United Overseas Bank Limited · SGX:U11

United Overseas Bank — 1H 2015 Earnings Presentation

26 slides from United Overseas Bank's earnings presentation, Jul 31, 2015

  1. Slide 1: UOB Group First Half 2015 Financial Highlights

    UOB Group First Half 2015 Financial Highlights Lee Wai Fai Group Chief Financial Officer 31 July 2015 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 fo

  2. Slide 2: 1H15 NPAT of $1.56 billion, down 2% YoY

    1H15 NPAT of $1.56 billion, down 2% YoY 1H15 1H14 +/(-) $m $m % Net interest income 2,414 2,234 8.1  Fee and commission income 919 824 11.5  Other non-interest income 550 578 (4.9)  Total income 3,882 3,636 6.8  Less: Total expenses 1,729 1,542 12.1  Operating profit 2,153 2,094 2.8  Less: Spe

  3. Slide 3: 2Q15 NPAT of $762 million, down 6% YoY and 5% QoQ

    2Q15 NPAT of $762 million, down 6% YoY and 5% QoQ 2Q15 2Q14 +/(-) 1Q15 +/(-) $m $m % $m % Net interest income 1,213 1,124 7.9  1,201 1.0  Fee and commission income 465 410 13.4  453 2.6  Other non-interest income 248 350 (29.0)  301 (17.5)  Total income 1,927 1,884 2.2  1,956 (1.5)  Less: To

  4. Slide 4: NII Continued its Upward Trend Rising 8% YoY and 1% QoQ

    NII Continued its Upward Trend Rising 8% YoY and 1% QoQ Net Interest Income (NII) and Margin 2.29% 2.12% 2.23% 2.19% 2.26% 2.06% 2.05% 2.06% 2.08% 1.87% 1.72% 1.71% 1.76% 1.71% 1.71% 1.69% 1.76% 1.77% 0.91% 0.76% 0.82% 0.58% 0.84% 0.81% 0.71% 0.65% 0.50% 4,558 4,120 1,168 1,201 1,213 3,917 620 1,124

  5. Slide 5: Fee Income up 12% YoY and 3% QoQ offset by weaker Trading and Investment Income

    Fee Income up 12% YoY and 3% QoQ offset by weaker Trading and Investment Income Non-Interest Income (Non-NII) and Non-NII Ratio 39.7% 38.9% 40.3% 41.4% 38.7% 37.8% 36.8% 38.6% 37.0% 25.8% 23.2% 23.5% 23.7% 24.1% 24.3% 23.2% 24.2% 21.8% 2,900 2,578 2,600 334 816 325 760 755 397 83 682 714 817 100 77

  6. Slide 6: Higher Expenses to Support Growing Franchise

    Higher Expenses to Support Growing Franchise Operating Expenses and Expense / Income Ratio 44.5% 43.5% 43.6% 45.5% 43.1% 41.7% 40.6% 42.3% 42.2% 3,146 2,747 2,898 852 877 787 800 805 1,321 1,151 1,186 1,729 356 359 331 339 351 715 1,597 1,712 1,825 456 461 454 496 517 1,014 2012 2013 2014 1H15 2Q14

  7. Slide 7: Maintain Total Loan Charge Off Rate at 32bps

    Maintain Total Loan Charge Off Rate at 32bps Allowances on Loans 32bp 32bp 32bp 32bp 32bp 30bp 30bp 32bp 32bp 31bp 19bp 15bp 14bp 30bp 12bp 12bp 22bp 8bp 160 454 93 75 73 238 61 221 136 2012 2013 2014 1H15 2Q14 3Q14 4Q14 1Q15 2Q15 Specific Allowances on Loans ($m) Specific Allowances on Loans/Averag

  8. Slide 8: Performance by Business Segment

    Performance by Business Segment 1H15 Others -1% 1H15 1H14 +/(-) 7% Segment Operating Profit $m $m % Group Retail (GR) 751 672 11.8 35% 59% Group Wholesale Banking (GWB) 1,263 1,115 13.3 Global Markets & Investment Mgt (GMIM) 152 319 (52.4) 1H14 Others (13) (12) (8.3) 15% Total 2,153 2,094 2.8 32% 53

  9. Slide 9: Overseas Operating Profit Contribution Rose 8% YoY (FX Translation Excluded)

    Overseas Operating Profit Contribution Rose 8% YoY (FX Translation Excluded) 1H15 At 8% constant 9% FX rate 2% Operating 1H15 1H14 +/(-) +/(-) 6% 61% Profit $m $m % % 14% Singapore 1,300 1,303 (0.3) (0.3) 1H14 Regional: 677 668 1.3 0.9 Malaysia 307 308 (0.2) 4.3 6% Thailand 133 111 19.5 12.7 9% 3% I

  10. Slide 10: Loans Increased to $202b, up 5% YoY and 1% QoQ in Constant Currency Terms

    Loans Increased to $202b, up 5% YoY and 1% QoQ in Constant Currency Terms Jun-15 Jun-15 Jun-14 +/(-) Mar-15 +/(-) 8% Gross Loans $b $b % $b % 12% 5% 57% Singapore 115.0 112.0 2.7 114.5 0.5 5% Regional: 71.1 65.1 9.1 72.5 (2.0) 13% Malaysia 25.3 25.7 (1.5) 25.9 (2.3) Thailand 11.0 10.1 9.5 11.4 (3.5)

  11. Slide 11: Healthy Deposit Growth of 12% YoY and 1% QoQ

    Healthy Deposit Growth of 12% YoY and 1% QoQ Jun-15 Customer Jun-15 Jun-14 +/(-) Mar-15 +/(-) 8% Deposits $b $b % $b % 3% 5% 5% Singapore 163.5 143.9 13.6 159.1 2.8 11% 68% Regional: 57.5 57.4 0.2 61.6 (6.6) Malaysia 27.2 28.0 (2.7) 28.0 (3.0) Thailand 11.0 9.4 16.6 11.9 (7.9) Jun-14 Indonesia 6.6 6

  12. Slide 12: Stable Liquidity Position

    Stable Liquidity Position Customer Loans and Deposits; LDR and LCR 87.8% 85.8% 83.8% 83.4% 82.3% 224.4 233.8 239.4 241.5 216.1 199.7 189.7 192.6 195.9 198.8 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Net Customer Loans ($b) Customer Deposits ($b) Loan/Deposit Ratio (LDR) (%) SGD LDR (%) 98.2 94.1 93.0 94.5

  13. Slide 13: Stable NPL Ratio at 1.2%

    Stable NPL Ratio at 1.2% NPL ($m) 2,309 2,289 2,358 2,442 2,504 NPL Ratio 1.2% 1.2% 1.2% 1.2% 1.2% 377 400 419 432 149 738 127 124 118 313 335 298 275 120 292 289 244 259 267 388 423 256 386 400 419 864 922 931 805 532 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Singapore Malaysia Thailand Indonesia Greater

  14. Slide 14: Strong Allowances Coverage

    Strong Allowances Coverage Total Loan Allowances 3,445 3,360 3,440 3,589 3,609 ($m) 350.3% 362.5% 340.5% 305.1% 311.4% 149.2% 146.8% 145.9% 147.0% 144.1% 657 699 747 834 659 2,701 2,783 2,890 2,862 2,611 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 General Allowances ($m) Specific Allowances ($m) Total Allowa

  15. Slide 15: Capital Ratios Remained Strong

    Capital Ratios Remained Strong Capital Adequacy Ratios (CAR) 17.8% Total CAR 17.0% 16.9% 17.1% 16.8% 3.9% 3.0% 3.0% 2.8% 2.8% Tier 2 CAR 13.9% 14.0% 13.9% 14.3% 14.0% Tier 1 / CET1 CAR Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 CET1 Capital ($b) 23 24 25 26 25 Tier 1 Capital ($b) 23 24 25 26 25 Total Capita

  16. Slide 16: Interim Dividend

    Interim Dividend 5 5 10 50 50 40 35 20 20 20 2012 2013 2014 1H15 Net dividend per ordinary share (¢) Interim Final Special Interim Dividend Payout amount ($m) 315 315 320 561 Payout ratio (%) 23 21 20 36 16

  17. Slide 17: Singapore – Summarised Income Statement

    Singapore – Summarised Income Statement 1H15 1H14 +/(-) 2Q15 1Q15 +/(-) $m $m % $m $m % Net interest income 1,322 1,217 8.7 678 644 5.2 Fee and commission income 543 490 10.9 275 267 2.9 Other non-interest income 357 428 (16.5) 149 208 (28.1) Total income 2,222 2,134 4.1 1,102 1,120 (1.5) Less: Tota

  18. Slide 18: Singapore – Key Financial Indicators

    Singapore – Key Financial Indicators 1H15 1H14 +/(-) 2Q15 1Q15 +/(-) % % % pt % % % pt Net interest margin 1.40 1.33 0.07 1.43 1.38 0.05 Non-NII/Total income 40.5 43.0 (2.5) 38.5 42.4 (3.9) Expense/Total income 41.5 38.9 2.6 42.1 40.9 1.2 Customer loans (net) - $b 128.9 124.0 4.0% 128.9 128.1 0.6% C

  19. Slide 19: Malaysia – Summarised Income Statement

    Malaysia – Summarised Income Statement 1H15 1H14 +/(-) 2Q15 1Q15 +/(-) RM'm RM'm % RM'm RM'm % Net interest income 978 888 10.1 475 503 (5.6) Fee and commission income 285 286 (0.3) 145 140 3.6 Other non-interest income 110 111 (0.9) 54 56 (3.6) Total income 1,373 1,285 6.8 674 699 (3.6) Less: Total

  20. Slide 20: Malaysia – Key Financial Indicators

    Malaysia – Key Financial Indicators 1H15 1H14 +/(-) 2Q15 1Q15 +/(-) % % % pt % % % pt Net interest margin 2.28 2.13 0.15 2.21 2.35 (0.14) Non-NII/Total income 28.8 30.9 (2.1) 29.5 28.0 1.5 Expense/Total income 39.5 38.1 1.4 42.9 36.3 6.6 Customer loans (net) - RM'b 71.3 66.9 6.6% 71.3 70.8 0.7% Cust

  21. Slide 21: Thailand – Summarised Income Statement

    Thailand – Summarised Income Statement 1H15 1H14 +/(-) 2Q15 1Q15 +/(-) THB'm THB'm % THB'm THB'm % Net interest income 6,433 5,967 7.8 3,205 3,228 (0.7) Fee and commission income 2,836 2,338 21.3 1,512 1,324 14.2 Other non-interest income 109 (9) >100.0 50 59 (15.3) Total income 9,378 8,296 13.0 4,7

  22. Slide 22: Thailand – Key Financial Indicators

    Thailand – Key Financial Indicators 1H15 1H14 +/(-) 2Q15 1Q15 +/(-) % % % pt % % % pt Net interest margin 3.43 3.33 0.10 3.39 3.48 (0.09) Non-NII/Total income 31.4 28.1 3.3 32.8 30.0 2.8 Expense/Total income 65.4 65.3 0.1 67.2 63.6 3.6 Customer loans (net) - THB'b 266.5 252.1 5.7% 266.5 260.4 2.3% C

  23. Slide 23: Indonesia – Summarised Income Statement

    Indonesia – Summarised Income Statement 1H15 1H14 +/(-) 2Q15 1Q15 +/(-) IDR'b IDR'b % IDR'b IDR'b % Net interest income 1,307 1,380 (5.3) 628 679 (7.5) Fee and commission income 355 347 2.3 194 161 20.5 Other non-interest income 176 135 30.4 100 76 31.6 Total income 1,838 1,862 (1.3) 922 916 0.7 Les

  24. Slide 24: Indonesia – Key Financial Indicators

    Indonesia – Key Financial Indicators 1H15 1H14 +/(-) 2Q15 1Q15 +/(-) % % % pt % % % pt Net interest margin 3.83 4.52 (0.69) 3.58 4.10 (0.52) Non-NII/Total income 28.9 25.9 3.0 31.9 25.9 6.0 Expense/Total income 74.5 67.8 6.7 74.3 74.7 (0.4) Customer loans (net) - IDR't 54.0 53.4 1.2% 54.0 55.0 (1.8%

  25. Slide 25: Greater China – Summarised Income Statement

    Greater China – Summarised Income Statement 1H15 1H14 +/(-) 2Q15 1Q15 +/(-) $m $m % $m $m % Net interest income 193 176 10.0 97 97 (0.1) Fee and commission income 56 54 2.6 29 27 8.8 Other non-interest income 92 74 23.6 44 48 (8.3) Total income 341 304 12.0 170 171 (1.0) Less: Total expenses 153 120

  26. Slide 26: Greater China – Key Financial Indicators

    Greater China – Key Financial Indicators 1H15 1H14 +/(-) 2Q15 1Q15 +/(-) % % % pt % % % pt Net interest margin 1.25 1.24 0.01 1.26 1.24 0.02 Non-NII/Total income 43.3 42.3 1.0 43.0 43.6 (0.6) Expense/Total income 44.8 39.5 5.3 46.3 43.3 3.0 Customer loans (net) - $b 17.7 14.3 24.0% 17.7 17.7 0.1% Cu

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