United Overseas Bank Limited · SGX:U11

United Overseas Bank — United Overseas Bank Ord — Q3 2024 Earnings Presentation

18 slides from United Overseas Bank's earnings presentation, Nov 8, 2024

  1. Slide 1: UOB Group Financial Updates

    UOB Group Financial Updates Lee Wai Fai Group Chief Financial Officer For the Nine Months / Third Quarter Ended 30 September 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 pre

  2. Slide 2: Key Highlights

    Key Highlights Core net profit after tax 1 • Third-quarter core net profit grew 10% to record $1.6b, with core ROE at 14.3% $1.6b + 10% QoQ + 11% YoY • NIM was stable at 2.05%, as loan margin widened on proactive deposit cost management. Net Interest Margin Loans grew 2% or $5b QoQ, contributed by b

  3. Slide 3: 3Q24 Core net profit rose 10% QoQ to $1.6 billion

    3Q24 Core net profit rose 10% QoQ to $1.6 billion Driven by broad-based revenue growth and healthy client franchise 9M24 9M23 YoY 3Q24 2Q24 QoQ 3Q23 YoY $m $m +/(-)% $m $m +/(-)% $m +/(-)% Net interest income 7,223 7,275 (1) 2,460 2,401 2 2,429 1 Net fee income 1,828 1,666 10 630 618 2 591 7 Other n

  4. Slide 4: Healthy growth across business franchise

    Healthy growth across business franchise Group Retail Income by business segment Tapping on rising affluence in Southeast Asia on enlarged franchise 9M24 9M23 YoY $'m $'m +17% +12% +32% increase1 in CASA pickup1 in card growth1 in wealth Group Retail 4,119 4,102 0% balance billings across management

  5. Slide 5: NIM stable at 2.05%; proactive deposit cost management to mitigate interest rate headwinds

    NIM stable at 2.05%; proactive deposit cost management to mitigate interest rate headwinds 2.64 2.55 2.51 2.56 2.62 2.47 Loan Margin (%) 2.51 Net Interest Margin (%) 2.12 2.09 2.02 2.02 2.05 2.05 2.04 Interbank & Securities Margin (%) 1.04 1.07 1.11 1.10 0.93 0.94 0.98 -1% 7,275 7,223 NII from Inter

  6. Slide 6: 3Q24 fees rose to a new-high, bolstered by healthy trade and wealth demand

    3Q24 fees rose to a new-high, bolstered by healthy trade and wealth demand and pick-up in card fees Fee Income 16 17 17 17 16 18 16 Fee / Total Income (%) +10% 1,828 1,666 239 Others ($m) 232 292 +2% Credit Card (Net) ($m) 257 618 630 519 591 569 580 Wealth ($m) 444 78 78 72 74 82 104 97 104 125 90

  7. Slide 7: All-time high customer-related treasury supported by strong hedging demands

    All-time high customer-related treasury supported by strong hedging demands, trading and liquidity performance more than doubled 51 50 54 42 43 41 38 Customer related / T&I (%) +19% 1,636 1,377 +77% 931 709 Others ($m) 794 527 439 389 400 364 309 190 183 180 705 Customer Related ($m) 582 219 216 270

  8. Slide 8: Core CIR steady on enlarged income base and continued cost discipline

    Core CIR steady on enlarged income base and continued cost discipline Cost-to-income Ratio (%) 43.9 43.7 46.8 - incl one-off Citi 44.4 44.6 44.1 42.4 - excl one-off Citi 40.9 41.7 43.2 41.0 41.9 41.8 41.5 4,516 4,305 1,046 + 3% Other expenses ($m) 1,018 725 + 6% IT-related expenses ($m) 684 1,590 1,

  9. Slide 9: Asset quality stable with NPL ratio unchanged at 1.5%

    Asset quality stable with NPL ratio unchanged at 1.5% ($m) 3Q23 4Q23 1Q24 2Q24 3Q24 NPAs at start of period 5,192 5,011 4,946 5,051 4,952 Non-individuals New NPAs _ 267 389 249 438 212 Less: Upgrades and recoveries 298 288 183 289 190 Write-offs 150 218 34 238 71 5,011 4,894 4,979 4,962 4,903 Indivi

  10. Slide 10: Higher specific allowance mainly from Thailand operational merger issues

    Higher specific allowance mainly from Thailand operational merger issues, expect to normalise in the next two quarters 36 29 26 Total credit costs (bps) 25 27 23 24 34 Specific credit costs (bps) 25 26 25 19 20 21 661 37 581 281 596 624 Specific allowance on loans ($m) 151 202 186 194 28 25 296 229

  11. Slide 11: Provision coverage remains stable

    Provision coverage remains stable 34 33 Specific allowance/NPA (%) 32 32 32 General allowance on loans include 0.9 0.9 0.9 0.9 0.9 RLAR/Performing loans (%) 5,109 4,976 4,993 5,026 4,851 RLAR ($m) 379 379 379 379 379 General allowance ($m) 3,042 3,007 3,000 2,901 2,963 Specific allowance ($m) 1,688

  12. Slide 12: Loans grew 2% QoQ from broad-based wholesale growth and mortgages

    Loans grew 2% QoQ from broad-based wholesale growth and mortgages By Industry By Geography +5% +2% 5% 4% 318 321 323 328 334 Rest of the world 45 45 47 49 49 24% 27% Greater China 51 49 51 53 49 67 69 69 69 73 $334b ASEAN-4 Sep-24 Singapore 155 158 157 158 163 9% Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 8

  13. Slide 13: Strong funding position, with healthy CASA growth and improved CASA mix

    Strong funding position, with healthy CASA growth and improved CASA mix 157 160 153 149 All-currency LCR (%) 141 121 120 121 118 Net Stable Fund Ratio (NSFR) (%) 116 82.3 82.2 82.1 83.4 82.3 Loan/Deposit Ratio (LDR) (%) 457 470 448 448 450 Wholesale Funding ($b) 1 71 60 61 70 67 FD & others ($b) 192

  14. Slide 14: Resilient capital position with CET1 ratio at 15.5%

    Resilient capital position with CET1 ratio at 15.5% 1 15.5 15.2% 13.0 13.4 13.9 13.4 (fully loaded) CET1 ratio (%) 272 276 276 284 252 RWA ($b) Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Leverage ratio (%) 6.8 6.9 7.0 7.1 6.8 (1) Based on MAS Notice 637 issued on 20 September 2023, with effect from 1 July 2

  15. Slide 15: Appendix

    ▪ Exposure to Greater China Appendix ▪ Exposure to Commercial Real Estate - Office 15

  16. Slide 16: Exposure to Greater China

    Exposure to Greater China 75.9 78.6 72.5 75.3 71.7 9.0 9.1 9.0 Debt ($b) 11.3 10.7 52.6 ▪ ~$2b in loans to Chinese 51.2 49.3 49.2 developers (1% of group loans) Non Bank ($b) 51.2 Bank ($b) 12.6 15.6 17.0 17.0 9.2 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Mainland China Hong Kong SAR Bank exposure ($13.3b)

  17. Slide 17: Exposure to Commercial Real Estate - Office

    Exposure to Commercial Real Estate - Office Commercial Real Estate - Office exposure is 7.3% of loans By geography as % of loans 0.2% • More than half of office 0.7% Others exposure is in Singapore 0.7% 0.8% United Kingdom 0.8% 0.9% • Overseas exposure backed Sep-24 United States 7.3% 1.5% 0.9% by s

  18. Slide 18: Thank You

    Thank You & Right By You

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