United Overseas Bank Limited · SGX:U11
United Overseas Bank — FY2012 Earnings Presentation
26 slides from United Overseas Bank's earnings presentation, Feb 27, 2013
Slide 1: UOB Group Full Year 2012 Financial Highlights
UOB Group Full Year 2012 Financial Highlights Lee Wai Fai Group Chief Financial Officer 27 February 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
Slide 2: Record High NPAT of $2.8 billion in 2012, up 21% YoY
Record High NPAT of $2.8 billion in 2012, up 21% YoY 2012 2011 +/(-) $m $m % Net interest income 3,917 3,678 6.5 Fee and commission income 1,508 1,318 14.4 Other non-interest income 1,070 703 52.3 Total income 6,495 5,699 14.0 Less: Total expenses 2,747 2,450 12.1 Operating profit 3,748 3,248 15.4 L
Slide 3: 4Q12 NPAT at $696 million, up 25% YoY, 2% lower QoQ
4Q12 NPAT at $696 million, up 25% YoY, 2% lower QoQ 4Q12 3Q12 +/(-) 4Q11 +/(-) $m $m % $m % Net interest income 967 971 (0.5) 978 (1.2) Fee and commission income 388 372 4.1 327 18.7 Other non-interest income 238 321 (25.7) 173 37.5 Total income 1,592 1,664 (4.3) 1,478 7.7 Less: Total expenses 719 6
Slide 4: NII continued to trend up despite NIM compression
NII continued to trend up despite NIM compression Net Interest Income (NII) and Margin 3.02% 2.88% 2.31% 2.40% 2.29% 2.25% 2.22% 2.41% 2.29% 2.36% 2.09% 1.95% 1.98% 1.92% 1.84% 1.92% 1.87% 1.76% 1.21% 0.97% 1.13% 1.02% 1.04% 0.88% 0.91% 0.87% 0.72% 3,917 3,674 3,678 3,532 570 686 587 634 978 998 981
Slide 5: Fee Income Hit New Highs for 4Q12 and FY12; Non-NII Rose 28% to $2.6 billion
Fee Income Hit New Highs for 4Q12 and FY12; Non-NII Rose 28% to $2.6 billion in FY12 Non-Interest Income (Non-NII) and Non-NII Ratio 39.1% 39.7% 35.5% 41.6% 39.3% 38.7% 39.1% 32.0% 33.8% 35.9% 23.1% 23.2% 21.1% 18.1% 24.0% 24.3% 22.1% 22.2% 22.4% 20.1% 2,578 1,975 2,021 1,732 1,070 693 630 629 626 8
Slide 6: FY12 Cost-Income Ratio Improved to 42.3%, with Higher Revenue Growth
FY12 Cost-Income Ratio Improved to 42.3%, with Higher Revenue Growth Operating Expenses and Expense / Income Ratio 43.0% 42.3% 41.0% 45.1% 38.4% 42.3% 41.5% 41.3% 41.3% 38.9% 2,747 2,450 2,258 2,074 1,151 719 1,047 676 666 687 1,016 625 959 293 286 281 290 275 1,403 1,597 1,116 1,242 406 428 350 382
Slide 7: Total Credit Costs Remained Stable
Total Credit Costs Remained Stable Impairment Charges on Loans 76bp 51bp 35bp 30bp 30bp 30bp 30bp 30bp 30bp 59bp 30bp 30bp 18bp 23bp 26bp 21bp 22bp 12bp 604 198 454 95 190 81 79 82 163 2009 2010 2011 2012 4Q11 1Q12 2Q12 3Q12 4Q12 Individual Impairment Charges on Loans ($m) Individual Impairment Char
Slide 8: Performance by Business Segment
Performance by Business Segment 2012 2% 2012 2011 +/(-) 19% 30% Segment Operating Profit $m $m % Group Retail (GR) 1,136 1,018 11.6 53% Group Wholesale (GW) 1,994 1,697 17.5 Elim (4)% Global Markets & Investment Mgt (GMIM) 704 491 43.4 2011 Others 65 157 (58.6) 5% 15% Elimination (151) (115) (31.3)
Slide 9: Strong Performance in Singapore and the Region
Strong Performance in Singapore and the Region. Region’s Operating Profit Up 29% YoY, outpaced Singapore’s 12% growth 2012 At 8% 40% 6% constant 5% FX rate 5% Operating 2012 2011 +/(-) +/(-) 60% 16% Profit $m $m % % Singapore 2,243 2,008 11.7 11.7 Regional: 1,217 967 25.9 29.1 2011 Malaysia 608 506
Slide 10: FY12 Loans Grew 8%, contributed by Singapore and the Regional Countries
FY12 Loans Grew 8%, contributed by Singapore and the Regional Countries 2012 2012 2011 +/(-) 4Q12 3Q12 +/(-) 5% 6% 4% Gross Loans $b $b % $b $b % 5% 15% Singapore 101.1 92.3 9.6 101.1 98.3 2.8 65% Regional: 46.8 42.7 9.5 46.8 45.7 2.3 Malaysia 23.5 20.7 13.3 23.5 23.2 1.2 Thailand 8.5 7.8 8.9 8.5 8.
Slide 11: Deposits Up 7% YoY Supported by a Strong Deposits Franchise
Deposits Up 7% YoY Supported by a Strong Deposits Franchise 2012 2011 +/(-) 4Q12 3Q12 +/(-) 2012 5% 6% 3% $b $b % $b $b % 4% Singapore 123.4 115.7 6.6 123.4 117.9 4.6 14% 68% Regional: 50.3 44.9 11.8 50.3 47.6 5.6 Malaysia 26.2 21.6 21.5 26.2 25.2 4.0 Thailand 8.2 7.0 17.7 8.2 7.0 16.1 Indonesia 5.8
Slide 12: Stable Liquidity Position
Stable Liquidity Position Customer Loans, Deposits and LDR 83.3% 86.0% 87.1% 86.0% 84.0% 173.8 182.0 169.5 168.5 168.8 144.9 146.9 149.5 152.9 141.2 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Net Customer Loans ($b) Customer Deposits ($b) Loans / Deposits Ratio (LDR) (%) 12
Slide 13: Credit Quality Intact; NPL Ratio Steady at 1.5%
Credit Quality Intact; NPL Ratio Steady at 1.5% NPL ($m) 2,020 2,071 2,113 2,496 2,362 NPL Ratio 1.4% 1.4% 1.4% 1.6% 1.5% 877 822 550 538 537 41 39 32 85 85 42 31 83 100 83 306 315 312 223 309 374 377 401 346 370 714 721 763 812 774 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Singapore Malaysia Thailand Indo
Slide 14: Strong Impairment Coverage
Strong Impairment Coverage Total Loan Impairment 2,752 2,828 2,887 2,919 2,924 ($m) 238.5% 233.5% 227.0% 203.9% 184.6% 136.2% 136.6% 136.6% 116.9% 123.8% 770 835 873 874 960 1,982 1,993 2,014 2,045 1,964 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Collective Impairment ($m) Individual impairment ($m) Cumulat
Slide 15: Capital Ratios Remained Strong
Capital Ratios Remained Strong Capital Adequacy Ratios (CAR) 19.1% 18.3% 17.1% 17.0% 16.7% Total CAR 14.7% 13.9% 13.9% 14.3% 13.5% Tier 1 CAR 13.1% 12.3% 12.3% 12.6% Core Tier 1 CAR 11.9% Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 $b Core Tier 1 Capital 15.9 16.5 16.5 16.7 17.4 Tier 1 Capital 18.0 18.6 18.6
Slide 16: Special Dividend Recommended, in Addition to Final Dividend
Special Dividend Recommended, in Addition to Final Dividend 10 10 40 40 40 40 20 20 20 20 2009 2010 2011 2012 Net Netdividend dividend per perordinary ordinaryshare share(¢) (¢) Interim Interim Final Final Special Special Payout amount ($m) 903 1,077 944 1,102 Payout ratio (%) 48 44 41 39 16
Slide 17: Singapore – Summarised Income Statement
Singapore – Summarised Income Statement 2012 2011 +/(-) 4Q12 3Q12 +/(-) $m $m % $m $m % Net interest income 2,102 2,049 2.6 506 520 (2.7) Fee and commission income 934 792 17.9 238 228 4.2 Other non-interest income 754 498 51.4 166 240 (30.8) Total income 3,790 3,339 13.5 910 988 (7.9) Less: Total e
Slide 18: Singapore – Key Financial Indicators
Singapore – Key Financial Indicators 2012 2011 +/(-) 4Q12 3Q12 +/(-) % % % pt % % % pt Net interest margin 1.50 1.52 (0.02) 1.37 1.48 (0.11) Non-NII / Total income 44.5 38.6 5.9 44.4 47.4 (3.0) Expense / Total income 40.8 39.9 0.9 43.3 40.0 3.3 Customer loans (net) - $b 99.3 90.5 9.8% 99.3 96.5 3.0%
Slide 19: Malaysia – Summarised Income Statement
Malaysia – Summarised Income Statement 2012 2011 +/(-) 4Q12 3Q12 +/(-) RM'm RM'm % RM'm RM'm % Net interest income 1,515 1,355 11.8 392 388 1.0 Fee and commission income 517 417 24.0 161 114 41.2 Other non-interest income 235 173 35.8 57 60 (5.0) Total income 2,267 1,945 16.6 610 562 8.5 Less: Total
Slide 20: Malaysia – Key Financial Indicators
Malaysia – Key Financial Indicators 2012 2011 +/(-) 4Q12 3Q12 +/(-) % % % pt % % % pt Net interest margin 2.16 2.59 (0.43) 2.07 2.15 (0.08) Non-NII / Total income 33.2 30.3 2.9 35.7 31.0 4.7 Expense / Total income 33.5 36.5 (3.0) 36.2 33.3 2.9 Customer loans (net) - RM'b 57.7 49.6 16.1% 57.7 56.9 1.
Slide 21: Thailand – Summarised Income Statement
Thailand – Summarised Income Statement 2012 2011 +/(-) 4Q12 3Q12 +/(-) THB'm THB'm % THB'm THB'm % Net interest income 9,992 8,183 22.1 2,652 2,616 1.4 Fee and commission income 2,898 2,300 26.0 742 744 (0.3) Other non-interest income 318 44 >100.0 64 36 77.8 Total income 13,208 10,527 25.5 3,458 3,
Slide 22: Thailand – Key Financial Indicators
Thailand – Key Financial Indicators 2012 2011 +/(-) 4Q12 3Q12 +/(-) % % % pt % % % pt Net interest margin 3.48 3.28 0.20 3.36 3.42 (0.06) Non-NII / Total income 24.3 22.3 2.0 23.3 23.0 0.3 Expense / Total income 65.6 72.2 (6.6) 69.2 64.5 4.7 Customer loans (net) - THB'b 207.8 183.9 13.0% 207.8 200.5
Slide 23: Indonesia – Summarised Income Statement
Indonesia – Summarised Income Statement 2012 2011 +/(-) 4Q12 3Q12 +/(-) IDR'b IDR'b % IDR'b IDR'b % Net interest income 2,572 2,099 22.5 637 653 (2.5) Fee and commission income 613 629 (2.5) 138 163 (15.3) Other non-interest income 248 285 (13.0) (12) 93 (>100.0) Total income 3,433 3,013 13.9 763 90
Slide 24: Indonesia – Key Financial Indicators
Indonesia – Key Financial Indicators 2012 2011 +/(-) 4Q12 3Q12 +/(-) % % % pt % % % pt Net interest margin 5.29 5.20 0.09 5.00 5.29 (0.29) Non-NII / Total income 25.1 30.3 (5.2) 16.5 28.2 (11.7) Expense / Total income 57.1 57.7 (0.6) 67.1 51.2 15.9 Customer loans (net) - IDR't 44.4 40.3 10.3% 44.4 4
Slide 25: Greater China – Summarised Income Statement
Greater China – Summarised Income Statement 2012 2011 +/(-) 4Q12 3Q12 +/(-) $m $m % $m $m % Net interest income 233 176 32.6 56 55 2.3 Fee and commission income 67 67 (0.3) 15 21 (28.6) Other non-interest income 114 80 42.4 39 25 58.1 Total income 414 323 28.2 110 100 9.8 Less: Total expenses 182 16
Slide 26: Greater China – Key Financial Indicators
Greater China – Key Financial Indicators 2012 2011 +/(-) 4Q12 3Q12 +/(-) % % % pt % % % pt Net interest margin 1.27 1.20 0.07 1.21 1.20 0.01 Non-NII / Total income 43.7 45.5 (1.8) 48.9 45.2 3.7 Expense / Total income 44.0 50.9 (6.9) 45.9 45.0 0.9 Customer loans (net) - $b 9.1 8.4 8.9% 9.1 8.6 5.6% C