United Overseas Bank Limited · SGX:U11
United Overseas Bank — UOB Group — H1 2025 Earnings Presentation
21 slides from United Overseas Bank's earnings presentation, Jun 30, 2025
Slide 1: UOB Group Financial Updates
UOB Group Financial Updates Leong Yung Chee Group Chief Financial Officer For the First Half / Second Quarter Ended 30 June 2025 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 pres
Slide 2: Key Highlights
Key Highlights Net profit after tax • Second quarter 2025 net profit at $1.3 billion, 10% lower QoQ and 6% lower YoY $1.3b - 10% QoQ - 6% YoY • Net interest income eased, as net interest margin declined nine basis points from last quarter to 1.91% due to lower asset yields amid falling benchmark rat
Slide 3: 1H25 net profit at $2.8 billion
1H25 net profit at $2.8 billion Growth in operating profit offset by pre-emptive credit provisioning 1H25 1H24 YoY 2Q25 1Q25 QoQ 2Q24 YoY $m $m +/(-)% $m $m +/(-)% $m +/(-)% Net interest income 4,745 4,763 (0) 2,336 2,409 (3) 2,401 (3) Net fee income 1,330 1,198 11 636 694 (8) 618 3 Other non-intere
Slide 4: Group Retail
Group Retail Selected income statement data Highlights 1H25 1H24 YoY • PBT rose as one-off expenses and credit cost pressures from operational $m $m % merger in Thailand have abated Income 2,592 2,695 (4) • Strategic priorities of CASA, cards and wealth delivered results, offsetting Lending, Deposit
Slide 5: Group Wholesale Banking
Group Wholesale Banking Selected income statement data Highlights 1H25 1H24 YoY $m $m % • PBT impacted by exogenous factors like lower benchmark rates and keen Income 3,254 3,415 (5) competition for quality assets, while allowance rose from a low base Transaction Banking 1,596 1,863 (14) • Amid tari
Slide 6: Global Markets: Continue to deliver strong customer flows
Global Markets Continue to deliver strong customer flows Total income ($m) 1,082 787 530 614 270 556 Treasury Non-Customer 526 311 352 374 284 247 97 123 Treasury Customer1 516 552 255 304 251 272 280 1H24 1H25 2Q24 3Q24 4Q24 1Q25 2Q25 Total Assets2 ($b) 141 143 141 155 147 142 143 1. Reflects incom
Slide 7: Net interest income moderated as asset growth cushioned effects of sharp decline in benchmark rates
Net interest income moderated as asset growth cushioned effects of sharp decline in benchmark rates 2.49 2.51 2.56 2.48 2.33 2.40 2.27 Loan Margin (%) Net Interest Margin (%) 2.04 2.05 2.05 1.96 2.00 2.00 1.91 Interbank & Securities Margin (%) 1.16 1.11 1.10 1.16 1.16 0.98 1.01 -0% 4,763 4,745 NII f
Slide 8: Net interest margin eased on asset repricing mitigated by improved funding and balance sheet management
Net interest margin eased on asset repricing mitigated by improved funding and balance sheet management Loan Margin (%) 2.40 2.40 2.27 Interbank & Securities 1.16 1.16 Margin (%) Net Interest Margin (%) 2.00 1.91 -0.23 0.01 0.13 1Q25 Asset Funding Volume/ Mix 2Q25 repricing cost SGD -0.07 | 3M SORA
Slide 9: 2Q25 fee income declined from last quarter's record high
2Q25 fee income declined from last quarter’s record high, Wealth fees affected by cautious approach amid macro uncertainties +11% 1,724 1,560 172 Others ($m) 183 565 Credit Card ($m) 527 -7% 896 805 812 90 829 784 401 90 89 82 91 Wealth ($m) 336 281 273 276 284 304 213 173 183 188 586 178 Loan / Tra
Slide 10: Total expenses declined on tighter cost discipline
Total expenses declined on tighter cost discipline 45.6 44.3 44.4 44.1 43.5 42.4 42.6 Cost-to-income Ratio (%) 3,105 3,095 Other expenses1 ($m) 776 758 - 2% 1,626 1,579 IT-related expenses ($m) 527 512 - 3% 1,534 1,559 1,535 377 379 401 361 397 262 253 259 267 259 Staff costs ($m) 1,801 1,825 + 1% 8
Slide 11: Stable NPL ratio at 1.6% and new NPAs within expectation
Stable NPL ratio at 1.6% and new NPAs within expectation 1.5 1.5 1.5 1.6 1.6 NPL ratio (%) Non-Performing Assets 5,210 5,361 5,386 4,952 5,055 619 609 736 Rest of the world 467 445 Greater China 1,047 1,001 1,101 1,387 1,330 ASEAN-4 2,315 2,522 2,469 2,440 2,441 Singapore 1,123 1,087 1,021 925 879 2
Slide 12: Specific allowance increased, mitigated by pre-emptive provisions
Specific allowance increased, mitigated by pre-emptive provisions 34 52 24 Total credit costs (bps) Specific credit costs (bps) 36 35 26 32 20 24 34 32 25 21 19 563 134 380 212 General allowance on loans ($m) 53 281 290 274 429 1 194 439 133 Specific allowance on loans ($m) 328 25 296 273 169 156 (1
Slide 13: Provision coverage maintained at prudent levels
Provision coverage maintained at prudent levels 33 32 32 Specific allowance/NPA (%) 30 30 General allowance on loans include 0.9 0.9 0.8 0.8 0.8 RLAR/Performing loans (%) 4,851 5,026 4,829 4,764 4,765 RLAR ($m) 379 379 379 379 379 General allowance ($m) 2,901 2,963 2,733 2,833 2,776 Specific allowan
Slide 14: Loans growth of 4% YoY and 1% QoQ, mainly from corporates and mortgages in Singapore
Loans growth of 4% YoY and 1% QoQ, mainly from corporates and mortgages in Singapore By Industry By Geography +4% +1% 5% 5% 328 334 338 341 343 Rest of the world 49 49 48 49 51 Greater China 53 49 52 51 48 24% 27% 69 73 74 74 74 ASEAN-4 $343b Jun-25 Singapore 158 163 164 167 170 Jun-24 Sep-24 Dec-24
Slide 15: Healthy liquidity and funding base with continued CASA growth
Healthy liquidity and funding base with continued CASA growth 149 All-currency LCR (%) 141 143 143 141 118 116 116 118 Net Stable Fund Ratio (NSFR) (%) 116 83.4 82.3 82.7 84.0 83.7 Loan/Deposit Ratio (LDR) (%) 470 468 467 465 450 61 70 64 66 60 Wholesale Funding ($b) 1 186 183 180 176 FD & others ($
Slide 16: Robust CET1 ratio at 15.3% following capital returns to shareholders
Robust CET1 ratio at 15.3% following capital returns to shareholders 15.5 15.5 15.5 15.3 CET1 ratio (%) 13.4 CET1 ratio (%) 15.1 15.2 15.4 15.4 – Fully Loaded 284 260 269 266 252 RWA ($b) 1 1 Jun-24 Sep-24 Dec-24 Mar-25 1 Jun-25 1 Leverage ratio (%) 7.1 6.8 6.9 7.3 7.1 1. Based on MAS Notice 637 iss
Slide 17: Delivering long-term and sustainable returns
Delivering long-term and sustainable returns Payout ratio Capital Distribution Package (%) 49 50 50 50 $3 billion Dividend per 50 cents ordinary share (¢) Special Dividend in 2025 ▪ $0.4b in May 2025 180 ▪ $0.4b in Aug 2025 170 135 92 Final 85 $2 billion 75 85 Share Buyback by 2027 ▪ $255m or 13% co
Slide 18: Appendix
▪ Exposure to Greater China Appendix ▪ Exposure to Commercial Real Estate - Office 18
Slide 19: Exposure to Greater China
Exposure to Greater China 78.6 75.3 73.7 Debt ($b) 9.0 69.9 9.0 8.0 7.8 63.0 8.1 Non Bank ($b) 52.6 ▪ ~$1b in loans to Chinese 49.3 52.2 51.1 developers (0.4% of group loans) 48.0 Bank ($b) 17.0 17.0 13.5 11.0 6.9 Jun-24 Sep-24 Dec-24 Mar-25 Jun-25 Mainland China Hong Kong SAR Bank exposure ($4.7b)
Slide 20: Exposure to Commercial Real Estate - Office
Exposure to Commercial Real Estate - Office Commercial Real Estate - Office exposure is 5.9% of loans By geography as % of loans • Almost half of office exposure 0.2% Others is in Singapore 0.6% 0.8% 0.8% United Kingdom 0.8% • Overseas exposure backed 0.8% United States by strong sponsors Jun-25 5.9
Slide 21: Thank You
Thank You & Right By You