United Overseas Bank Limited · SGX:U11
United Overseas Bank — United Overseas Bank Ord — Q4 2024 Earnings Presentation
20 slides from United Overseas Bank's earnings presentation, Feb 19, 2025
Slide 1: UOB Group Financial Updates
UOB Group Financial Updates Lee Wai Fai Group Chief Financial Officer For the Financial Year / Fourth Quarter Ended 31 December 2024 Private and Confidential. Disclaimer: This material that follows is a presentation of general background information about UOB’s activities current at the date of the
Slide 2: Key Highlights
Key Highlights FY24 4Q24 • FY24 net profit rose 6% to record $6.0b, with ROE at 13.3%. Net profit at $1.5b for 4Q24 Net profit after tax $6.0b $1.5b • Fee income at new high of $2.4b on full year basis, led by double digit + 6% YoY - 5% QoQ growth in wealth fees as well as stronger card and loan-rel
Slide 3: Capital distribution strategy to reward our shareholders
Capital distribution strategy to reward our shareholders $3 billion 50 cents $2 billion Over 3 years Special Dividend Share Buyback Package to return surplus capital $0.8 billion payout over Committed completion through suite of capital options 2 tranches in 2025 over 3 years 3
Slide 4: FY24 Net profit rose 6% YoY to record $6.0 billion
FY24 Net profit rose 6% YoY to record $6.0 billion Supported by diverse income drivers and healthy franchise growth 2024 2023 YoY 4Q24 3Q24 QoQ 4Q23 YoY $m $m +/(-)% $m $m +/(-)% $m +/(-)% Net interest income 9,674 9,679 (0) 2,451 2,460 (0) 2,404 2 Net fee income 2,395 2,235 7 567 630 (10) 569 (0) O
Slide 5: Healthy growth across business franchise
Healthy growth across business franchise Group Retail Income by business segment Tapping on growing affluence in Southeast Asia on enlarged franchise, with wealth management income growing 30% to cross $1.1b 2024 2023 YoY $'m $'m +19% +12% +30% increase1 in CASA pickup1 in card growth1 in wealth Gro
Slide 6: NII stable QoQ as asset growth offset impact from interest rate cuts
NII stable QoQ as asset growth offset impact from interest rate cuts 2.60 2.50 Loan Margin (%) 2.55 2.47 2.51 2.56 2.48 Net Interest Margin (%) 2.09 2.03 2.02 2.02 2.05 2.05 2.00 Interbank & Securities Margin (%) 1.02 1.05 1.11 1.10 0.98 1.01 0% 0.94 9,679 9,674 NII from Interbank & Securities 1,529
Slide 7: 4Q24 fees eased from last quarter high alongside seasonally softer quarter
4Q24 fees eased from last quarter high alongside seasonally softer quarter for loan-related and wealth activities Fee Income +11% 3,156 2,839 362 Others ($m) 353 -3% 805 812 784 1,107 734 755 90 89 91 Credit Card ($m) 940 84 93 273 276 254 304 281 Wealth ($m) 698 595 173 183 164 178 151 Loan / Trade
Slide 8: Strong customer-related treasury income in FY24
Strong customer-related treasury income in FY24, trading and liquidity management activities continued to deliver good performance 46 59 44 50 54 Customer-related / T&I (%) 41 38 +15% 2,003 1,740 -48% 1,083 709 Others ($m) 974 527 439 400 364 367 309 183 152 180 Customer-Related ($m) 920 766 219 216
Slide 9: FY24 Core CIR at 42.5% on the back of continued investments
FY24 Core CIR at 42.5% on the back of continued investments in regional capabilities 46.8 45.6 Cost-to-income Ratio (%) 44.6 44.6 44.1 44.1 42.4 - incl one-off Citi 45.0 - excl one-off Citi 43.2 42.5 41.9 41.8 41.5 41.5 6,074 5,778 1,439 + 5% Other expenses ($m) 1,365 990 + 9% IT-related expenses ($
Slide 10: Asset quality remained resilient with NPL ratio stable at 1.5%
Asset quality remained resilient with NPL ratio stable at 1.5% ($m) 4Q23 1Q24 2Q24 3Q24 4Q24 NPAs at start of period 5,011 4,946 5,051 4,952 5,055 Non-individuals New NPAs _ 389 249 438 212 514 Less: Upgrades and recoveries 288 183 289 190 35 Write-offs 218 34 238 71 293 4,894 4,979 4,962 4,903 5,24
Slide 11: Total credit costs within guidance
Total credit costs within guidance 32 52 Total credit costs (bps) 25 36 Specific credit costs (bps) 27 25 26 23 24 873 34 25 25 20 21 784 807 1,063 Specific allowance on loans ($m) 212 281 202 186 194 439 28 25 296 212 158 169 (24) (9) (15) General allowance on loans ($m) (190) (227) 2023 2024 4Q23
Slide 12: Provision coverage remains adequate
Provision coverage remains adequate 33 32 32 32 32 Specific allowance/NPA (%) General allowance on loans include 0.9 0.9 0.9 0.9 0.8 RLAR/Performing loans (%) 4,976 4,993 4,851 5,026 4,764 RLAR ($m) 379 379 379 379 379 General allowance ($m) 3,007 3,000 2,901 2,963 2,733 Specific allowance ($m) 1,59
Slide 13: Loans grew a healthy 5% YoY from broad-based growth
Loans grew a healthy 5% YoY from broad-based growth in corporates and mortgages By Industry By Geography +5% +1% 6% 5% 321 323 328 334 338 Rest of the world 45 47 49 49 48 24% Greater China 49 51 53 49 52 27% 69 69 69 73 74 ASEAN-4 $338b Dec-24 Singapore 158 157 158 163 164 9% Dec-23 Mar-24 Jun-24 S
Slide 14: Strong liquidity and funding base with healthy CASA growth
Strong liquidity and funding base with healthy CASA growth 157 160 All-currency LCR (%) 149 141 143 120 121 118 Net Stable Fund Ratio (NSFR) (%) 116 116 82.2 82.1 83.4 82.3 82.7 Loan/Deposit Ratio (LDR) (%) 457 470 468 448 450 Wholesale Funding ($b) 1 71 60 61 70 64 189 186 183 FD & others ($b) 197
Slide 15: Robust capital strength with CET1 ratio at 15.5%
Robust capital strength with CET1 ratio at 15.5% 1 15.5 15.5 CET1 ratio (%) 13.4 13.9 13.4 CET1 ratio (%) 15.2 15.4 – Fully Loaded 276 276 284 252 260 RWA ($b) Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Leverage ratio (%) 6.9 7.0 7.1 6.8 6.9 (1) Based on MAS Notice 637 issued on 20 September 2023, with effe
Slide 16: Delivering consistent and sustainable returns to shareholders
Delivering consistent and sustainable returns to shareholders Core Dividend Capital Distribution Per ordinary share (¢) Package 180 $3 billion 170 50 cents 135 Special Dividend in 2025 120 92 85 75 Final 60 $2 billion Share Buyback by 2027 85 88 Interim 60 60 2021 2022 2023 2024 2025 to 2027 16
Slide 17: Appendix
▪ Exposure to Greater China Appendix ▪ Exposure to Commercial Real Estate - Office 17
Slide 18: Exposure to Greater China
Exposure to Greater China 75.9 78.6 72.5 75.3 73.7 9.1 9.0 9.0 8.0 Debt ($b) 10.7 52.6 ▪ ~$2b in loans to Chinese 51.2 49.3 52.2 49.2 developers (1% of group loans) Non Bank ($b) Bank ($b) 12.6 15.6 17.0 17.0 13.5 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mainland China Hong Kong SAR Bank exposure ($10.1b)
Slide 19: Exposure to Commercial Real Estate - Office
Exposure to Commercial Real Estate - Office Commercial Real Estate - Office exposure is 7.2% of loans • More than half of office By geography as % of loans exposure is in Singapore 0.3% 0.7% Others • Overseas exposure 0.8% 0.7% United Kingdom 0.8% 0.8% backed by strong sponsors United States Dec-24
Slide 20: Thank You
Thank You & Right By You
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