United Overseas Bank Limited · SGX:U11

United Overseas Bank — H1 2009 Earnings Presentation

27 slides from United Overseas Bank's earnings presentation, Aug 5, 2009

  1. Slide 1: UOB Group First Half 2009 Briefing: Financial Highlights

    UOB Group First Half 2009 Briefing Financial Highlights Lee Wai Fai Chief Financial Officer 5 August 2009 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 summar

  2. Slide 2: Strong Operating Profit Growth

    Strong Operating Profit Growth 1H09 1H08 + / (-) $m $m % Net interest income 1,857 1,725 7.6 Non-interest income 985 964 2.1 Total income 2,842 2,690 5.7 Less: Total expenses 1,011 1,015 (0.4) Operating profit 1,831 1,675 9.3 Less: Intangible assets amortised 5 5 (8.2) Individual impairment - loans

  3. Slide 3: Profit Up 15.0% QoQ

    Profit Up 15.0% QoQ 2Q09 1Q09 + / (-) 2Q08 + / (-) $m $m % $m % Net interest income 908 949 (4.4) 873 3.9 Non-interest income 551 434 26.8 550 0.1 Total income 1,458 1,384 5.4 1,424 2.4 Less: Total expenses 520 491 6.1 518 0.4 Operating profit 938 893 5.0 905 3.6 Less: Intangible assets amortised 3

  4. Slide 4: Higher Net Interest Income and Margin YoY

    Higher Net Interest Income and Margin YoY Net Interest Income and Margin 3.25% 3.21% 3.09% 3.06% 3.08% 3.02% 3.19% 3.07% 3.04% 2.38% 2.45% 2.41% 2.35% 2.27% 2.23% 2.21% 1.99% 2.04% 0.93% 1.21% 1.29% 1.09% 1.13% 0.66% 0.56% 0.93% 0.88% 957 949 1,850 873 893 908 2nd 1,458 150 188 1,386 143 134 157 Hal

  5. Slide 5: Strong Non-Interest Income

    Strong Non-Interest Income Non-Interest Income (Non-NII) and Non-NII Ratio 35.8% 38.8% 31.9% 34.7% 23.7% 26.2% 38.7% 37.8% 20.8% 26.3% 29.0% 31.4% 16.4% 20.3% 22.6% 968 964 985 17.0% 17.3% 15.4% 924 854 236 372 379 710 520 550 551 660 301 208 434 210 391 261 319 326 552 689 46 162 194 589 592 450 50

  6. Slide 6: Disciplined Cost Management

    Disciplined Cost Management Operating Expenses and Expense / Income Ratio 41.1% 41.4% 39.0% 41.6% 39.4% 35.6% 36.4% 35.5% 35.7% 2nd 1,043 1,035 518 504 532 491 520 Half 921 71 71 76 66 71 1st 976 1,015 1,011 Half 815 2006 2007 2008 1H09 2Q08 3Q08 4Q08 1Q09 2Q09 Operating OperatingExpenses Expenses($

  7. Slide 7: Prudent Provisioning Policy

    Prudent Provisioning Policy Impairment Charges on Loans 87 bp 90 bp 63 bp 84 bp 47 bp 75 bp 66 bp 60 bp 19 bp 57 bp 33 bp 71 bp 41 bp 18 bp 27 bp 27 bp 2nd 249 36 320 182 169 Half 151 56 1st 119 65 67 86 75 Half 2006 2007 2008 1H09 2Q08 3Q08 4Q08 1Q09 2Q09 Individual IndividualImpairment ImpairmentC

  8. Slide 8: Performance By Business Segment

    Performance By Business Segment 1H09 2006 1H09 2006 1H09 1H08 + / (-) PFS 25% Segment Operating Profit * $m $m % Other (3%) Personal Financial Services (PFS) 451 496 (9.1) GMIM 36% Institutional Financial Services (IFS) 764 716 6.7 IFS 42% Global Markets & Investment Mgt (GMIM) 670 355 88.7 Other (5

  9. Slide 9: Strong Contribution From Singapore

    Strong Contribution From Singapore 1H09 1H09 At constant 1H09 1H08 + / (-) FX rate Singapore 70% Operating Profit * $m $m % % Malaysia 11% Thailand 4% Singapore 1,274 1,181 7.9 7.9 Indonesia 5% Greater China 3% Overseas 557 494 12.7 16.7 Other 7% Malaysia 198 176 12.4 15.8 Thailand 73 85 (13.5) (12.

  10. Slide 10: Increased NPA amid Global Economic Downturn

    Increased NPA amid Global Economic Downturn NPA ($m) 1,839 1,943 2,305 2,449 2,755 NPA Ratio 1.0% 1.0% 1.2% 1.3% 1.5% 279 264 243 292 314 2,476 2,062 2,185 1,547 1,629 Jun'08 Sep'08 Dec'08 Mar'09 Jun'09 Loans Loans($m) ($m) Debt Debtsecurities securities($m) ($m) 10

  11. Slide 11: Higher NPL Reflecting Difficult Economic Conditions

    Higher NPL Reflecting Difficult Economic Conditions NPL ($m) 1,547 1,629 2,062 2,185 2,476 NPL Ratio * 1.5% 1.5% 2.0% 2.1% 2.4% 415 287 239 109 101 119 95 67 113 60 89 20 27 431 63 70 391 430 367 367 495 512 438 495 480 535 759 822 931 572 Jun'08 Sep'08 Dec'08 Mar'09 Jun'09 Singapore Malaysia Thaila

  12. Slide 12: Adequate Impairment Coverage

    Adequate Impairment Coverage Total Impairment 2,247 2,415 2,548 2,577 2,813 ($m) 227.7% 224.7% 203.7% 191.5% 185.9% 122.2% 124.3% 110.5% 105.2% 102.1% 1,008 1,068 1,165 881 973 1,366 1,442 1,540 1,509 1,648 Jun'08 Sep'08 Dec'08 M ar'09 Jun'09 Collective CollectiveImpairment Impairment($m) ($m) Indiv

  13. Slide 13: Liquidity Preserved

    Liquidity Preserved Customer Loans, Deposits and L/D Ratio 89.3% 88.8% 84.5% 83.5% 83.6% 113.1 118.2 119.4 117.0 109.0 97.4 100.4 99.8 99.7 97.8 Jun'08 Sep'08 Dec'08 Mar'09 Jun'09 Net NetCustomer CustomerLoans Loans($b) ($b) Customer CustomerDeposits Deposits($b) ($b) Loans Loans//Deposits Deposits(

  14. Slide 14: Balanced Investment Portfolio

    Balanced Investment Portfolio Dec’08 Mar’09 Jun’09 Jun’09 QoQ $m $m $m % mix $m Singapore government securities * 8,733 12,509 13,118 41% 609 Other government securities * 1,596 1,496 2,189 7% 692 Investment securities 15,674 15,758 16,395 52% 637 Debt 13,453 13,627 13,876 44% 248 Equity 2,221 2,131

  15. Slide 15: Singapore – Summarised P/L

    Singapore – Summarised P/L 1H09 1H08 +/(-) 2Q09 1Q09 +/(-) $’m $’m % $’m $’m % Net interest income 1,176 1,016 15.8 574 602 (4.8) Non-interest income 702 724 (2.9) 405 297 36.3 Total income 1,879 1,739 8.0 979 900 8.8 Less: Total expenses 605 559 8.3 328 277 18.4 Operating profit 1,274 1,181 7.9 651

  16. Slide 16: Singapore – Key Financial Indicators

    Singapore – Key Financial Indicators 1H09 1H08 +/(-) 2Q09 1Q09 +/(-) % % % pt % % % pt Net interest margin 2.09 1.99 0.10 2.07 2.11 (0.04) Non-NII / Total income 37.4 41.6 (4.2) 41.4 33.0 8.4 Expense / Total income 32.2 32.1 0.1 33.5 30.8 2.7 Customer loans (net) – $’m 63,678 62,022 2.7% 63,678 63,9

  17. Slide 17: Malaysia – Summarised P/L

    Malaysia – Summarised P/L 1H09 1H08 +/(-) 2Q09 1Q09 +/(-) RM’m RM’m % RM’m RM’m % Net interest income 478 482 (0.8) 234 244 (4.1) Non-interest income 235 174 35.1 110 125 (12.0) Total income 713 656 8.7 344 369 (6.8) Less: Total expenses 237 245 (3.3) 116 121 (4.1) Operating profit 476 411 15.8 228

  18. Slide 18: Malaysia – Key Financial Indicators

    Malaysia – Key Financial Indicators 1H09 1H08 +/(-) 2Q09 1Q09 +/(-) % % % pt % % % pt Net interest margin 2.47 2.54 (0.07) 2.37 2.57 (0.20) Non-NII / Total income 33.0 26.5 6.5 32.0 33.9 (1.9) Expense / Total income 33.2 37.3 (4.1) 33.7 32.8 0.9 Customer loans (net) – RM’m 27,578 27,404 0.6% 27,578

  19. Slide 19: Thailand – Summarised P/L

    Thailand – Summarised P/L 1H09 1H08 +/(-) 2Q09 1Q09 +/(-) THB’m THB’m % THB’m THB’m % Net interest income 3,454 3,647 (5.3) 1,666 1,788 (6.8) Non-interest income 1,477 1,725 (14.4) 703 774 (9.2) Total income 4,931 5,372 (8.2) 2,369 2,562 (7.5) Less: Total expenses 3,207 3,395 (5.5) 1,526 1,681 (9.2)

  20. Slide 20: Thailand – Key Financial Indicators

    Thailand – Key Financial Indicators 1H09 1H08 +/(-) 2Q09 1Q09 +/(-) % % % pt % % % pt Net interest margin 3.69 3.91 (0.22) 3.55 3.84 (0.29) Non-NII / Total income 30.0 32.1 (2.1) 29.7 30.2 (0.5) Expense / Total income 65.0 63.2 1.8 64.4 65.6 (1.2) Customer loans (net) – THB’m 135,084 152,349 (11.3)%

  21. Slide 21: Indonesia – Summarised P/L

    Indonesia – Summarised P/L 1H09 1H08 +/(-) 2Q09 1Q09 +/(-) IDR’b IDR’b % IDR’b IDR’b % Net interest income 962 721 33.4 472 490 (3.7) Non-interest income 375 166 125.9 187 188 (0.5) Total income 1,337 887 50.7 659 678 (2.8) Less: Total expenses 639 537 19.0 341 298 14.4 Operating profit 698 350 99.4

  22. Slide 22: Indonesia – Key Financial Indicators

    Indonesia – Key Financial Indicators 1H09 1H08 +/(-) 2Q09 1Q09 +/(-) % % % pt % % % pt Net interest margin 6.34 5.89 0.45 6.29 6.39 (0.10) Non-NII / Total income 28.0 18.7 9.3 28.4 27.7 0.7 Expense / Total income 47.8 60.5 (12.7) 51.7 44.0 7.7 Customer loans (net) – IDR’b 22,448 20,753 8.2% 22,448 2

  23. Slide 23: China – Summarised P/L

    China – Summarised P/L 1H09 1H08 +/(-) 2Q09 1Q09 +/(-) CNY’m CNY’m % CNY’m CNY’m % Net interest income 199 250 (20.4) 94 105 (10.5) Non-interest income * 15 56 (73.2) 11 4 175.0 Total income 214 306 (30.1) 105 109 (3.7) Less: Total expenses 114 131 (13.0) 57 57 - Operating profit 100 175 (42.9) 48 5

  24. Slide 24: China – Key Financial Indicators

    China – Key Financial Indicators 1H09 1H08 +/(-) 2Q09 1Q09 +/(-) % % % pt % % % pt Net interest margin 2.84 3.89 (1.05) 2.79 2.89 (0.10) Non-NII / Total income 7.0 18.3 (11.3) 10.5 3.7 6.8 Expense / Total income 53.3 42.8 10.5 54.3 52.3 2.0 Customer loans (net) – CNY’m 9,950 10,399 (4.3)% 9,950 10,4

  25. Slide 25: Strong Capital Position

    Strong Capital Position Capital Adequacy Ratios 17.3% 17.5% 15.5% 15.3% 14.4% Total CAR ` 12.3% 12.6% 11.2% 10.9% 10.2% Tier 1 CAR Jun'08 Sep'08 Dec'08 Mar'09 Jun'09 $m Tier 1 Capital 11,630 13,177 12,456 13,127 13,223 RWA 114,368 118,044 114,712 106,634 104,821 25

  26. Slide 26: High Dividend Payout Ratio

    High Dividend Payout Ratio 24.2 12.3 41.0 45.0 40.0 16.0 16.4 20.0 20.0 2006 2007 2008 1H09 Net Netdividend dividend per perordinary ordinaryshare share(¢) (¢) Interim Interim Final Final Special Special Interim dividend Payout amount ($m) 244 249 301 301 Payout ratio (%) 28 23 27 34 26

  27. Slide 27: In Summary …

    In Summary … ƒ Strong operating profit growth ƒ Higher NIM YoY ƒ Disciplined cost management ƒ Key Singapore market remains stable ƒ Increased NPA amid economic downturn, adequate provisioning ƒ Full provision for CDO portfolio ƒ Strong CAR and improved AFS reserve ƒ High dividend payout ratio 27

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