United Overseas Bank Limited · SGX:U11
United Overseas Bank — H1 2012 Earnings Presentation
27 slides from United Overseas Bank's earnings presentation, Aug 7, 2012
Slide 1: UOB Group First Half 2012 Financial Highlights
UOB Group First Half 2012 Financial Highlights Lee Wai Fai Group Chief Financial Officer 7 August 2012 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: 1H12 Net Profit Rose 12% to $1.4 billion
1H12 Net Profit Rose 12% to $1.4 billion. Double Digit Growth across All Top Line Income Categories 1H12 1H11 +/(-) $m $m % Net interest income 1,980 1,785 10.9 Fee and commission income 748 668 12.0 Other non-interest income 511 407 25.5 Total income 3,239 2,860 13.2 Less: Total expenses 1,341 1,19
Slide 3: Quarter Profit Up 4% QoQ and 12% YoY to $713 million
Quarter Profit Up 4% QoQ and 12% YoY to $713 million 2Q12 1Q12 +/(-) 2Q11 +/(-) $m $m % $m % Net interest income 981 998 (1.7) 913 7.4 Fee and commission income 386 362 6.7 338 14.3 Other non-interest income 243 268 (9.5) 186 30.3 Total income 1,610 1,629 (1.1) 1,437 12.0 Less: Total expenses 666 67
Slide 4: 1H12 recorded Higher NII and NIM; QoQ Lower amidst High Liquidity
1H12 recorded Higher NII and NIM; QoQ NII and NIM Lower amidst High Liquidity and Keen Competition in the Market Net Interest Income (NII) and Margin 3.02% 2.88% 2.41% 2.34% 2.47% 2.40% 2.31% 2.31% 2.29% 2.36% 2.09% 1.92% 1.95% 1.95% 1.92% 1.89% 1.98% 1.92% 1.21% 0.97% 1.03% 0.88% 1.13% 1.02% 0.94%
Slide 5: Upward Momentum Maintained. 2Q12 Fee Income recorded Another New High
Upward Momentum Maintained. 2Q12 Fee Income recorded Another New High Non-Interest Income (Non-NII) and Non-NII Ratio 39.1% 38.9% 35.5% 38.7% 39.1% 32.0% 36.5% 32.8% 33.8% 35.9% 23.1% 23.1% 21.1% 18.1% 23.5% 23.8% 24.0% 22.1% 22.2% 20.1% 1,975 2,021 1,732 811 703 630 629 755 1,259 524 500 446 268 24
Slide 6: Expenses Controlled, Well Paced with Business Growth
Expenses Controlled, Well Paced with Business Growth Operating Expenses and Expense / Income Ratio 43.0% 41.0% 41.4% 46.4% 38.4% 42.3% 42.6% 41.5% 41.3% 38.9% 2,450 2,258 2,074 1,047 1,016 631 625 676 666 959 1,341 612 257 271 275 293 286 580 1,242 1,403 1,116 382 380 762 355 360 350 2009 2010 2011
Slide 7: Total Credit Costs Stable at 30bp
Total Credit Costs Stable at 30bp Impairment Charges on Loans 76bp 35bp 30bp 30bp 59bp 30bp 30bp 30bp 30bp 30bp 18bp 24bp 12bp 23bp 26bp 21bp 604 7bp 8bp 95 81 79 190 163 174 22 26 2009 2010 2011 1H12 2Q11 3Q11 4Q11 1Q12 2Q12 Individual Impairment Charges on Loans ($m) Individual Impairment Charges
Slide 8: Performance by Business Segment
Performance by Business Segment 1H12 2% 1H12 1H11 +/(-) 18% 30% Segment Operating Profit $m $m % Group Retail (GR) 575 505 13.9 54% Group Wholesale (GW) 1,021 841 21.4 Elim (4)% Global Markets & Investment Mgt (GMIM) 337 294 14.6 1H11 Others 31 79 (60.8) 5% 18% Elimination (67) (54) (24.1) 30% Total
Slide 9: Regional Countries Continued to Perform, Operating Profit Rose 33% YoY
Regional Countries Continued to Perform, Operating Profit Rose 33% YoY. Overseas Contribution Hit 40%, Up 4% points YoY. 1H12 At 8% 40% 6% constant 5% FX rate 5% Operating 1H12 1H11 +/(-) +/(-) 60% Profit $m $m % % 16% Singapore 1,133 1,061 6.8 6.8 Regional: 617 474 30.3 32.6 1H11 Malaysia 303 248 2
Slide 10: Loans Growth Resilient, Regional Countries Outpaced Singapore
Loans Growth Resilient, Regional Countries Outpaced Singapore. 1H12 1H12 1H11 +/(-) 2Q12 1Q12 +/(-) 6% 6% 4% Gross Loans $b $b % $b $b % 5% 15% Singapore 96.4 85.6 12.6 96.4 95.2 1.3 64% Regional: 44.8 36.5 22.8 44.8 43.6 3.0 Malaysia 22.2 17.3 28.2 22.2 21.8 2.1 Thailand 7.9 7.0 12.1 7.9 7.7 2.6 1H
Slide 11: Robust Deposits Franchise; Regional Deposits Up 31% YoY
Robust Deposits Franchise; Regional Deposits Up 31% YoY 1H12 1H11 +/(-) 2Q12 1Q12 +/(-) 1H12 5% 6% $b $b % $b $b % 4% 4% Singapore 112.9 105.2 7.3 112.9 115.3 (2.1) 14% 67% Regional: 46.8 35.7 31.1 46.8 45.0 4.2 Malaysia 24.2 18.0 35.0 24.2 23.0 5.3 Thailand 6.8 5.7 19.9 6.8 6.3 7.6 Indonesia 6.2 4.
Slide 12: Sturdy Liquidity Position Sustained
Sturdy Liquidity Position Sustained Customer Loans, Deposits and LDR 86.6% 86.9% 83.3% 86.0% 87.1% 169.5 168.5 168.8 148.4 158.4 141.2 144.9 146.9 128.5 137.6 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Net Customer Loans ($b) Customer Deposits ($b) Loans / Deposits Ratio (LDR) (%) 12
Slide 13: Credit Quality Intact
Credit Quality Intact NPL ($m) 1,930 2,109 2,020 2,071 2,113 NPL Ratio 1.5% 1.5% 1.4% 1.4% 1.4% 494 550 538 356 537 31 41 30 85 31 32 98 83 85 297 83 293 315 312 309 336 347 346 370 374 817 855 763 714 721 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Singapore Malaysia Thailand Indonesia Greater China Others
Slide 14: Strong Impairment Coverage
Strong Impairment Coverage Total Loan Impairment 2,711 2,800 2,752 2,828 2,887 ($m) 247.6% 227.8% 238.5% 233.5% 227.0% 140.5% 132.8% 136.2% 136.6% 136.6% 847 770 835 873 837 1,874 1,953 1,982 1,993 2,014 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Collective Impairment ($m) Individual impairment ($m) Cumulat
Slide 15: Capital Ratios Remained Strong
Capital Ratios Remained Strong Capital Adequacy Ratios (CAR) Total CAR 19.2% 17.5% 17.1% 17.0% 16.7% Tier 1 CAR 14.5% 14.0% 13.9% 13.9% 13.5% Core Tier 1 CAR 12.6% 12.3% 11.9% 12.3% 12.3% Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 $b Core Tier 1 Capital 15.0 15.2 15.9 16.5 16.5 Tier 1 Capital 17.1 17.4 18.0
Slide 16: Interim Dividend
Interim Dividend 10.0 40.0 40.0 40.0 20.0 20.0 20.0 20.0 2009 2010 2011 1H12 Net Netdividend dividend per perordinary ordinaryshare share(¢) (¢) Interim Interim Final Final Special Special Interim dividend Payout amount ($m) 301 306 315 315 Payout ratio (%) 34 24 25 23 16
Slide 17: In Summary, 1H12 Results Showed:
In Summary, 1H12 Results Showed: Group NPAT of $1.4 billion, up 12%. NII & NIM lower in 2Q12 but more than compensated by the strong increase in fee income. Efforts to boost fee income to counter interest rate pressures continue to show results. Fee income hit a new high of $386 million in 2Q1
Slide 18: Singapore – Summarised Income Statement
Singapore – Summarised Income Statement 1H12 1H11 +/(-) 2Q12 1Q12 +/(-) $m $m % $m $m % Net interest income 1,075 1,013 6.2 524 551 (4.8) Fee and commission income 468 412 13.4 243 224 8.4 Other non-interest income 349 297 17.2 176 173 1.7 Total income 1,892 1,722 9.8 943 948 (0.5) Less: Total expen
Slide 19: Singapore – Key Financial Indicators
Singapore – Key Financial Indicators 1H12 1H11 +/(-) 2Q12 1Q12 +/(-) % % % pt % % % pt Net interest margin 1.59 1.51 0.08 1.55 1.63 (0.08) Non-NII / Total income 43.2 41.2 2.0 44.4 41.9 2.5 Expense / Total income 40.1 38.4 1.7 39.2 40.9 (1.7) Customer loans (net) - $b 94.6 83.7 13.0% 94.6 93.4 1.2%
Slide 20: Malaysia – Summarised Income Statement
Malaysia – Summarised Income Statement 1H12 1H11 +/(-) 2Q12 1Q12 +/(-) RM'm RM'm % RM'm RM'm % Net interest income 735 643 14.3 377 358 5.3 Fee and commission income 242 199 21.6 132 110 20.0 Other non-interest income 118 96 22.9 59 59 - Total income 1,095 938 16.7 568 527 7.8 Less: Total expenses 3
Slide 21: Malaysia – Key Financial Indicators
Malaysia – Key Financial Indicators 1H12 1H11 +/(-) 2Q12 1Q12 +/(-) % % % pt % % % pt Net interest margin 2.22 2.68 (0.46) 2.22 2.23 (0.01) Non-NII / Total income 32.9 31.4 1.5 33.6 32.1 1.5 Expense / Total income 32.1 36.1 (4.0) 32.2 32.1 0.1 Customer loans (net) - RM'b 54.7 41.7 31.1% 54.7 52.0 5.
Slide 22: Thailand – Summarised Income Statement
Thailand – Summarised Income Statement 1H12 1H11 +/(-) 2Q12 1Q12 +/(-) THB'm THB'm % THB'm THB'm % Net interest income 4,724 3,868 22.1 2,442 2,282 7.0 Fee and commission income 1,412 1,083 30.4 674 738 (8.7) Other non-interest income 218 (19) >100.0 80 138 (42.0) Total income 6,354 4,932 28.8 3,196
Slide 23: Thailand – Key Financial Indicators
Thailand – Key Financial Indicators 1H12 1H11 +/(-) 2Q12 1Q12 +/(-) % % % pt % % % pt Net interest margin 3.59 3.27 0.32 3.57 3.60 (0.03) Non-NII / Total income 25.7 21.6 4.1 23.6 27.7 (4.1) Expense / Total income 64.2 71.8 (7.6) 65.1 63.3 1.8 Customer loans (net) - THB'b 189.6 169.7 11.7% 189.6 181
Slide 24: Indonesia – Summarised Income Statement
Indonesia – Summarised Income Statement 1H12 1H11 +/(-) 2Q12 1Q12 +/(-) IDR'b IDR'b % IDR'b IDR'b % Net interest income 1,282 1,039 23.4 659 623 5.8 Fee and commission income 312 314 (0.6) 177 135 31.1 Other non-interest income 167 134 24.6 70 97 (27.8) Total income 1,761 1,487 18.4 906 855 6.0 Less
Slide 25: Indonesia – Key Financial Indicators
Indonesia – Key Financial Indicators 1H12 1H11 +/(-) 2Q12 1Q12 +/(-) % % % pt % % % pt Net interest margin 5.45 5.71 (0.26) 5.55 5.35 0.20 Non-NII / Total income 27.2 30.1 (2.9) 27.3 27.1 0.2 Expense / Total income 55.9 55.5 0.4 57.0 54.7 2.3 Customer loans (net) - IDR't 42.4 34.0 24.7% 42.4 40.0 6.
Slide 26: Greater China – Summarised Income Statement
Greater China – Summarised Income Statement 1H12 1H11 +/(-) 2Q12 1Q12 +/(-) $m $m % $m $m % Net interest income 122 67 83.0 61 61 1.2 Fee and commission income 32 31 3.1 15 16 (6.5) Other non-interest income 50 53 (5.9) 16 34 (54.0) Total income 203 150 35.4 92 111 (16.9) Less: Total expenses 86 76
Slide 27: Greater China – Key Financial Indicators
Greater China – Key Financial Indicators 1H12 1H11 +/(-) 2Q12 1Q12 +/(-) % % % pt % % % pt Net interest margin 1.34 1.08 0.26 1.34 1.33 0.01 Non-NII / Total income 40.0 55.6 (15.6) 33.5 45.4 (11.9) Expense / Total income 42.5 50.7 (8.2) 46.2 39.5 6.7 Customer loans (net) - $b 8.9 7.2 24.1% 8.9 8.5 4