record Profit (S$mm) 1,800 2005:S$1,709mm Acquired BOA in 2004 Acquired 1,600 Buana in 2005 1,400 1,200 Acquired 1,000 OUB in 2001 2000:S$913mm 800 Acquired Acquired 1995:S$633mm ICB in 1987 600 FEB in 1984 Acquired UOBR & 400 Acquired UOBP in 1999 LWB in 1973 200 1990:S$226mm
Slide 7: Agenda
Agenda 11 Overview Overview of of UOB UOB Group Group 22 Growth Growth and and Regional Regional Strategy Strategy 33 Infrastructure, Infrastructure, Systems Systems & & Operations Operations 44 Review Review of of Financial Financial Performance Performance 55 Capital Capital Management Management
Slide 8: Market Leader in Singapore
Market Leader in Singapore Highest brand value #1 credit card issuer and among all Singapore acquirer in Singapore financial institutions Built up investment Market leader in private banking capabilities and property segment extend into the region Focus on customer- related business for Leading SME
Slide 9: Venturing Beyond Singapore
Venturing Beyond Singapore See the region as key to our long term growth given strategic location of Singapore UOB has unique competitive advantages venturing into the region • Familiar with the markets to seize opportunities • Natural flow of customers’ regional expansions • Existing infrastructure
Slide 10: Established Southeast Asia Platform
Established Southeast Asia Platform Malaysia • Long-established history with good local knowledge and understanding of customers and market • Largest foreign branch network with 39 branches/offices • Focus on consumer and SME and expand sales and distribution channels for wealth management Thailand
Slide 11: Beyond the Four Pillars
Beyond the Four Pillars China • Deepen market understanding through existing network and possible future tie-ups. Continue with organic growth and branch expansion but keep eye for strategic alliances and merger & acquisition • Expanding capability in Renminbi banking services and capturing opportun
Slide 12: Agenda
Agenda 11 Overview Overview of of UOB UOB Group Group 22 Growth Growth and and Regional Regional Strategy Strategy 33 Infrastructure, Infrastructure, Systems Systems & & Operations Operations 44 Review Review of of Financial Financial Performance Performance 55 Capital Capital Management Management
Slide 13: IT Management Philosophy
IT Management Philosophy Differentiation through customer segmentation and service Leveraging volume to create infrastructure scale Fast and measurable benefits 13 SG000L6D
Slide 14: Operating Infrastructure – Track Record Of Execution
Operating Infrastructure – Track Record Of Execution Integrated Thailand operations and IT systems in 12 months (UOB Radanasin and Bank of Asia), on 28 Nov 2005 to become Myanmar UOB (Thai) Laos Re-engineered all branch operations in Thailand Vietnam Singapore. Focus on sales, operational Cambodia e
Slide 15: Infrastructure Investment
Infrastructure Investment IT Operating Expenditure Expense To Income Ratio As A % Of Revenue 80% 8.0% 6.6% 6.3% 5.8% 5.9% UOBT 60% 6.0% UOB 5.9% Group Gartner Buana (Indonesia) 5.0% 5.0% 38% 38% 40% 35% UOB 4.0% Group 4.1% 35% UOBM 20% 2.0% 2002 2003 2004 2005 2002 2003 2004 2005 UOB Group UOB Malay
Slide 16: Focus 2006 – 2007
Focus 2006 – 2007 Leveraging on tested business models and rolling out best practices to the region Myanmar Singapore Laos • Focus on fee income and deepening wallet share: structured products & Thailand Vietnam wealth management Cambodia Malaysia • Consumer Banking Malaysia Thailand Singapore • Cre
Slide 17: Agenda
Agenda 11 Overview Overview of of UOB UOB Group Group 22 Growth Growth and and Regional Regional Strategy Strategy 33 Infrastructure, Infrastructure, Systems Systems & & Operations Operations 44 Review Review of of Financial Financial Performance Performance 55 Capital Capital Management Management
Slide 18: Strong Operating Performance
Strong Operating Performance 2002 2003 2004 2005 2005 / 2004 Operating Profit * S$1,960mm S$2,064mm S$2,032mm S$2,337mm ↑ 15.0% Net Profit After Tax S$1,006mm S$1,202mm S$1,452mm S$1,709mm ↑ 17.7% Earnings Per Share S$0.64 S$0.77 S$0.93 S$1.11 ↑ 20.1% Cash ROE 9.5% 10.9% 12.4% 12.9% ↑ 0.5% pt Non-In
Slide 19: Higher Net Interest Income and Loan Margin
Higher Net Interest Income and Loan Margin Net Interest Income and Margin 3.12% 3.13% 3.18% 3.01% 3.21% 3.24% 2.99% 3.12% 3.08% 2.22% 2.25% 2.10% 1.99% 2.05% 2.06% 1.93% 1.96% 1.97% 2,128 2,348 2,071 2,155 583 614 562 574 578 2002 2003 2004 2005 4Q04 1Q05 2Q05 3Q05 4Q05 Net Interest Income (S$mm) Av
Slide 20: Non-Interest Income Up 28.1% against 2004
Non-Interest Income Up 28.1% against 2004 Non-Interest Income (Non-NII) and Non-NII Ratio 37.6% 40.3% 34.5% 33.9% 37.7% 36.8% 414 29.9% 34.6% 35.2% 1,414 350 334 121 316 1,104 298 1,089 514 115 906 93 131 148 398 501 406 293 900 234 706 204 186 186 501 588 2002 2003 2004 2005 4Q04 1Q05 2Q05 3Q05 4Q0
Slide 21: Stable Operating Expenses
Stable Operating Expenses Operating Expenses and Expense / Income Ratio 37.6% 37.9% 35.4% 34.7% 42.3% 38.3% 38.1% 39.3% 1,424 35.5% 1,227 222 1,074 1,095 404 188 364 347 353 60 199 199 319 56 56 55 52 2002 2003 2004 2005 4Q04 1Q05 2Q05 3Q05 4Q05 Operating Expenses (S$mm) IT Expenses (S$mm) Expense /
Slide 22: Profit Contribution by Business Segment
Profit Contribution by Business Segment Business Segment 2005 2005 Institutional : 47% 2005 2004 Incr/(Decr) Segment Pre-tax Profit * S$mm S$mm % Individual : 25% Other : 9% Asset Individual Financial Services 548 503 8.9 Management : 5% Global Treasury : Institutional Financial Services 1,034 791 3
Slide 23: Higher Operating Profit Contribution From Overseas Operations
Higher Operating Profit Contribution From Overseas Operations Geographical Segment 2005 2005 2005 2004 Incr/(Decr) Singapore : 73% Operating Profit * S$mm S$mm % ASEAN : 17% Singapore (including ACU) 1,706 1,522 12.1 Asia-Pacific : 4% Other ASEAN countries 409 317 29.0 Rest of the world : 6% Other A
Slide 24: Measured Growth in Loans and Deposits
Measured Growth in Loans and Deposits Customer Loans, Deposits and L/D Ratio 81.4 % 80.1 % 80.3 % 78.9 % 78.5 % 80.5 83.3 85.5 79.0 80.1 64.3 64.1 64.6 65.7 67.1 Dec'04 Mar'05 Jun'05 Sep'05 Dec'05 Net Customer Loans *(S$bn) Customer Deposits (S$bn) Loans / Deposits (L/D) Ratio (%) * included amount
Slide 25: Decrease in NPLs across Major Countries
Decrease in NPLs across Major Countries Group: NPLs (S$mm) 5,484 4,728 4,563 4,290 3,931 NPL Ratio 8.0% 6.9% 6.7% 6.2% 5.6% 492 414 379 1,170 372 1,099 1,045 419 873 973 906 682 679 717 651 2,949 2,533 2,460 2,228 1,955 Dec'04 Mar'05 Jun'05 Sep'05 Dec'05 Singapore Malaysia Thailand Other 25 SG000L6D
Slide 26: Agenda
Agenda 11 Overview Overview of of UOB UOB Group Group 22 Growth Growth and and Regional Regional Strategy Strategy 33 Infrastructure, Infrastructure, Systems Systems & & Operations Operations 44 Review Review of of Financial Financial Performance Performance 55 Capital Capital Management Management
Slide 27: Approach to Capital Management
Approach to Capital Management Strong capital position for strategic flexibility • Track record of investing capital efficiently • Continue to focus on strengthening our Asian banking franchise • In absence of opportunities, option to return excess capital to shareholders Ensuring capital efficiency
Slide 28: Strong Capital Position
Strong Capital Position Capital Adequacy Ratio Capital Structure (%) 100 16.1% 15.6% 15.4% 20 15.0% 29 15.0% 39 80 41 60 5 40 80 71 11.0% 10.9% 11.0% 59 56 10.1% 9.9% 20 0 Dec'04 Mar'05 Jun'05 Sep'05 Dec'05 Dec'02 Dec'03 Dec'04 Dec'05 Total CAR Tier 1 CAR Shareholders’ Equity Upper Tier 2 Hybrid Tie
Slide 29: Consistently High Dividend Payouts
Consistently High Dividend Payouts Includes Share Return of excess Buyback of capital S$351mm Return of excess S$500mm (Dividend in Specie) capital S$230mm (Dividend in Specie) S$1,244mm S$1,089mm S$720mm S$748mm 28.5cts 18.8cts 40cts 40cts 40cts 25cts 15cts 20cts 20cts 20cts 2002 2003 2004 2005 Int
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