United Overseas Bank Limited · SGX:U11

United Overseas Bank — Q3 2016 Earnings Presentation

20 slides from United Overseas Bank's earnings presentation, Oct 28, 2016

  1. Slide 1: UOB Group 3rd Quarter 2016 Financial Highlights

    UOB Group 3rd Quarter 2016 UOB Group 3rd Quarter 2016 Financial Highlights Financial Highlights Lee Wai Fai Lee Wai Fai Group Chief Financial Officer Group Chief Financial Officer 28 October 2016 28 October 2016 Disclaimer : This material that follows is a presentation of general background informat

  2. Slide 2: 9M16 NPAT of $2.36 billion, down 3% YoY

    9M16 NPAT of $2.36 billion, down 3% YoY 9M16 9M15 +/(-) $m $m % Net interest income 3,715 3,649 1.8 p Fee and commission income 1,400 1,403 (0.3) q Other non-interest income 918 915 0.3 p Total income 6,033 5,967 1.1 p Less: Total expenses 2,739 2,633 4.0 p Operating profit 3,293 3,334 (1.2) q Less:

  3. Slide 3: 3Q16 NPAT of $791 million, down 1% QoQ

    3Q16 NPAT of $791 million, down 1% QoQ 3Q16 3Q15 +/(-) 2Q16 +/(-) $m $m % $m % Net interest income 1,230 1,235 (0.4) q 1,211 1.6 p Fee and commission income 492 485 1.6 p 475 3.8 p Other non-interest income 318 365 (13.0) q 338 (6.1) q Total income 2,040 2,085 (2.1) q 2,024 0.8 p Less: Total expense

  4. Slide 4: Higher NII supported by Loan Growth

    Higher NII supported by Loan Growth Net Interest Income (NII) and Margin 2.12% 2.26% 2.24% 2.06% 2.27% 2.34% 2.36% 2.23% 2.13% 1.72% 1.71% 1.77% 1.72% 1.77% 1.79% 1.78% 1.68% 1.69% 0.76% 0.82% 0.50% 0.33% 0.46% 0.40% 0.30% 0.43% 0.25% 4,926 4,558 391 4,120 620 3,715 1,277 1,275 537 1,235 1,211 1,230

  5. Slide 5: Fee Income up 4% QoQ from Loan-related and Fund Management fees

    Fee Income up 4% QoQ from Loan-related and Fund Management fees Non-Interest Income (Non-NII) and Non-NII Ratio 38.7% 38.9% 38.8% 38.4% 40.8% 38.6% 40.2% 39.7% 35.3% 25.8% 23.5% 23.4% 23.2% 23.3% 23.1% 22.0% 23.4% 24.1% 3,122 2,900 284 2,600 334 325 2,318 954 817 210 850 544 803 813 810 55 60 695 83

  6. Slide 6: Staff costs tightly managed as investments in IT continue

    Staff costs tightly managed as investments in IT continue Operating Expenses and Expense / Income Ratio 44.7% 45.4% 43.1% 46.3% 45.4% 45.8% 45.0% 43.4% 43.1% 43.4% 42.2% 44.3% 42.3% 3,597 ^ 3,146^ 2,898 1,533 2,739 964 ^ 1,321 904 ^ 894 927 918 1,186 1,203 376 442 405 409 389 2,064 1,712 1,825 1,536

  7. Slide 7: Higher specific allowances in 3Q largely from Oil & Gas Sector

    Higher specific allowances in 3Q largely from Oil & Gas Sector; total credit cost is kept at 32 bps Allowances on Loans 34bp 53bp 30bp 32bp 32bp 32bp 32bp 32bp 32bp 32bp 32bp 19bp 12bp 25bp 8bp 542 22bp 23bp 11bp 392 288 238 133 115 121 136 56 2013 2014 2015 9M16 3Q15 4Q15 1Q16 2Q16 3Q16 Specific Al

  8. Slide 8: Performance by Business Segment

    Performance by Business Segment 9M16 9M16 9M15 +/(-) -9% 6% Segment Operating Profit $m $m % 41% Group Retail (GR) 1,359 1,158 17.4 Group Wholesale Banking (GWB) 2,035 1,942 4.8 62% Global Markets (GM) 193 191 1.0 Others (294) 44 (>100.0) 9M15 6% Total 3,293 3,334 (1.2) 1% 35% 58% GR GWB GM Others 8

  9. Slide 9: Regional Operating Profit increased 2% YoY in Constant Currency Terms

    Regional Operating Profit increased 2% YoY in Constant Currency Terms 9M16 8% At 7% constant 4% FX rate 7% Operating 9M16 9M15 +/(-) +/(-) Profit $m $m % % 60% 14% Singapore 1,969 2,018 (2.4) (2.4) 9M15 Regional: 1,041 1,055 (1.4) 2.1 Malaysia 457 463 (1.3) 5.2 8% 8% Thailand 228 215 6.1 9.8 3% Indo

  10. Slide 10: Loans increased to $217b, up 7% YoY and 2% QoQ

    Loans increased to $217b, up 7% YoY and 2% QoQ Sep-16 Sep-16 Sep-15 +/(-) Jun-16 +/(-) 10% Gross Loans $b $b % $b % 12% Singapore 120.4 114.3 5.4 119.9 0.4 5% 55% Regional: 75.8 70.7 7.2 72.8 4.1 6% Malaysia 25.7 23.7 8.5 25.4 1.0 12% Thailand 12.4 11.2 10.9 11.6 6.2 Sep-15 Indonesia 11.6 10.8 7.7 1

  11. Slide 11: Deposits increased by 3% YoY and 1% QoQ with proactive liquidity management

    Deposits increased by 3% YoY and 1% QoQ with proactive liquidity management Sep-16 5% Customer Sep-16 Sep-15 +/(-) Jun-16 +/(-) 5% Deposits $b $b % $b % 3% 5% Singapore 178.6 169.6 5.3 177.1 0.9 11% Regional: 60.3 54.9 10.0 58.3 3.5 71% Malaysia 26.7 24.9 7.2 26.8 (0.1) Thailand 12.6 11.3 11.2 12.4

  12. Slide 12: Stable Liquidity Position

    Stable Liquidity Position Customer Loans and Deposits; LDR and LCR 81.6% 84.7% 80.7% 84.0% 85.0% 244.6 254.8 248.2 251.0 240.5 203.6 205.6 208.4 213.5 199.6 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Net Customer Loans ($b) Customer Deposits ($b) Loan/Deposit Ratio (LDR) (%) SGD LDR (%) 88.4 91.7 88.1 91.9

  13. Slide 13: NPL Ratio at 1.6% with NPLs mainly from Oil and Gas Sector

    NPL Ratio at 1.6% with NPLs mainly from Oil and Gas Sector NPL ($m) 2,551 2,882 2,841 3,056 3,496 NPL Ratio 1.3% 1.4% 1.4% 1.4% 1.6% 255 303 206 344 176 401 565 351 218 158 564 293 166 569 564 264 372 466 249 250 451 238 378 386 401 1,614 1,395 1,046 1,116 1,067 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Si

  14. Slide 14: Movements in Non-Performing Assets

    Movements in Non-Performing Assets 3Q16 2Q16 3Q15 $m $m $m NPA at start of period 3,164 3,016 2,705 New NPA 780 802 422 Upgrades, recoveries and translations (201) (548) (278) Write-offs (111) (106) (112) NPA at end of period 3,632 3,164 2,737 14

  15. Slide 15: Loan Allowances Coverage continues to be Adequate

    Loan Allowances Coverage continues to be Adequate Total Loan 3,640 3,760 3,783 3,837 3,929 Allowances ($m) 345.4% 315.7% 325.3% 332.5% 266.0% 142.7% 130.5% 133.2% 125.6% 112.4% 773 751 770 975 712 2,928 2,987 3,032 3,067 2,954 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 General Allowances ($m) Total Allowanc

  16. Slide 16: Exposure to China

    Exposure to China Total = SGD21.1b Bank exposure in China or 6.4% of total assets  99% with <1 year tenor  Around 75% accounted for by top 5 domestic banks and policy banks Bank,  Trade exposures mostly with bank counterparties, SGD11.9b representing slightly more than half of bank exposure Debt,

  17. Slide 17: Exposure to Commodities

    Exposure to Commodities Oil and gas As of Traders/ Other commodity Upstream Total 30 September 16 downstream segments industries industries Total exposure1 SGD4.8b SGD8.4b SGD9.0b SGD22.2b Outstanding loans SGD4.0b SGD5.2b SGD6.9b SGD16.1b 4% of total loans 7.4% of total loans  Total exposure, incl

  18. Slide 18: Exposure to Europe

    Exposure to Europe As of As a % of total Non-bank Bank Debt securities Total 30 Sep 2016 assets Europe SGD3.6b SGD4.0b SGD1.7b SGD9.3b 2.8% of which UK SGD2.7b SGD0.8b SGD0.2b SGD3.7b 1.1% Minimal direct impact from Brexit  Bulk of UK non-bank exposure is 95% secured and 78% denominated in GBP  Co

  19. Slide 19: Stronger Capital Position from Scrip Dividend and Access to Bank Capital Markets

    Stronger Capital Position from Scrip Dividend and Access to Bank Capital Markets Capital Adequacy Ratios (CAR) Total 16.4% 16.6% 15.6% 16.0% 15.9% Tier 2 2.8% 2.7% 3.1% 2.6% 3.2% Tier 1 13.6% 13.0% 12.8% 13.2% 13.5% Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 CET1 Capital ($b) 25 26 26 26 27 Tier 1 Capital (

  20. Slide 20: Thank You

    Thank You iit UOB RIGHT BY YOU

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