United Overseas Bank Limited · SGX:U11
United Overseas Bank — Morgan Stanley Asia Pacific Summit 2007
17 slides from United Overseas Bank's conference presentation, Nov 13, 2007
Slide 1: Morgan Stanley Asia Pacific Summit 2007
Morgan Stanley Asia Pacific Summit 2007 Lee Wai Fai Chief Financial Officer 13 November 2007 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 form and do
Slide 2: Agenda
Agenda 11 Business Business Overview Overview 22 Financial Financial Overview Overview 2
Slide 3: UOB Overview
UOB Overview Founding Key Statistics Founded in August 1935 by a Total Assets: S$172.2 billion group of Chinese businessmen Shareholder’s Equity: S$17.2 billion and Datuk Wee Kheng Chiang, Gross Loans: S$87.1 billion grandfather of the present UOB Group CEO, Mr Wee Ee Cheong. Customer Deposits: S$10
Slide 4: Execution Track Record
Execution Track Record Profit (S$ million) 2,000 Acquired 9M07: S$1,603m Buana in 2005 2006*: S$1,882m 1,800 Acquired BOA 2005: S$1,709m 1,600 in 2004 1,400 2004:S$1,452m Acquired OUB in 2001 1,200 1,000 Acquired ICB 2000:S$913m in 1987 800 Acquired FEB in 1984 1995:S$633m Acquired 600 UOBR & Acquir
Slide 5: Established Regional Presence
Established Regional Presence Total Assets Breakdown CHINA 11 branches / offices Singapore : 64% ASEAN : 18% HONG KONG & Asia-Pacific : 11% TAIWAN Rest of the world : 7% THAILAND 10 branches / offices 156 branches / offices Profit Before Tax Breakdown VIETNAM MALAYSIA 1 branch / office 43 branches /
Slide 6: Strategic Focus
Strategic Focus Information Technology Treasury Risk Consumers SMEs Management & Compliance Investment Operational Banking Excellence Human Resources To To be be recognized recognized as as aa leader leader in in consumer consumer and and SME SME banking banking services services in in the the regio
Slide 7: The UOB Difference
The UOB Difference Well-diversified Proven Execution Regional Portfolio Track Record Focus on Strong Long-Term Management Returns Team Keen Understanding of Markets & Customers 7
Slide 8: Strong Regional Economies
Strong Regional Economies Real GDP Growth Private Consumption Growth (%) Singapore Malaysia Thailand Indonesia (%) Singapore Malaysia Thailand Indonesia 10 10 5 5 0 0 -5 -5 -10 -10 -15 -15 1997 1998 2005 2006 2007E 2008E 1997 1998 2005 2006 2007E 2008E Foreign Exchange Reserves Net Foreign Direct In
Slide 9: Strategic Directions
Strategic Directions Strengthen Domestic Market Focused Regional Expansion Leadership Establish Strategic Partnerships Invest In The Future Our Mission: To be a Premier Bank in the Asia Pacific Region 9
Slide 10: Agenda
Agenda 11 Business Business Overview Overview 22 Financial Financial Overview Overview 10
Slide 11: Increasing Profitability
Increasing Profitability Operating Profit Net Profit (S$m) (S$m) 3,500 3000 3,101 2,570 3,000 2500 2,500 2,379 2,034 AG R 6% 2,488 2000 C 2,337 21 % 17% R 19 % 2,000 2,064 2,032 2,134 CAG 1,882 1,960 1500 1,709 1,603 1,766 1,452 1,500 1,345 1000 1,202 1,000 1,006 500 500 0 0 FY02 FY03 FY04 FY05 FY06
Slide 12: Diversified Income & Controlled Expenses
Diversified Income & Controlled Expenses Operating Income Operating Expenses (S$m) (%) (S$m) (%) 2,500 45 6,000 37.6 37.8 40 41.1 41.2 40.7 35.8 34.5 33.9 37.6 37.9 40 33.2 35.4 34.7 5,000 2,000 29.9 35 R 9% 4,224 30 13 % 1,736 CAG 20 % R 18 % 30 4,000 3,762 3,597 CAG 244 1,463 1,500 1,424 3,034 3,1
Slide 13: Growing Customer Margins & Loans
Growing Customer Margins & Loans Net Interest Margin Net Customer Loans (%) (S$m) 4.0 100,000 16 % 3.12 3.13 3.18 3.25 3.24 3.26 R 7% 85,161 3.01 CAG 76,875 80,000 67,142 73,673 3.0 64,300 59,297 2.22 2.25 58,884 2.10 1.99 1.99 2.00 2.05 60,000 2.0 40,000 1.0 20,000 0.0 0 FY02 FY03 FY04 FY05 FY06 9M
Slide 14: Stable & Liquid Non-Loan Asset Portfolio
Stable & Liquid Non-Loan Asset Portfolio Interbank / Securities Margin Average Interbank Balances & Securities (%) (S$m) 1.0 80,000 0.4% 0.78 66,086 0.8 0.71 65,705 65,807 0.68 0.70 0.66 1 7% 0.58 0.59 60,000 GR 0.6 CA 54,037 0.4 41,690 40,000 35,569 33,174 0.2 0.0 20,000 FY02 FY03 FY04 FY05 FY06 9M
Slide 15: Strong Asset Quality
Strong Asset Quality NPL Ratio Impairment Coverage (%) (%) 10 300 9.0 8.1 8.0 249.0 8 250 200 172.6 172.9 5.6 6 159.4 4.6 138.3 141.4 138.6 150 4.0 4 97.0 100 79.2 72.5 2.3 61.7 64.6 67.9 69.0 2 50 0 0 Dec- Dec- Dec- Dec- Dec- Sep- Sep- Dec- Dec- Dec- Dec- Dec- Sep- Sep- 02 03 04 05 06 06 07 02 03 0
Slide 16: Capital Management
Capital Management Recent MAS changes give flexibility Seek Capital Review mix of capital structure Efficiency Option of share buyback and/or special dividend for any excess capital Keep buffer above regulatory CAR to maintain high credit Strong Capital ratings for Strategic Reserve capital as we se
Slide 17: In Summary
In Summary Strategy remains intact. Core consumer businesses gathering pace Further entrenched market leadership in Singapore while strengthening regional platform. Balanced global portfolio diversification Manage rising costs and talent development while investing in operating infrastructure, hubbi
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