United Overseas Bank Limited · SGX:U11
United Overseas Bank — FY2003 Earnings Presentation
11 slides from United Overseas Bank's earnings presentation, Feb 20, 2004
Slide 1: UOB - Premier Regional Bank Analysts' Briefing Full Year 2003 Results
UOB - Premier Regional Bank Analysts’ Briefing Full Year 2003 Results Address by Mr Wee Ee Cheong Deputy Chairman & President 20 February 2004 Disclaimer : This material that follows is a presentation of general background information about the Bank’s activities current at the date of the presentati
Slide 2: Panel Members
Panel Members Mr Wee Ee Cheong Deputy Chairman & President Mr Samuel Poon SEVP, Institutional & Individual Financial Services Mr Terence Ong SEVP, Global Treasury / Asset Management Mr Francis Lee SEVP, International Mr Kuek Tong Au EVP, Corporate Services Ms Susan Hwee EVP, Information
Slide 3: Agenda
Agenda Steady Steady Operating Operating Performance Performance Robust Robust Growth Growth in in Non-Interest Non-Interest Income Income Non-Performing Non-Performing Loans Loans Continue Continue to to Improve Improve Cost Cost Discipline Discipline Maintained Maintained Ongoing Ongoing Capital C
Slide 4: Steady Operating Performance
Steady Operating Performance NPAT increased by 19.5% to Net Net Profit Profit After After Tax Tax $1,202m ($m) Operating profit grew 5.3% 1,400 1,202 from $1,960m to $2,064m 1,200 1,006 1,000 Achieved better balance of interest & non-interest 800 income 600 400 NIM improved from 2.22% to 200
Slide 5: Steady Operating Performance
Steady Operating Performance 2002 2003 2006 2010 Cash ROE (%) 9.5 10.9 15.0 20.0 Overseas profit 22.0 24.4 40.0 contribution (%) Non-interest 29.9 34.5 50.0 income contribution (%)
Slide 6: Robust Growth in Non-Interest Income
Robust Growth in Non-Interest Income Achieved 20.2% growth, Non-Interest Income Non-Interest Income progressing towards long ($m) term target 1,200 1,089 1,000 Improved contribution from 906 investment-related and loan- 800 related fees & commissions, 600 and capital market activities 400 200
Slide 7: Non-Performing Loans Continue to Improve
Non-Performing Loans Continue to Improve NPLs have trended down from $5.7bn in 2002 to $5.2bn in 2003 NPLs ratio improved from 9.0% to 8.1% Loan loss coverage up from 61.7% to 64.6% NPLs and provisions expected to improve with economic recovery and firming of property prices
Slide 8: Cost Discipline Maintained
Cost Discipline Maintained Operating expenses contained at $1.1bn Expense to income ratio improved from 35.4% in 2002 to 34.7% in 2003 In 2003, UOB continued to invest in strategic infrastructure including IT systems, CRM, branch renovations & branding Exploring ways to improve operational e
Slide 9: Ongoing Capital Management
Ongoing Capital Management Current capital position provides strategic flexibility with intent to build assets Continue with high dividend policy • Rewarding shareholders with final dividend of 40%, making a total dividend of 60% for 2003 Continue to work on non-core divestment despite deadlin
Slide 10: Focused Business Strategy
Focused Business Strategy Customer-centric approach; build long term relationship Grow Consumer & SME businesses in target segments domestically & across region Strengthen fee-based activities to increase non-interest income Regionalisation remains key focus, growth on track • Malaysia: Key
Slide 11: Moving Forward
Moving Forward Long term player with intimate understanding of the business & region. Well positioned to seize opportunities for growth. Committed to domestic leadership while aggressively expanding into region Actively seek to grow assets & increase non-interest income Continue with investm