United Overseas Bank Limited · SGX:U11
United Overseas Bank — SIAS Corporate Connect Webinar (March 2023)
24 slides from United Overseas Bank's conference presentation, March 2023
Slide 1: SIAS Corporate Connect Webinar
SIAS Corporate Connect Webinar Record Profit Supported By Growth in Core Franchise March 2023 Disc laimer: The material in this presentation contains general background information about United Overseas Bank Limited (“UOB”) and its activ it ies as at the date of the presentation. The information is
Slide 2: Agenda
1. Overview of UOB Group 2. Our Growth Drivers Agenda 3. Consistent Track Record 4. Summary 5. Q&A 2
Slide 3: Overview of UOB Group
Overview of UOB Group 3
Slide 4: UOB Overview
UOB Overview Founding Key Statistics for FY22 Founded in August 1935 by a group of Chinese ■ Gross loans : SGD320b (USD238b1) businessmen and Datuk Wee Kheng Chiang, ■ Customer deposits : SGD369b (USD274b1) grandfather of the present UOB Group CEO, Mr. Wee ■ Loan / Deposit ratio : 85.6% Ee Cheong. ■
Slide 5: A leading Singapore bank; Established franchise in core market segments
A leading Singapore bank; Established franchise in core market segments Group Retail Group Wholesale Banking Global Markets ▪ Best Retail Bank in Singapore ▪ Best SME Bank in Singapore ▪ Strong player in Singapore dollar ▪ Strong player in credit cards and ▪ Seamless access to regional treasury inst
Slide 6: Proven track record of execution
Proven track record of execution ▪ UOB Group’s management has a proven track record in steering the Group through various global events and crises ▪ Stability of management team ensures consistent execution of strategies ▪ Disciplined management style which underpins the Group’s overall resilience a
Slide 7: Comprehensive regional banking franchise
Comprehensive regional banking franchise Extensive regional footprint with ~500 offices FY22 performance by segment Myanmar Greater China1 SGD154b 3 UOB 2 offices 27 offices Operating Assets under +11% Thailand Vietnam management YoY Open profit 153 offices 5 offices Malaysia Philippines Group SGD2.
Slide 8: Our Growth Drivers
Our Growth Drivers 8
Slide 9: UOB's strategic priorities
UOB’s strategic priorities Tap on rising regional Capture cross-border Forge a sustainable future affluence opportunities ▪ Acquire and serve customers via ▪ Deep and entrenched Asian ▪ Huge opportunities for green digital channels, with a focus on footprint enables UOB to capture financing as urban
Slide 10: Well-timed transformational Citigroup deal, generating higher risk-weighted returns
Well-timed transformational Citigroup deal, generating higher risk-weighted returns Financial impact so far Our 2026 Promise ▪ Group to remain well capitalised ▪ ROE > 13% ▪ RoRWA > 2% Positive boost Costs1 in Asset quality to income tandem with stable ▪ Maintain dividend payout ratio drivers income
Slide 11: Income and ASEAN franchise augmented by Citi
Integration progress Income and ASEAN franchise augmented by Citi • Completed the acquisition of Citigroup's consumer portfolio in Malaysia and Thailand on 1 Nov 2022, and Vietnam on 1 Mar 2023 Accelerate growth Digitally-enabled Strong cards Augment wealth • Indonesia to come onboard by end of 2023
Slide 12: Consumers: Tapping on rising affluence and growing digitalisation in Southeast Asia
Consumers: Tapping on rising affluence and growing digitalisation in Southeast Asia Driving Digital Adoption ~7m >800k Retail customers New-to-bank customers Scale UOB TMRW across >70% are digitally 55% are digitally ASEAN to digitally acquire at enabled acquired low cost Ecosystem Partnerships 30 +
Slide 13: Wholesale: Growing regional franchise, capturing cross-border opportunities
Wholesale: Growing regional franchise, capturing cross-border opportunities Strengthening Connectivity +12%1 +31%2 Cross-border Suppliers and Across our ASEAN footprint income growth distributors within and global network (formed 28%2 of Financial Supply Chain Group Wholesale Management (FSCM) Banki
Slide 14: Championing sustainability with ecosystem partners
Championing sustainability with ecosystem partners Work closely with our Maintained Net-zero customers to assist them Commitment operational carbon with their transition neutrality across our Ensuring just and orderly journeys, balancing operations in 2022 transition growth with social responsibilit
Slide 15: Consistent Track Record
Consistent Track Record • If you try to asses 15
Slide 16: Growing loans without compromising asset quality
Growing loans without compromising asset quality Loan book up >10x in 20 years with asset quality staying well managed despite macro challenges Net loans Non-performing loans ratio 350 315 12.0% 10.3% 300 10.0% 250 8.0% (S$bn) 200 (%) 6.0% 150 4.0% 100 2.0% 1.6% 50 27 - 0.0% 16
Slide 17: Diversified loan portfolio
Diversified loan portfolio Housing loans Professionals 24% Others and private 5% Transport, individuals storage and 9% communication General Industry 5% commerce 11% FIs, investment Building & and holding construction companies Manufacturing 27% Large corporates Others 12% 7% and institutions 15% 53
Slide 18: Business largely funded by customer deposits
Business largely funded by customer deposits Customer deposits Customer deposit mix 400 369 Others Fixed 350 Savings 5% deposits deposits 300 48% 24% 250 (S$bn) 200 150 Current 100 accounts 41 23% 50 - Fixed deposits Current accounts Savings deposits Others 18
Slide 19: Consistently delivering profits over the years
Consistently delivering profits over the years UOB has remained profitable over various economic cycles Total income Net profit after tax1 14,000 6,000 11,575 12,000 4,819 5,000 10,000 4,000 (S$mn) (S$mn) 8,000 3,000 6,000 2,000 4,000 1,000 760 1,788 2,000 - - Asian SARS Global Fed Oil & Covid-19 Fi
Slide 20: Dividends in line with higher earnings
Dividends in line with higher earnings Net dividend per ordinary share • Dividend per share (DPS) has increased 1.35 1.30 1.60 1.60 1.20 1.20 significantly over the years 1.40 1.40 1.00 0.90 0.75 0.78 • 0.75 1.20 0.70 1.20 Shareholders can expect higher DPS as 0.70 0.70 0.60 0.60 0.60 1.00 1.00 S$ 0
Slide 21: Summary
Summary 21
Slide 22: Why UOB?
Why UOB? Integrated regional Balance growth with Stable management Strong fundamentals platform stability ▪ Proven track record in ▪ Entrenched domestic ▪ Sustainable revenue ▪ Continue to diversify steering the bank through presence and deep local channels as a result of portfolio, strengthen vario
Slide 23: Questions & Answers
Questions & Answers 23
Slide 24: Right By You
& Right By You
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