United Overseas Bank Limited · SGX:U11
United Overseas Bank — Q1 2017 Earnings Presentation
27 slides from United Overseas Bank's earnings presentation, Apr 28, 2017
Slide 1: UOB Group 1st Quarter 2017 Financial Highlights
UOB Group 1st Quarter 2017 Financial Highlights Lee Wai Fai Group Chief Financial Officer 28 April 2017 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 f
Slide 2: 1Q17 Highlights
1Q17 Highlights 1Q17 NPAT of $807m ↑9% vs 4Q16 and ↑5% vs 1Q16 1Q17 vs 4Q16 • Total income rose 5%, led by higher net interest income and trading income • Operating expenses were flat • Specific allowance for loans decreased Strong balance sheet • Gross customer loans and deposits increased 2% QoQ •
Slide 3: 1Q17 NPAT of $807 million, up 5% YoY and 9% QoQ
1Q17 NPAT of $807 million, up 5% YoY and 9% QoQ 1Q17 1Q16 +/(-) 4Q16 +/(-) $m $m % $m % Net interest income 1,303 1,275 2.3 1,276 2.2 Fee and commission income 508 433 17.5 531 (4.2) Other non-interest income 311 262 18.8 222 40.0 Total income 2,123 1,969 7.8 2,028 4.6 Less: Total ex
Slide 4: NII rose 2% YoY supported by broad-based loan growth
NII rose 2% YoY supported by broad-based loan growth Net Interest Income (NII) and Margin 2.26% 2.20% 2.14% 2.06% 2.36% 2.23% 2.13% 2.09% 2.14% 1.71% 1.77% 1.71% 1.73% 1.78% 1.68% 1.69% 1.69% 1.73% 0.82% 0.50% 0.60% 0.38% 0.43% 0.55% 0.60% 0.30% 0.25% 4,926 4,991 4,558 391 303 620 1,275 1,211 1,230
Slide 5: Fee income and trading income 18% and 59% higher YoY
Fee income and trading income 18% and 59% higher YoY. Higher trading income this quarter offset by lower fee income Non-Interest Income (Non-NII) and Non-NII Ratio 38.9% 38.8% 38.1% 38.6% 40.2% 39.7% 38.6% 35.3% 37.1% 23.5% 23.4% 23.9% 24.0% 24.1% 26.2% 24.0% 22.0% 23.4% 3,122 3,071 2,900 284 263 33
Slide 6: Disciplined cost management resulting in stable expense/income ratio of 45.1%
Disciplined cost management resulting in stable expense/income ratio of 45.1% Operating Expenses and Expense / Income Ratio 44.7% 45.9% 45.1% 43.1% 47.2% 45.4% 45.8% 45.0% 45.1% 42.2% 43.4% 3,696 3,597 ^ 3,146 ^ 957 957 894 927 918 1,533 1,646 1,321 430 389 405 409 443 2,064 2,050 957 1,825 521 510
Slide 7: Lower specific allowance on loans in 1Q17
Lower specific allowance on loans in 1Q17 as allowance from exposures in the oil and gas and shipping industries has dropped Allowance on Loans 49bp 45bp 32bp 32bp 32bp 76bp 32bp 53bp 49bp 36bp from 19bp 969 existing 12bp 32bp 32bp 32bp 32bp 32bp NPLs 428 25bp 23bp 288 277 392 277 133 238 121 2014 2
Slide 8: Movements in non-performing assets
Movements in non-performing assets 1Q16 2Q16 3Q16 4Q16 1Q17 $m $m $m $m $m NPA at start of period 3,066 3,016 3,164 3,632 3,480 New NPA 344 802 780 387 424 Upgrades, recoveries and translations (235) (548) (201) (320) (293) Write-offs (159) (106) (111) (219) (68) NPA at end of period 3,016 3,164 3,6
Slide 9: NPL ratio remained stable 1.5%
NPL ratio remained stable 1.5% NPL ($m) 2,841 3,056 3,496 3,328 3,399 NPL Ratio 1.4% 1.4% 1.6% 1.5% 1.5% 255 245 257 303 206 307 304 176 401 565 638 623 158 564 293 564 264 360 370 466 250 451 487 487 401 1,614 1,395 1,291 1,358 1,067 Mar‐16 Jun‐16 Sep‐16 Dec‐16 Mar‐17 Singapore Malaysia Thailand In
Slide 10: New NPLs mainly from general commerce and oil and gas industries
New NPLs mainly from general commerce and oil and gas industries 3,496 3,399 3,328 408 3,056 440 484 2,841 183 203 601 563 637 618 542 304 286 276 284 294 643 513 610 451 383 298 316 321 264 288 179 216 274 209 210 917 1,063 965 996 881 Mar‐16 Jun‐16 Sep‐16 Dec‐16 Mar‐17 Transport, storage and commu
Slide 11: Exposure to commodities
Exposure to commodities Oil and gas Other commodity Mar 17 Traders/ Total Upstream downstream segments industries² industries Total exposure1 SGD5.2b SGD12.5b SGD10.5b SGD28.2b Outstanding loans SGD4.6b SGD7.3b SGD7.5b SGD19.4b 5% of total loans 8.5% of total loans Total exposure, including off-ba
Slide 12: Loan allowance coverage remains adequate
Loan allowance coverage remains adequate 325.3% 332.5% 266.0% 262.4% 244.2% 133.2% 125.6% 112.4% 118.0% 118.1% 1.5% 1.5% 1.4% 1.2% 1.1% 3,929 3,928 4,013 3,783 3,837 2,604 2,709 2,954 3,032 3,067 1,219 1,409 975 751 770 Mar‐16 Jun‐16 Sep‐16 Dec‐16 Mar‐17 Specific Allowance ($m) Total Allowance/Total
Slide 13: Stable liquidity position
Stable liquidity position Customer Loans and Deposits; LDR and LCR 80.7% 84.0% 85.0% 86.8% 86.7% 254.8 248.2 251.0 255.3 259.7 221.7 225.1 205.6 208.4 213.5 Mar‐16 Jun‐16 Sep‐16 Dec‐16 Mar‐17 Net Customer Loans ($b) Customer Deposits ($b) Loan/Deposit Ratio (LDR) (%) SGD LDR (%) 88.1 91.9 89.7 89.7
Slide 14: Loans up 9% YoY and 2% QoQ to $229b
Loans up 9% YoY and 2% QoQ to $229b Mar-17 Mar-17 Mar-16 +/(-) Dec-16 +/(-) 18% Gross Loans $b $b % $b % 36% 8% 43% Singapore 125.1 117.8 6.2 125.5 (0.4) 57% Regional: 80.6 72.4 11.4 78.1 3.2 Malaysia 25.6 25.5 0.3 25.8 (0.7) 31% 4% 3% Thailand 13.7 11.4 20.2 13.2 3.4 Mar-16 Indonesia 11.4 10.9 4.7
Slide 15: Funding increased by 4% YoY and 1% QoQ
Funding increased by 4% YoY and 1% QoQ with proactive liquidity management Mar-17 Mar-17 Mar-16 +/(-) Dec-16 +/(-) 14% $b $b % $b % 43% Singapore 182.0 177.4 2.6 178.7 1.9 Regional: 63.4 61.7 2.7 63.1 0.5 43% Malaysia 26.6 27.0 (1.3) 27.2 (2.2) Thailand 13.7 12.2 12.6 13.4 2.5 Indonesia 7.8 6.7 17.5
Slide 16: Performance by business segment
Performance by business segment 1Q17 1Q17 1Q16 +/(-) ‐7% 6% Segment Operating Profit $m $m % 42% Group Retail (GR) 493 424 16.3 Group Wholesale Banking (GWB) 690 685 0.7 59% Global Markets (GM) 64 73 (12.3) Others (81) (107) 24.6 1Q16 ‐10% Total 1,166 1,075 8.5 7% 39% 64% GR GWB GM Others 16
Slide 17: Regional operating profit increased 14% YoY in constant currency terms
Regional operating profit increased 14% YoY in constant currency terms 1Q17 10% At constant 9% FX rate 3% Operating 1Q17 1Q16 +/(-) +/(-) 6% Profit $m $m % % 58% 14% Singapore 672 649 3.6 3.6 1Q16 Regional: 377 339 11.4 13.5 Malaysia 159 161 (1.1) 6.4 8% 7% Thailand 68 70 (3.4) (6.4) 4% Indonesia 40
Slide 18: Exposure to China
Exposure to China Mar 2017 Bank exposure in China 98% with <1 year tenor SGD25.0b Around 77% accounted for by top 5 domestic banks and or 7.3% of total assets policy banks Trade exposures mostly with bank counterparties, representing slightly more than half of bank exposure Bank, SGD15.4b Non-
Slide 19: Exposure to Europe
Exposure to Europe As a % of total Mar 2017 Non-bank Bank Debt securities Total assets Europe SGD3.5b SGD3.5b SGD1.0b SGD8.0b 2.3% of which UK SGD2.4b SGD0.8b SGD0.2b SGD3.4b 1.0% Minimal direct impact from Brexit Bulk of UK non-bank exposure is secured and denominated in GBP Consumer mortgage b
Slide 20: Capital position augmented by various capital management initiatives
Capital position augmented by various capital management initiatives Capital Adequacy Ratios (CAR) Total 17.3% 16.6% 16.2% 16.0% 15.9% Tier 2 3.5% 2.7% 3.1% 3.1% 3.2% Tier 1 13.2% 13.5% 13.1% 13.8% 12.8% Fully Loaded CET 1 1 12.1% 12.2% 12.4% 12.1% 12.8% Mar‐16 Jun‐16 Sep‐16 Dec‐16 Mar‐17 CET1 Capit
Slide 21: Appendix: Performance of Major Territories
Appendix : Performance of Major Territories - Singapore - Malaysia - Thailand - Indonesia - Greater China
Slide 22: Singapore – Key Financials
Singapore – Key Financials 1Q17 1Q16 +/(-) 4Q16 +/(-) $m $m % $m % Net interest income 704 713 (1.3) 673 4.6 Fee & commission income 316 256 23.5 317 (0.4) Other non-interest income 184 173 6.5 128 43.4 Total income 1,203 1,141 5.4 1,118 7.6 Less: Expenses 531 492 7.9 519 2.3 Operating profit 672 64
Slide 23: Malaysia – Key Financials
Malaysia – Key Financials 1Q17 1Q16 +/(-) 4Q16 +/(-) RM'm RM'm % RM'm % Net interest income 522 510 2.4 502 4.0 Fee & commission income 178 136 30.9 185 (3.8) Other non-interest income 80 88 (9.1) 67 19.4 Total income 780 734 6.3 754 3.4 Less: Expenses 279 263 6.1 303 (7.9) Operating profit 501 471
Slide 24: Thailand – Key Financials
Thailand – Key Financials 1Q17 1Q16 +/(-) 4Q16 +/(-) THB'm THB'm % THB'm % Net interest income 3,699 3,479 6.3 3,707 (0.2) Fee & commission income 1,390 1,348 3.1 1,611 (13.7) Other non-interest income 126 92 37.0 171 (26.3) Total income 5,215 4,919 6.0 5,489 (5.0) Less: Expenses 3,531 3,120 13.2 3,
Slide 25: Indonesia – Key Financials
Indonesia – Key Financials 1Q17 1Q16 +/(-) 4Q16 +/(-) IDR'b IDR'b % IDR'b % Net interest income 828 765 8.2 853 (2.9) Fee & commission income 188 178 5.6 206 (8.7) Other non-interest income 100 138 (27.5) 102 (2.0) Total income 1,116 1,081 3.2 1,161 (3.9) Less: Expenses 741 706 5.0 782 (5.2) Operati
Slide 26: Greater China – Key Financials
Greater China – Key Financials 1Q17 1Q16 +/(-) 4Q16 +/(-) $m $m % $m % Net interest income 99 94 6.1 102 (2.5) Fee & commission income 25 29 (13.4) 29 (16.0) Other non-interest income 72 32 >100.0 41 75.1 Total income 196 155 27.0 173 13.8 Less: Expenses 85 85 0.1 88 (2.6) Operating profit 111 69 60
Slide 27: Thank You
itt UOB Thank You fue UOB RIGHT BY YOU