United Overseas Bank Limited · SGX:U11
United Overseas Bank — 1H 2013 Earnings Presentation
26 slides from United Overseas Bank's earnings presentation, Aug 1, 2013
Slide 1: UOB Group First Half 2013 Financial Highlights
UOB Group First Half 2013 Financial Highlights Lee Wai Fai Group Chief Financial Officer 1 August 2013 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 f
Slide 2: Record 1H13 NPAT of $1.5 billion, Up 8% YoY
Record 1H13 NPAT of $1.5 billion, Up 8% YoY 1H13 1H12 +/(-) $m $m % Net interest income 1,979 1,980 - Fee and commission income 889 748 18.9 Other non-interest income 446 511 (12.6) Total income 3,315 3,239 2.4 Less: Total expenses 1,421 1,341 6.0 Operating profit 1,894 1,897 (0.2) Less: Individual
Slide 3: 2Q13 NPAT of $783 million, Up 10% YoY and 8% QoQ
2Q13 NPAT of $783 million, Up 10% YoY and 8% QoQ. Another Quarter High 2Q13 1Q13 +/(-) 2Q12 +/(-) $m $m % $m % Net interest income 1,016 964 5.4 981 3.5 Fee and commission income 436 453 (3.7) 386 13.0 Other non-interest income 191 255 (25.1) 243 (21.3) Total income 1,643 1,672 (1.7) 1,610 2.1 Less:
Slide 4: QoQ NII Up 5% Benefited from Loan Growth, with NIM Improved to 1.71%
QoQ NII Up 5% Benefited from Loan Growth, with NIM Improved to 1.71% Net Interest Income (NII) and Margin 2.29% 2.25% 2.22% 2.13% 2.88% 2.10% 2.41% 2.29% 2.12% 2.09% 1.92% 1.84% 1.76% 1.70% 1.71% 1.92% 1.87% 1.71% 0.88% 0.97% 0.91% 0.77% 1.04% 0.87% 0.72% 0.75% 0.80% 3,917 3,678 3,532 570 1,016 634
Slide 5: Strong Momentum in Fee Income
Strong Momentum in Fee Income Non-Interest Income (Non-NII) and Non-NII Ratio 39.1% 39.7% 40.3% 41.6% 42.4% 35.5% 39.1% 39.3% 38.2% 35.9% 26.8% 23.1% 23.2% 21.1% 27.1% 26.6% 24.0% 22.4% 24.3% 20.1% 2,578 1,975 2,021 1,070 693 708 703 629 626 628 811 1,336 255 243 321 238 191 446 1,318 1,508 1,163 45
Slide 6: Expenses in Support of Business Growth
Expenses in Support of Business Growth Operating Expenses and Expense / Income Ratio 43.0% 42.3% 42.9% 41.0% 45.1% 44.2% 41.3% 41.3% 41.6% 38.9% 2,747 2,450 2,258 1,151 719 696 726 1,047 666 687 1,016 1,421 286 281 290 280 303 583 1,403 1,597 1,242 380 406 428 415 423 838 2010 2011 2012 1H13 2Q12 3Q
Slide 7: Total Credit Costs Remained Stable
Total Credit Costs Remained Stable Impairment Charges on Loans 51bp 35bp 30bp 30bp 30bp 30bp 30bp 30bp 30bp 30bp 30bp 18bp 12bp 21bp 22bp 9bp 10bp 8bp 454 198 190 163 79 82 73 41 32 2010 2011 2012 1H13 2Q12 3Q12 4Q12 1Q13 2Q13 Individual Impairment Charges on Loans ($m) Individual Impairment Charges
Slide 8: Performance by Business Segment
Performance by Business Segment 1H13 0% 12% 1H13 1H12 +/(-) 33% Segment Operating Profit $m $m % 55% Group Retail (GR) 619 575 7.7 Group Wholesale (GW) 1,045 1,027 1.8 Global Markets & Investment Mgt (GMIM) 223 272 (18.0) 1H12 1% Others 7 23 (69.6) 15% 30% Total 1,894 1,897 (0.2) 54% GR GW GMIM Othe
Slide 9: Strong Regional Performance, Operating Profit rose 9% YoY
Strong Regional Performance, Operating Profit rose 9% YoY. Overseas Contribution at 42%. 1H13 At 7% 42% 9% constant 4% FX rate 6% Operating 1H13 1H12 +/(-) +/(-) 58% Profit $m $m % % 16% Singapore 1,091 1,133 (3.7) (3.7) Regional: 666 617 7.8 9.4 1H12 Malaysia 309 303 1.9 3.2 8% Thailand 109 92 17.9
Slide 10: Steady Loans Growth Continued
Steady Loans Growth Continued 1H13 1H13 1H12 +/(-) 2Q13 1Q13 +/(-) 6% 6% 3% Gross Loans $b $b % $b $b % 5% 14% Singapore 113.7 96.4 17.9 113.7 110.0 3.4 66% Regional: 49.4 44.8 10.2 49.4 47.8 3.5 Malaysia 24.4 22.2 10.0 24.4 23.9 2.2 Thailand 9.2 7.9 16.6 9.2 9.2 (0.6) 1H12 Indonesia 5.9 5.8 2.2 5.9
Slide 11: Deposits Franchise Remained Strong
Deposits Franchise Remained Strong 1H13 1H12 +/(-) 2Q13 1Q13 +/(-) 1H13 5% Customer 5% 3% Deposits $b $b % $b $b % 5% Singapore 128.4 112.9 13.7 128.4 129.3 (0.7) 14% 68% Regional: 50.9 46.8 8.7 50.9 50.4 1.0 Malaysia 26.2 24.2 8.1 26.2 26.5 (1.3) Thailand 9.1 6.8 34.0 9.1 8.6 5.8 Indonesia 6.1 6.2
Slide 12: Healthy Liquidity Position
Healthy Liquidity Position Customer Loans, Deposits and LDR 87.1% 87.3% 89.9% 86.0% 84.0% 182.0 188.3 189.0 168.8 173.8 164.3 169.9 146.9 149.5 152.9 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Net Customer Loans ($b) Customer Deposits ($b) Loans / Deposits Ratio (LDR) (%) 12
Slide 13: Robust Credit Quality; NPL Ratio Improved to 1.2%
Robust Credit Quality; NPL Ratio Improved to 1.2% NPL ($m) 2,113 2,496 2,362 2,239 2,152 NPL Ratio 1.4% 1.6% 1.5% 1.3% 1.2% 877 822 538 726 613 41 39 42 85 43 43 85 100 98 141 312 306 223 237 210 374 377 401 398 397 763 812 774 737 748 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Singapore Malaysia Thailand I
Slide 14: Strong Impairment Coverage
Strong Impairment Coverage Total Loan Impairment 2,887 2,919 2,924 3,000 3,000 ($m) 227.0% 225.6% 264.3% 184.6% 203.9% 136.6% 116.9% 123.8% 134.0% 139.4% 873 874 960 936 855 2,014 2,045 1,964 2,064 2,145 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Collective Impairment ($m) Individual impairment ($m) Cumulat
Slide 15: Capital Ratios Remained Strong
Capital Ratios Remained Strong Basel II Basel III 19.1% 18.3% 18.0% 17.0% 17.2% Total CAR 4.4% 4.0% 3.7% 3.1% 3.6% Tier 2 CAR 13.9% 14.3% 14.7% 14.3% Tier 1 / CET1 CAR * 13.6% Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 CET1 Capital ($b) NA NA NA 21 21 Tier 1 Capital ($b) 19 19 20 21 21 Total Capital ($b) 23
Slide 16: Interim Dividend Maintained
Interim Dividend Maintained 10 10 40 40 40 20 20 20 20 2010 2011 2012 1H13 Net Netdividend dividend per perordinary ordinaryshare share(¢) (¢) Interim Interim Final Final Special Special Interim dividend Payout amount ($m) 306 315 315 315 Payout ratio (%) 24 25 23 21 16
Slide 17: Singapore – Summarised Income Statement
Singapore – Summarised Income Statement 1H13 1H12 +/(-) 2Q13 1Q13 +/(-) $m $m % $m $m % Net interest income 1,034 1,075 (3.9) 532 502 6.0 Fee and commission income 569 468 21.7 269 300 (10.2) Other non-interest income 254 349 (27.3) 118 136 (12.9) Total income 1,856 1,892 (1.9) 919 937 (1.9) Less: T
Slide 18: Singapore – Key Financial Indicators
Singapore – Key Financial Indicators 1H13 1H12 +/(-) 2Q13 1Q13 +/(-) % % % pt % % % pt Net interest margin 1.30 1.59 (0.29) 1.31 1.29 0.02 Non-NII / Total income 44.3 43.2 1.1 42.1 46.5 (4.4) Expense / Total income 41.2 40.1 1.1 42.2 40.3 1.9 Customer loans (net) - $b 111.9 94.6 18.3% 111.9 108.2 3.
Slide 19: Malaysia – Summarised Income Statement
Malaysia – Summarised Income Statement 1H13 1H12 +/(-) 2Q13 1Q13 +/(-) RM'm RM'm % RM'm RM'm % Net interest income 783 735 6.5 399 384 3.9 Fee and commission income 250 242 3.3 131 119 10.1 Other non-interest income 134 118 13.6 76 58 31.0 Total income 1,167 1,095 6.6 606 561 8.0 Less: Total expense
Slide 20: Malaysia – Key Financial Indicators
Malaysia – Key Financial Indicators 1H13 1H12 +/(-) 2Q13 1Q13 +/(-) % % % pt % % % pt Net interest margin 2.11 2.22 (0.11) 2.14 2.08 0.06 Non-NII / Total income 32.9 32.9 - 34.2 31.6 2.6 Expense / Total income 34.3 32.1 2.2 34.3 34.2 0.1 Customer loans (net) - RM'b 60.2 54.7 10.1% 60.2 58.5 2.8% Cus
Slide 21: Thailand – Summarised Income Statement
Thailand – Summarised Income Statement 1H13 1H12 +/(-) 2Q13 1Q13 +/(-) THB'm THB'm % THB'm THB'm % Net interest income 5,530 4,724 17.1 2,803 2,727 2.8 Fee and commission income 1,881 1,412 33.2 988 893 10.6 Other non-interest income 72 218 (67.0) (45) 117 (>100.0) Total income 7,483 6,354 17.8 3,74
Slide 22: Thailand – Key Financial Indicators
Thailand – Key Financial Indicators 1H13 1H12 +/(-) 2Q13 1Q13 +/(-) % % % pt % % % pt Net interest margin 3.44 3.59 (0.15) 3.40 3.47 (0.07) Non-NII / Total income 26.1 25.7 0.4 25.2 27.0 (1.8) Expense / Total income 65.2 64.2 1.0 69.1 61.3 7.8 Customer loans (net) - THB'b 218.0 189.6 15.0% 218.0 211
Slide 23: Indonesia – Summarised Income Statement
Indonesia – Summarised Income Statement 1H13 1H12 +/(-) 2Q13 1Q13 +/(-) IDR'b IDR'b % IDR'b IDR'b % Net interest income 1,232 1,282 (3.9) 611 621 (1.6) Fee and commission income 350 312 12.2 190 160 18.8 Other non-interest income 158 167 (5.4) 57 101 (43.6) Total income 1,740 1,761 (1.2) 858 882 (2.
Slide 24: Indonesia – Key Financial Indicators
Indonesia – Key Financial Indicators 1H13 1H12 +/(-) 2Q13 1Q13 +/(-) % % % pt % % % pt Net interest margin 4.68 5.45 (0.77) 4.49 4.88 (0.39) Non-NII / Total income 29.2 27.2 2.0 28.8 29.6 (0.8) Expense / Total income 62.2 55.9 6.3 62.2 62.1 0.1 Customer loans (net) - IDR't 46.1 42.4 8.6% 46.1 44.2 4
Slide 25: Greater China – Summarised Income Statement
Greater China – Summarised Income Statement 1H13 1H12 +/(-) 2Q13 1Q13 +/(-) $m $m % $m $m % Net interest income 125 122 2.6 65 60 9.6 Fee and commission income 48 32 53.3 22 27 (20.0) Other non-interest income 91 50 83.2 27 65 (59.0) Total income 264 203 30.2 113 151 (25.0) Less: Total expenses 100
Slide 26: Greater China – Key Financial Indicators
Greater China – Key Financial Indicators 1H13 1H12 +/(-) 2Q13 1Q13 +/(-) % % % pt % % % pt Net interest margin 1.30 1.34 (0.04) 1.33 1.26 0.07 Non-NII / Total income 52.8 40.0 12.8 42.4 60.6 (18.2) Expense / Total income 37.6 42.5 (4.9) 44.2 32.7 11.5 Customer loans (net) - $b 9.9 8.9 10.5% 9.9 8.9