United Overseas Bank Limited · SGX:U11

United Overseas Bank — FY2021 Earnings Presentation

24 slides from United Overseas Bank's earnings presentation, February 2022

  1. Slide 1: UOB Group Financial Updates

    UOB Group Financial Updates Lee Wai Fai Group Chief Financial Officer For the Financial Year / Fourth Quarter Ended 31 December 2021 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

  2. Slide 2: Financial Highlights

    Financial Highlights FY21 4Q21 Business momentum maintained in 4Q21 with NPAT at $1b. Operating profit Resilient balance sheet with stable credit outlook $5.5b $1.3b + 10% YoY - 3% QoQ • NII grew 5% led by loan growth and improvement in margin Net profit $4.1b $1.0b • Higher loan-related and credit

  3. Slide 3: Performance by Segment

    Performance by Segment 2021 2020 YoY 4Q21 3Q21 QoQ Operating Profit $m $m +/(-) % $m $m +/(-) %  Retail supported by record AUM and wealth management income Group Retail 2,027 2,064 (2) 434 523 (17) coupled with improved credit card activities, offsetting thinner Group Wholesale Banking 3,350 3,099

  4. Slide 4: Wholesale customers: growing regional franchise

    +10%1 Strengthening Cross border income; Connectivity Formed 30%2 of GWB income Wholesale Across our ASEAN footprint and global network 2x1 Suppliers and distributors within customers Financial Supply Chain Management (FSCM) solution  Growing regional Sector +28%1 franchise, capturing Specialisatio

  5. Slide 5: Consumers: tapping on rising affluence

    Building Scale & Deepening Engagement Scale UOB TMRW across ~800k1 #12 Consumers ASEAN, reduce cost to serve Customers digitally in App Store and Play Store and deepen engagement to acquired across the ranking among key banking drive customer lifetime value region by UOB TMRW apps in Singapore  Tap

  6. Slide 6: Performance by Geography

    2021 2020 YoY 4Q21 3Q21 QoQ Performance by Operating Profit $m $m +/(-)% $m $m +/(-)% Geography Singapore 2,839 2,592 10 724 686 6 Rest of Southeast Asia 1,327 1,302 2 298 351 (15)  FY21 performance Malaysia 689 675 2 148 185 (20) improved across most Thailand 407 392 4 106 99 7 markets Indonesia 2

  7. Slide 7: Financial Highlights

    Financial Highlights 2021 2020 YoY 4Q21 3Q21 QoQ 4Q20 YoY 2021 $m $m +/(-)% $m $m +/(-)% $m +/(-)% Net interest income 6,388 6,035 6 1,677 1,604 5 1,512 11  NPAT rose 40% YoY on Net fee income 2,412 1,997 21 589 589 (0) 522 13 lower credit costs and Others 990 1,144 (13) 168 259 (35) 214 (22) stron

  8. Slide 8: Net Interest Income and Margin

    1.91 1.89 1.87 1.90 1.90 1.87 1.89 Net Interest Income 1.57 1.56 1.57 1.57 1.56 1.55 1.56 and Margin 0.71 0.72 0.78 0.75 0.71 0.70 0.72 6,388 6,035  Higher NII led by continued 835 loan growth momentum 778 • YoY: +$353m (+6%) • QoQ:+$73m (+5%) 1,604 1,677 1,512 1,529 1,578 204 218 208 207 203 5,257

  9. Slide 9: Fee Income

    25 26 22 23 25 24 24 Fee Income 2,412 395  Record fees in FY21 1,997 185 boosted by stellar 367 638 performance in wealth and 595 589 589 134 103 522 96 loan-related activities 823 40 97 99 104 41 52 53 710 49 239 201 199 184  Fees stable in 4Q21 as 188 higher loan-related and 1,008 credit card fe

  10. Slide 10: Trading & Investment Income

    72 55 117 Trading & Investment 73 72 67 57 Income 880 730  Record high customer- 400 246 related income with year 202 on year growth of 10% 182 192 106 152 64 51 110 41  While customer-related 480 528 income was sustained 140 132 129 128 111 QoQ, other trading and investment income was (18) affect

  11. Slide 11: Expenses and Cost / Income Ratio

    45.6 44.1 46.7 Expenses and 43.8 43.7 43.7 45.0 Cost / Income Ratio 4,313 4,184  FY21 CIR improved to 12% 12% 44.1% on the back of 15% 14% strong income growth and 1,049 1,089 1,057 1,072 1,095 disciplined spend 14% 13% 13% 12% 11% 11% 13% 14% 14% 15% 16% 15%  Higher CIR in 4Q21 due to 14% 12% 13%

  12. Slide 12: Non-Performing Assets

    2020 2021 ($m) 4Q 1Q 2Q 3Q 4Q Non-Performing NPAs at start of period 4,301 4,608 4,544 4,547 4,772 Assets Non-individuals  Higher NPA formation New NPAs _ 622 145 360 251 670 in 4Q21 from several Less: secured corporate Upgrades and recoveries 175 250 158 73 172 accounts though no Write-offs 179 26

  13. Slide 13: Total Allowance on Loans

    55 57 20 Total Allowance on 29 22 20 20 Loans 24 18 34 1,579 19 20 10 12  Lower credit costs in FY21 as FY20 included 900 pre-emptive allowance for 391 non-impaired loans 150 598 64 207 144 153 94 679 241 136 6  4Q21 credit cost was 534 138 155 170 71 lower at 12bps due to (2) (76) write-back in g

  14. Slide 14: Allowance Coverage

    37 37 35 34 31 1.0 1.0 1.0 1.0 1.0 Allowance Coverage 4,944 5,075 5,007 5,052 4,876 379 379 379 379 379  Strong reserve buffer with coverage for performing 2,873 3,003 3,046 3,040 2,941 loans maintained at 1% 1,692 1,693 1,588 1,627 1,556  NPA coverage remained adequate at 96% or 239% Dec Mar Jun

  15. Slide 15: Gross Loans

    Dec-21 Sep-21 Dec-20 QoQ YoY Gross Loans $b $b $b +/(-)% +/(-)% Singapore 158 158 143 (1) 10  Steady growth of 2% QoQ Rest of Southeast Asia 63 62 63 2 1 mainly from term loans in Malaysia 30 29 30 1 0 Western World Thailand 21 20 21 7 1 Indonesia 10 11 10 (5) (3) Vietnam 2 2 2 (12) 8  YoY growth

  16. Slide 16: Total Funding

    Dec-21 Sep-21 Dec-20 QoQ YoY Total Funding $b $b $b +/(-)% +/(-)% Singapore 240 241 221 (0) 8 Rest of Southeast Asia 67 64 67 3 0 Malaysia 32 32 31 (1) 1  Continue to focus on Thailand 22 20 23 10 (3) stable funding Indonesia 9 9 9 2 10 Vietnam 3 3 3 7 (14) Others 0 0 0 (6) (4)  CASA ratio rose to

  17. Slide 17: Liquidity Ratios

    139 139 138 131 133 Liquidity Ratios 125 121 123 125 116  Strong liquidity with 85.4 87.0 86.9 87.0 85.1 LCR at 133% and NSFR at 116% Dec Mar Jun Sep Dec 2020 2021 USD LDR (%) 58.2 62.5 62.6 60.4 61.6 All-currency LCR (%) Loan/Deposit Ratio (LDR) (%) (1) Net Stable Fund Ratio (NSFR) (%) Note: (1) M

  18. Slide 18: Capital

    14.7 14.3 14.2 13.5 13.5 Capital  CET1 ratio healthy at 236 241 253 259 225 13.5%  Higher RWA alongside loan growth Dec Mar Jun Sep Dec 2020 2021 Leverage ratio (%) 7.4 7.5 7.4 7.1 7.2 RWA ($b) CET1 ratio (%)(1) Note: (1) MAS required Banks to cap dividend payment from July 2020 to July 2021 18

  19. Slide 19: Dividends

    130 120 120 20 Dividends 20 60 55 78 50  Committed to 39 Net dividend consistent and Per ordinary share (¢) sustainable returns to 60 50 55 shareholders Interim Special 39 Final  Final dividend of 60 2018 2019 2020 2021 cents per share 2018 2019 2020 2021 Payout amount ($m) 2,000 2,171 1,304 2,009

  20. Slide 20: Appendix

     Loan portfolio  Exposure to Greater China Appendix  Exposure to Oil & Gas sector 20

  21. Slide 21: Diversified Loan Portfolio

    Professionals and Housing loans private individuals 23% Others 9% 5% Transport, storage General commerce and 12% Industry communication 4% Diversified Loan Portfolio FIs, investment and holding companies Building & construction 13% 27% Manufacturing 7% Large corporates Others and institutions 13% 55

  22. Slide 22: Exposure to Greater China

    Exposure to Greater China 74.8 76.1 76.1 71.8 68.3 7.6 10.2 10.8 6.5 7.3 Debt ($b) Non Bank ($b) 44.2 47.2 48.2 49.5 48.8 Bank ($b) 17.6 17.3 19.0 16.4 16.5 Dec Mar Jun Sep Dec 2020 2021 As at 31 Dec 2021: Mainland China exposure ($27.7b or 6% of total assets) Hong Kong SAR exposure ($39.5b or 9% of

  23. Slide 23: Exposure to Oil and Gas (O&G) Sector

    Exposure to Oil and Gas (O&G) Sector Total Outstanding O&G Loans ($b) 11.8 As of 31 December 2021, outstanding O&G loans represented 2% of total loans 7.2 as compared with 5% at 30 June 2018 3.7 2.3 Approximately 70% of O&G exposure is to downstream players and traders, 4.8 which are mainly national

  24. Slide 24: Thank You

    itt UOB Thank You RIGHT BY YOU

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