United Overseas Bank Limited · SGX:U11
United Overseas Bank — FY2005 Earnings Presentation
12 slides from United Overseas Bank's earnings presentation, Feb 23, 2006
Slide 1: UOB Group Full Year / Fourth Quarter 2005 Results Briefing
UOB Group Full Year / Fourth Quarter 2005 Results Briefing RESULTS OVERVIEW Wee Ee Cheong Deputy Chairman & President 23 February 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 i
Slide 2: Panel Members
Panel Members Mr Wee Ee Cheong Deputy Chairman & President Mr Terence Ong SEVP, Global Treasury & Asset Management Mr Francis Lee SEVP, Personal Financial Services & International Mr Chong Kie Cheong SEVP, Investment & Private Banking Ms Susan Hwee EVP, Information Technology Mr Lee Wai
Slide 3: Agenda
Agenda 11 Highlights Highlights of of 2005 2005 Financial Financial Performance Performance 22 Strengthening Strengthening Regional Regional Franchise Franchise 33 Review Review of of Key Key Markets Markets 44 In In Summary Summary 3
Slide 4: Strong Operating Performance
Strong Operating Performance 2005 / 2002 2003 2004 2005 2004 Operating Profit * $1,960m $2,064m $2,032m $2,337m ↑ 15.0% Net Profit After Tax $1,006m $1,202m $1,452m $1,709m ↑ 17.7% Earnings Per Share $0.64 $0.77 $0.93 $1.11 ↑ 20.1% Cash ROE 9.5% 10.9% 12.4% 12.9% ↑ 0.5% pt Non-Interest Income / Tota
Slide 5: Strengthening Regional Franchise
Strengthening Regional Franchise Established 3 key Southeast Asia pillars • Successfully completed Thailand integration • Took controlling stake in Bank Buana with 61% Promote transfer of best of breed systems, processes, expertise, products across region. Tapping established network to serve cu
Slide 6: Maintain Market Leadership in Singapore
Maintain Market Leadership in Singapore Highest brand value among all Singapore financial institutions Remain as #1 credit card issuer and acquirer in Singapore Market leader in private property segment. Financed about one- third of new loans in 2005 based on caveats lodged. Leading SME play
Slide 7: Growing Our Franchise in Malaysia
Growing Our Franchise in Malaysia Strong growth in operating profits of 19%. Net profits flat due to higher impairment charges. Liberalisation moves increase opportunities in consumer banking and wealth management, eg. successful structured deposits campaigns. Enhanced consumer sales channels
Slide 8: Full Steam Ahead in Thailand
Full Steam Ahead in Thailand 2005 net profit grew 34% to THB1,238m on back of 12% growth in operating profits*. Key contributors include SME and Treasury businesses. Completion of merger in November. Re-branded as UOB (Thai). Put in place operating infrastructure for enhanced risk control and
Slide 9: Laying Groundwork For Expansion in Indonesia
Laying Groundwork For Expansion in Indonesia Indonesia business grew 29% in both operating and net profits* Acquired 61% in Bank Buana. UOBI continued organic growth with opening of tenth office amidst acquisition. Made good progress in building a consumer platform, eg. home loans, credit card
Slide 10: Beyond ASEAN
Beyond ASEAN 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 opportunities th
Slide 11: Improved Capital Efficiency
Improved Capital Efficiency Rebalanced capital mix with issuance of Hybrid Tier 1 capital Executed $600m share buyback program which will improve ROE Completed divestment of 34.7% in UOL. Exploring options for OUE and Hotel Negara. Maintain high dividend payout. With final dividend of $0.40
Slide 12: In Summary
In Summary We are pleased with our progress to date Strategy remains intact • Continue to build market leadership in Singapore • Strengthen regional franchise while explore expansion opportunities in other markets By 2010, UOB will be an established regional bank. 12