United Overseas Bank Limited · SGX:U11
United Overseas Bank — Merger or Acquisition (November 2021)
20 slides from United Overseas Bank's merger presentation, November 2021
Slide 1: Transformational deal advancing UOB Group's position as a leading regional bank
Transformational deal advancing UOB Group’s position as a leading regional bank Private and Confidential. Disclaimer: All information in this presentation is based upon certain assumptions and analysis of information available as at the date of the presentation and reflects conditions and UOB Group’
Slide 2: Agenda
1 Transaction Summary 2 Strategic Rationale Agenda 3 Financial Implications 4 Appendix 2
Slide 3: Transaction Summary
Transaction Summary Transformational deal that scales UOB Group’s Southeast Asian franchise and advances UOB Group’s position as a leading regional bank; acquired at 1.2x P/B 1 • UOB Group to continue the good stewardship and conduct of the acquired consumer business in the ASEAN-41 markets • Attrac
Slide 4: Strategic Rationale
- UOB Strategic Rationale
Slide 5: Transformational Deal that Advances UOB Group's Position as a Leading Regional Bank
Transformational Deal that Advances UOB Group’s Position as a Leading Regional Bank Acquisition doubles UOB Group’s ASEAN-41 scale and accelerates achievement of Group Retail’s ambition by 5 years Customers1 Deepen commitment to Southeast Asia 1 and ride on its long-term growth potential Post-Acquis
Slide 6: Strong Track Record of Growth and Commitment to Southeast Asia
Strong Track Record of Growth and Commitment to Southeast Asia • UOB Group’s management has a proven track record in steering the Group through various global events and crises • Stability of management team ensures consistent execution of strategies • Disciplined management style which underpins th
Slide 7: Citi's Assets are Complementary to UOB Group
Citi’s Assets are Complementary to UOB Group Citi’s assets deepen UOB Group’s Citi’s customer segments augment UOB Group’s Southeast Asia’s footprint Retail Customers1 by Segment Retail Customers1 by Geography (m) Total UOB+Citi 2.4 Affluent 90k 120k 30k 1.1 1.5 Emerging Affluent 1.2 0.6 100k 270k 1
Slide 8: Citi's Assets are Complementary to UOB Group
Citi’s Assets are Complementary to UOB Group Strategic fit that augments existing product streams with superior returns from high quality and resilient portfolio UOB Group Percentage of Credit Card Customers Pro-forma RORWA1 90+ Days Past Due2 >30bp 2.6 Funding Wealth Driving 1.9 1.6 1.6 1.4 1.0 Uns
Slide 9: Scaling Across the Region (Pre-Acquisition)
Scaling Across the Region (Pre-Acquisition) Strategy: Tap rising affluence in Southeast Asia, acquire customers digitally using TMRW and engage our customers with our omni-channel capabilities as they move up the wealth continuum ~2.9 million1 Omni-channel platform retail customers To deepen relatio
Slide 10: Scaling Across the Region (Post-Acquisition)
Scaling Across the Region (Post-Acquisition) Strategy: Tap rising affluence in Southeast Asia, acquire customers digitally using TMRW and engage our customers with our omni-channel capabilities as they move up the wealth continuum Doubled to ~5.3 million1 Omni-channel platform retail customers To de
Slide 11: Strengthen Regional Capabilities with Experienced Leadership and Diverse Talent Pool
Strengthen Regional Capabilities with Experienced Leadership and Diverse Talent Pool Experienced senior leadership team and diverse talent pool that will add value and support future franchise growth Strong and competent front office sales, product management, credit management, … and a wealth of ex
Slide 12: Financial Implications
UOB Financial Implications
Slide 13: Deepening Capabilities, Reach and Scale in Products and Markets We Understand Well
Deepening Capabilities, Reach and Scale in Products and Markets We Understand Well Balanced business mix with Measured diversification with diversified product income streams Singapore still anchoring majority of loans Pro-forma 1H21 Group PFS1 Pro-forma 1H21 UOB Group Income by Product Geographical
Slide 14: Pro-forma Financial Impact
Pro-forma Financial Impact Post-acquisition: Driving immediate ~S$1.0b in incremental annual income uplift as well as asset growth by scaling across the region Malaysia Thailand Indonesia Vietnam ASEAN-4 UOB Group 1.1x 1.2x 1.6x 1.4x 1.3x Income 2.0x UOB UOB+Citi UOB UOB+Citi UOB UOB+Citi UOB UOB+Ci
Slide 15: Impact on Group Capital and Returns
Impact on Group Capital and Returns Transaction valued at 1.2x net assets of $4.0b1, fully funded by UOB Group’s excess capital Group remains well-capitalised post-acquisition • Manageable CET1 impact of 70 basis points; resulting in pro-forma CET1 ratio of 12.8% (from Sep ’21 reported CET1 of 13.5%
Slide 16: Integration Timeline
Integration Timeline 2022 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Regional operating model for Thailand both Citi and UOB Group Joint UOB-Citi team at regional and country level Malaysia Planning for Phased migration seamless migration to de-risk and optimise resources of Citi customers and employees a
Slide 17: Transaction Terms
Transaction Terms Subject to regulatory approvals, UOB Group will acquire Citigroup Inc.’s (“Citi”) consumer banking businesses comprising its unsecured and secured lending portfolios, wealth management and retail deposit businesses (the “Consumer Business”) in Overview Indonesia, Malaysia, Thailand
Slide 18: Appendix
UOB Appendix
Slide 19: Southeast Asia's Immense Long-term Potential
Southeast Asia’s Immense Long-term Potential Population GDP1 Southeast Asia’s … that UOB is uniquely million persons USD trillion immense growth placed to capture prospects… • Most diverse regional • Third largest population franchise among 667 726 globally, after China and Singapore banks 581 6.3 3
Slide 20: Right By You
RK FH RIGHT BY YOU
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