United Overseas Bank Limited · SGX:U11
United Overseas Bank — FY2013 Earnings Presentation
26 slides from United Overseas Bank's earnings presentation, Feb 14, 2014
Slide 1: UOB Group Full Year 2013 Financial Highlights
UOB Group Full Year 2013 Financial Highlights Lee Wai Fai Group Chief Financial Officer 14 February 2014 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
Slide 2: Full Year 2013 NPAT at New High of $3.0 billion, Up 7% YoY
Full Year 2013 NPAT at New High of $3.0 billion, Up 7% YoY 2013 2012 +/(-) $m $m % Net interest income 4,120 3,917 5.2 Fee and commission income 1,731 1,508 14.8 Other non-interest income 870 1,070 (18.7) Total income 6,720 6,495 3.5 Less: Total expenses 2,898 2,747 5.5 Operating profit 3,822 3,748
Slide 3: 4Q13 NPAT at $773 million, Up 6% QoQ and 11% Compared to 4Q12
4Q13 NPAT at $773 million, Up 6% QoQ and 11% Compared to 4Q12 4Q13 4Q12 +/(-) 3Q13 +/(-) $m $m % $m % Net interest income 1,095 967 13.3 1,046 4.7 Fee and commission income 435 388 12.2 407 6.9 Other non-interest income 212 238 (10.9) 211 0.6 Total income 1,742 1,592 9.4 1,663 4.7 Less: Total expens
Slide 4: FY2013 NII Crossed $4b Mark to $4.1b, Boosted by Strong Loans Growth
FY2013 NII Crossed $4b Mark to $4.1b, Boosted by Strong Loans Growth. 4Q13 NIM Improved 3bps to 1.74% Net Interest Income (NII) and Margin 2.88% 2.41% 2.22% 2.13% 2.06% 2.29% 2.10% 2.06% 2.09% 2.09% 1.92% 1.87% 1.72% 1.76% 1.70% 1.71% 1.71% 1.74% 0.88% 0.97% 0.91% 0.84% 0.80% 0.85% 0.95% 0.72% 0.75%
Slide 5: Strong Fee Income Driven by Double-Digit Growth in Wealth Management, Fund Management and Loan-Related Fees
Strong Fee Income Driven by Double-Digit Growth in Wealth Management, Fund Management and Loan-Related Fees Non-Interest Income (Non-NII) and Non-NII Ratio 42.4% 39.3% 38.2% 37.1% 37.1% 39.1% 39.7% 38.7% 35.5% 35.9% 25.8% 23.1% 23.2% 27.1% 26.6% 21.1% 24.3% 24.4% 25.0% 20.1% 2,578 2,600 1,975 2,021
Slide 6: Expenses Paced for Business Growth
Expenses Paced for Business Growth Operating Expenses and Expense / Income Ratio 45.1% 44.2% 43.0% 42.3% 43.1% 43.0% 43.8% 41.0% 41.6% 38.9% 2,898 2,747 2,450 2,258 762 1,186 719 696 726 715 1,151 1,047 1,016 290 303 288 315 280 1,597 1,712 1,242 1,403 428 415 423 427 447 2010 2011 2012 2013 4Q12 1Q
Slide 7: Total Credit Costs Remained Stable
Total Credit Costs Remained Stable Impairment Charges on Loans 51bp 35bp 30bp 30bp 30bp 30bp 30bp 30bp 30bp 30bp 30bp 18bp 12bp 8bp 8bp 10bp 11bp 2bp 454 198 190 163 136 41 51 32 11 2010 2011 2012 2013 4Q12 1Q13 2Q13 3Q13 4Q13 Individual Impairment Charges on Loans ($m) Individual Impairment Charges
Slide 8: Performance by Business Segment
Performance by Business Segment 2013 2013 2012 +/(-) 1% 10% Segment Operating Profit $m $m % 33% Group Retail (GR) 1,259 1,138 10.6 56% Group Wholesale (GW) 2,136 1,978 8.0 Global Markets & Investment Mgt (GMIM) 392 557 (29.6) 2012 Others 35 75 (53.3) 2% 15% 30% Total 3,822 3,748 2.0 53% GR GW GMIM
Slide 9: Regional Performance Delivered 10% Growth. Overseas contributions at 42%
Regional Performance Delivered 10% Growth. Overseas contributions at 42% 2013 At 8% 7% constant 4% FX rate 6% Operating 2013 2012 +/(-) +/(-) 58% Profit $m $m % % 17% Singapore 2,213 2,243 (1.3) (1.3) Regional: 1,310 1,217 7.6 10.3 2012 Malaysia 634 608 4.2 6.4 8% 6% Thailand 222 182 21.6 20.2 5% In
Slide 10: Steady Loans Growth
Steady Loans Growth At At 2013 constant constant 6% FX rate FX rate 7% Dec-13 Dec-12 +/(-) +/(-) Sep-13 +/(-) +/(-) 3% 5% Gross Loans $b $b % % $b % % 14% 65% Singapore 119.0 101.1 17.7 17.7 116.4 2.2 2.2 Regional: 52.7 46.8 12.7 16.8 49.8 5.9 7.0 Malaysia 25.2 23.5 7.4 11.4 24.3 3.9 3.7 2012 Thaila
Slide 11: Strong Deposits Franchise
Strong Deposits Franchise At At 2013 constant constant 6% FX rate FX rate 6% 3% Customer Dec-13 Dec-12 +/(-) +/(-) Sep-13 +/(-) +/(-) 5% Deposits $b $b % % $b % % 13% 67% Singapore 136.1 123.4 10.3 10.3 134.8 1.0 1.0 Regional: 54.4 50.3 8.2 11.9 50.4 7.8 8.9 Malaysia 26.9 26.2 2.5 6.3 25.8 4.0 3.9 T
Slide 12: Stable Liquidity Position
Stable Liquidity Position Customer Loans, Deposits and LDR 87.3% 89.9% 88.3% 88.5% 84.0% 188.3 189.0 196.4 202.0 182.0 169.9 173.5 178.9 152.9 164.3 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Net Customer Loans ($b) Customer Deposits ($b) Loans / Deposits Ratio (LDR) (%) 12
Slide 13: Credit Quality Intact; Low NPL Ratio at 1.1%
Credit Quality Intact; Low NPL Ratio at 1.1% NPL ($m) 2,362 2,239 2,152 2,107 2,074 NPL Ratio 1.5% 1.3% 1.2% 1.2% 1.1% 822 726 613 589 531 42 43 43 30 29 100 141 124 88 98 223 201 203 237 210 401 392 411 398 397 774 737 748 771 812 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Singapore Malaysia Thailand Indon
Slide 14: Strong Impairment Coverage
Strong Impairment Coverage Total Loan Impairment 2,924 3,000 3,000 3,050 3,121 ($m) 264.3% 270.6% 298.9% 203.9% 225.6% 123.8% 134.0% 139.4% 144.8% 150.5% 806 798 936 855 960 2,145 2,244 2,323 1,964 2,064 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Collective Impairment ($m) Individual impairment ($m) Cumulat
Slide 15: Capital Ratios Remained Strong
Capital Ratios Remained Strong Basel II Basel III 19.1% Total CAR 18.0% 17.2% 16.6% 16.3% 4.4% Tier 2 CAR 3.7% 3.6% 3.4% 3.4% Tier 1 / CET1 CAR * 14.7% 14.3% 13.6% 12.9% 13.2% Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 CET1 Capital ($b) NA 21 21 21 22 Tier 1 Capital ($b) 20 21 21 21 22 Total Capital ($b) 25
Slide 16: Final Dividend of 50 Cents and Special Dividend of 5 Cents Per Share
Final Dividend of 50 Cents and Special Dividend of 5 Cents Per Share 5 10 10 50 40 40 40 20 20 20 20 2010 2011 2012 2013 Net dividend per ordinary share (¢) Interim Final Special Payout amount ($m) 1,077 944 1,102 1,182 Payout ratio (%) 44 41 39 39 16
Slide 17: Singapore – Summarised Income Statement
Singapore – Summarised Income Statement 2013 2012 +/(-) 4Q13 3Q13 +/(-) $m $m % $m $m % Net interest income 2,176 2,102 3.5 586 556 5.4 Fee and commission income 1,053 934 12.7 244 240 1.7 Other non-interest income 546 754 (27.6) 142 151 (5.6) Total income 3,775 3,790 (0.4) 972 946 2.7 Less: Total e
Slide 18: Singapore – Key Financial Indicators
Singapore – Key Financial Indicators 2013 2012 +/(-) 4Q13 3Q13 +/(-) % % % pt % % % pt Net interest margin 1.32 1.50 (0.18) 1.34 1.33 0.01 Non-NII / Total income 42.4 44.5 (2.1) 39.7 41.2 (1.5) Expense / Total income 41.4 40.8 0.6 42.0 41.0 1.0 Customer loans (net) - $b 117.1 99.3 17.9% 117.1 114.6
Slide 19: Malaysia – Summarised Income Statement
Malaysia – Summarised Income Statement 2013 2012 +/(-) 4Q13 3Q13 +/(-) RM'm RM'm % RM'm RM'm % Net interest income 1,616 1,515 6.7 425 408 4.2 Fee and commission income 555 517 7.4 160 145 10.3 Other non-interest income 279 235 18.7 75 70 7.1 Total income 2,450 2,267 8.1 660 623 5.9 Less: Total expe
Slide 20: Malaysia – Key Financial Indicators
Malaysia – Key Financial Indicators 2013 2012 +/(-) 4Q13 3Q13 +/(-) % % % pt % % % pt Net interest margin 2.09 2.16 (0.07) 2.08 2.05 0.03 Non-NII / Total income 34.0 33.2 0.8 35.6 34.5 1.1 Expense / Total income 34.6 33.5 1.1 36.7 32.9 3.8 Customer loans (net) - RM'b 64.1 57.7 11.3% 64.1 61.8 3.7% C
Slide 21: Thailand – Summarised Income Statement
Thailand – Summarised Income Statement 2013 2012 +/(-) 4Q13 3Q13 +/(-) THB'm THB'm % THB'm THB'm % Net interest income 11,316 9,992 13.3 2,925 2,861 2.2 Fee and commission income 4,124 2,898 42.3 1,168 1,075 8.7 Other non-interest income 122 318 (61.6) 161 (111) >100.0 Total income 15,562 13,208 17.
Slide 22: Thailand – Key Financial Indicators
Thailand – Key Financial Indicators 2013 2012 +/(-) 4Q13 3Q13 +/(-) % % % pt % % % pt Net interest margin 3.42 3.48 (0.06) 3.46 3.34 0.12 Non-NII / Total income 27.3 24.3 3.0 31.2 25.2 6.0 Expense / Total income 64.9 65.6 (0.7) 62.6 66.7 (4.1) Customer loans (net) - THB'b 247.8 207.8 19.3% 247.8 229
Slide 23: Indonesia – Summarised Income Statement
Indonesia – Summarised Income Statement 2013 2012 +/(-) 4Q13 3Q13 +/(-) IDR'b IDR'b % IDR'b IDR'b % Net interest income 2,573 2,572 - 683 658 3.8 Fee and commission income 716 613 16.8 202 164 23.2 Other non-interest income 375 248 51.2 95 122 (22.1) Total income 3,664 3,433 6.7 980 944 3.8 Less: To
Slide 24: Indonesia – Key Financial Indicators
Indonesia – Key Financial Indicators 2013 2012 +/(-) 4Q13 3Q13 +/(-) % % % pt % % % pt Net interest margin 4.69 5.29 (0.60) 4.66 4.75 (0.09) Non-NII / Total income 29.8 25.1 4.7 30.3 30.3 - Expense / Total income 60.8 57.1 3.7 61.6 57.2 4.4 Customer loans (net) - IDR't 51.6 44.4 16.1% 51.6 48.8 5.7%
Slide 25: Greater China – Summarised Income Statement
Greater China – Summarised Income Statement 2013 2012 +/(-) 4Q13 3Q13 +/(-) $m $m % $m $m % Net interest income 296 233 27.0 90 80 12.3 Fee and commission income 101 67 51.0 28 24 15.4 Other non-interest income 105 114 (7.7) 7 7 (3.9) Total income 502 414 21.3 125 112 12.0 Less: Total expenses 218 1
Slide 26: Greater China – Key Financial Indicators
Greater China – Key Financial Indicators 2013 2012 +/(-) 4Q13 3Q13 +/(-) % % % pt % % % pt Net interest margin 1.39 1.27 0.12 1.46 1.45 0.01 Non-NII / Total income 41.0 43.7 (2.7) 27.8 28.1 (0.3) Expense / Total income 43.5 44.0 (0.5) 51.2 48.9 2.3 Customer loans (net) - $b 12.2 9.1 33.8% 12.2 10.5