United Overseas Bank Limited · SGX:U11
United Overseas Bank — Debt Investor Presentation (March 2025)
50 slides from United Overseas Bank's debt investor presentation, March 2025
Slide 1: UOB Group: Record earnings with healthy franchise growth across ASEAN
UOB Group Record earnings with healthy franchise growth across ASEAN March 2025 Discla imer: The mater ial in th is presentat ion conta ins gener al b ackgro un d informat ion a bout Un ite d Oversea s Bank L im ite d (“UOB”) and its act ivit ies as at the d ate of the pre sentat ion. The informat i
Slide 2: Agenda
Agenda 1 Overview of UOB Group 2 Strong UOB Fundamentals Appendices A Macroeconomic Outlook B Sustainable Development Target C Growth Drivers D Latest Financials Private and Confidential. Disclaimer: This material that follows is a presentation of general background information about UOB’s activitie
Slide 3: 1. Overview of UOB Group
1. Overview of UOB Group 3
Slide 4: UOB Overview
UOB Overview Founding Key Statistics for FY24 Founded in August 1935 by a group of Chinese ■ Gross loans : SGD338b (USD249b1) businessmen and Datuk Wee Kheng Chiang, ■ Customer deposits : SGD404b (USD297b1) grandfather of the present UOB Group CEO, Mr. Wee ■ Loan / Deposit ratio : 82.7% Ee Cheong. ■
Slide 5: 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 5
Slide 6: 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 7: 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 8: Comprehensive regional banking franchise
Comprehensive regional banking franchise Extensive Regional Footprint FY24 performance by segment Myanmar Greater China1 Group Income 1 branch 20 branches Retail SGD190b2 Assets under Thailand 147 branches Vietnam 5 branches SGD5.5b management +8% YoY Malaysia Philippines Flat YoY 55 branches 1 bran
Slide 9: UOB Sydney – Overview
UOB Sydney – Overview Long-term commitment to Australia Gross Loan Outstanding by Industry Others ▪ Australian operations are a key component of UOB Group’s regional 20% strategy Transportation Property/Real Estate PPP ▪ UOB Group obtained an Australian merchant banking license in 1986 4% 44% and a
Slide 10: UOB Sydney – Balance Sheet Summary
UOB Sydney – Balance Sheet Summary Funding Mix Total Assets Placement Capital UOB -Banks 4% HQLA Group 1% 6% NB 11% Liquidity Mgt. Intragroup Deposits Portfolio RBA Repo Placement (Incl.NCD) 28% 9% 9% 51% Interbank Deposits 3% Debt Issued 27% Loans to customers 51% Total Assets: ▪ AUD 23bn as of 31
Slide 11: Comparison against peers
Comparison against peers Standalone Cost Returns Liquidity Strength Management Moody’s baseline Costs/income Return on average Loan/deposit Moody’s S&P Fitch credit assessment ratio assets (annualised) ratio Aa1 AA– AA– UOB a1 43%1 1.2%1 83% Aa1 AA– AA– OCBC a1 40% 1.5% 81% 1 1 Aa1 AA– AA– DBS a1 40
Slide 12: Capital and leverage ratios
Capital and leverage ratios Reported Common Equity Tier 1 CAR 17.1% 17.0% 15.5% 15.0% 14.9% 14.7% 14.2% 13.6% 13.5% 13.2% 13.1% 12.4% 12.2% Fully-loaded 15.3% 15.1% 15.4% 2 2 2 3 3 Return on OCBC DBS UOB CIMB HSBC MBB SCB Citi BOA RBC TD NAB CBA Average Equity 1 1 (annualised) 13.7% 18.0% 13.7% 11.7
Slide 13: 2. Strong UOB Fundamentals
2. Strong UOB Fundamentals 13
Slide 14: Disciplined balance sheet management
Disciplined balance sheet management Return on risk-weighted assets Focus on 1.83% 2.29%1 2.34%1 Healthy 1.27% 1.68% balance portfolio FY20 FY21 FY22 FY23 FY24 sheet quality efficiency Current Account Saving Account Balances (SGD b) 6.2% CAGR2 174 198 175 189 221 FY20 FY21 FY22 FY23 FY24 Proactive R
Slide 15: Loans grew a healthy 5% YoY from broad-based growth in corporates and mortgages
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 $338b Dec-24 Singapore 158 157 158 163 164 9% Dec-23 Mar-24 Jun-24 S
Slide 16: Exposure to Greater China
Exposure to Greater China 75.9 78.6 72.5 75.3 73.7 9.1 9.0 9.0 8.0 Debt ($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 17: 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 18: Singapore mortgages remain a low-risk asset class
Singapore mortgages remain a low-risk asset class Low risk of housing bubbles due to cooling measures High national savings rate (% of GDP) (3Q14 = 100) US , 195.1 CA , 185.4 SG, 40 AU , 167.0 SG, 138.6 AU, 23 CA, 22 HK, 103.4 HK, 24 US, 18 1Q14 4Q15 1Q17 2Q18 3Q19 4Q20 1Q22 2Q23 3Q24 2019 2020 2021
Slide 19: Strong investment grade credit ratings
Strong investment grade credit ratings A regular issuer in key debt capital markets globally Aa1 / P-1 AA– / A-1+ AA– / F1+ CNY Add Tier 1 (Baa1; BBB-; SGD BBB+)1 4% 11% 11% AUD Covered Debt Class 28% Tier 2 Currency (Aaa; 32% AAA, 14% (A2; GBP 12% NR)1 BBB+; A)1 20% Senior 25% USD (Aa1; AA-, EUR 43
Slide 20: Why UOB?
Why UOB? Stable Integrated regional Strong Balance growth management platform fundamentals with stability • Proven track record • Truly regional bank • Strong Common Equity • More than half of Group’s in steering the bank with full ownership and Tier 1 capital adequacy earnings from home through var
Slide 21: Appendix A. Macroeconomic Outlook
Appendix A. Macroeconomic Outlook 21
Slide 22: ASEAN economies to remain resilient in 2025
ASEAN economies to remain resilient in 2025 External trade stays on positive trajectory 2023 GDP growth ASEAN6: Trade Performance (12-month moving average) 2024 GDP growth +5.2 +5.0 40 +4.3 2025F GDP growth 20 0 China -20 +7.1+7.0 Jan-11 Jan-13 Jan-15 Jan-17 Jan-19 Jan-21 Jan-23 Jan-25 +5.1 ASEAN 6
Slide 23: Expecting only one 25-bps Fed rate cut in 2025 with risk of a more prolonged pause
Expecting only one 25-bps Fed rate cut in 2025 with risk of a more prolonged pause 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25F 2Q25F 3Q25F 4Q25F US 10-Year Treasury 3.47 3.84 4.57 3.88 4.20 4.40 3.78 4.57 4.60 4.50 4.40 4.40 US Fed Funds 5.00 5.25 5.50 5.50 5.50 5.50 5.00 4.50 4.50 4.25 4.25 4.25
Slide 24: Macro resilience across key Southeast Asian markets
Macro resilience across key Southeast Asian markets Significantly Higher Foreign Reserves (USD billion) Improved Current Account Balances (% of GDP) 376 19.8 242 15.6 156 116 75 30 24 26 1.5 1.4 Singapore Thailand Indonesia Malaysia –2.0 –1.5 –0.2 –5.4 Singapore Malaysia Thailand Indonesia Dec 1998
Slide 25: Singapore has implemented Basel IV
Singapore has implemented Basel IV5 Year ’13 ’14 ’15 ’16 ’17 ’18 ’19 ’20 ’21 ’22 ’23 ’24 ’25 ’26 ’27 Basel III capital ratios Phased-in Full IFRS 9 | Start LCR1 Phased-in Full NSFR2 | Start SACCR3 | Start date (pending) TLAC4 Phased-in Full Basel IV5 Phased-in -- MCRMR6 | Start -- Leverage ratio Dis
Slide 26: Capital adequacy rules across the region
Capital adequacy rules across the region BCBS Singapore Malaysia Thailand Indonesia Minimum CET1 CAR 4.5% 6.5%1 4.5% 4.5% 4.5% Minimum Tier 1 CAR 6.0% 8.0%1 6.0% 6.0% 6.0% Minimum Total CAR 8.0% 10.0%1 8.0% 8.5% 8.0% Capital Conservation Buffer 2.5% 2.5% 2.5% 2.5% 2.5% Countercyclical Buffer 2 n/a 0
Slide 27: Appendix B. Sustainable Development
Appendix B. Sustainable Development 27
Slide 28: UOB's responsible financing journey: pragmatic and progressive
UOB’s responsible financing journey: pragmatic and progressive Establishing Improving Strengthening 2015 – 2016 2017 – 2018 2019 – 2022 2023 – 2024 • Launched the Group • Enhanced ESG • Announced our net zero commitment. • Completed the design of a net zero Responsible Financing monitoring and Stren
Slide 29: TCFD Implementation - Climate Scenario Analysis
TCFD Implementation - Climate Scenario Analysis Qualitative Transition Risk Transition Risk Scenario Physical Risk Pilot Analysis Improved Methodology Assessment Analysis Pilot 2019 2020 2021 2022-2024 • Completed qualitative • Partnered an • Conducted a pilot physical risk analysis • Developed an i
Slide 30: Net zero by 2050 commitment with a focus on 6 priority sectors
In October 2022, we announced our commitment to achieving net zero by 2050, with a focus on 6 priority sectors Energy Built environment Net zero targets and commitments for six sectors We focused on two significant, high-emitting ecosystems, energy and built environment, spanning 6 sectors based on:
Slide 31: 2 years on, progressing across all priority sectors
2 years on, we are progressing across all priority sectors, and are trending below the reference pathways 31
Slide 32: Appendix C. Growth Drivers
Appendix C. Growth Drivers 32 ## RESTRICTED ##
Slide 33: Our growth drivers
Our growth drivers Realise potential of Sharpen regional Reinforce fee Long-term growth our integrated focus income growth perspective platform • Provides us with ability • Global macro • Grow fee income to • Disciplined approach in to serve expanding environment remains offset competitive executing
Slide 34: Southeast Asia's immense long-term potential
Southeast Asia’s immense long-term potential Population GDP1 Southeast Asia’s immense … that UOB is uniquely growth prospects… placed to capture (Million persons) (USD trillion) ▪ Third largest population ▪ Most diverse regional globally, after China and franchise among Singapore India banks 685 723
Slide 35: Strong retail presence in high potential regional markets
Strong retail presence in high potential regional markets High Vietnam 8 2022 retail banking pool sizes 4 Philippines USD b Denotes UOB’s core markets in Southeast Asia Banking penetration Indonesia ✓ ✓ was launched growth potential ✓ in Thailand, 14 Indonesia, Singapore and Malaysia. ✓ 14 Thailand
Slide 36: Revenue potential from 'connecting the dots' in the region
Revenue potential from ‘connecting the dots’ in the region Industry’s potential connectivity revenue Industry’s potential connectivity revenue (2026) (SGD b) c$79b CAGR (SGD b) Thailand Vietnam c$23b c$1b c$2b c$59b +10% Singapore c$4b c$15b Malaysia c$13b +10% c$4b Hong Kong Wealth c$8b c$5b Others
Slide 37: 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 $'m +19% +12% +30% increase1 in CASA pickup1 in card growth1 in wealth Gro
Slide 38: Appendix D. Latest Financials
Appendix D. Latest Financials 38 ## RESTRICTED ##
Slide 39: 4Q24 financial overview
4Q24 financial overview Core Net Profit After Tax Movement, 4Q24 vs 3Q24 1 (SGD m) 9 63 301 152 32 77 15 1 1 1,639 1,540 -6% –0% –10% –40% –2% –25% +61% –46% 3Q24 core net Net interest Net fee and Other non- Operating Total Share of profit Tax, 4Q24 core net profit after tax income commission intere
Slide 40: FY24 financial overview
FY24 financial overview Core Net Profit After Tax Movement, FY24 vs FY23 (SGD m) 1 5 160 205 296 5 29 84 1 1 6,060 6,233 +3% –0% +7% +10% +5% +1% +31% –7% FY23 core net Net interest Net fee and Other non- Operating Total Share of profit Tax, FY24 core net profit after tax income commission interest
Slide 41: NII stable QoQ as asset growth offset impact from interest rate cuts
NII stable QoQ as asset growth offset impact from interest rate cuts 2.60 2.50 Loan Margin (%) 2.55 2.47 2.51 2.56 2.48 Net Interest Margin (%) 2.09 2.03 2.02 2.02 2.05 2.05 2.00 Interbank & Securities Margin (%) 1.02 1.05 1.11 1.10 0.98 1.01 0% 0.94 9,679 9,674 NII from Interbank & Securities 1,529
Slide 42: 4Q24 fees eased from last quarter high
4Q24 fees eased from last quarter high alongside seasonally softer quarter for loan-related and wealth activities Fee Income +11% 3,156 2,839 362 Others ($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 43: 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 44: 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 45: Asset quality remained resilient with NPL ratio stable at 1.5%
Asset quality remained resilient with NPL ratio stable at 1.5% ($m) 4Q23 1Q24 2Q24 3Q24 4Q24 NPAs at start of period 5,011 4,946 5,051 4,952 5,055 Non-individuals New NPAs _ 389 249 438 212 514 Less: Upgrades and recoveries 288 183 289 190 35 Write-offs 218 34 238 71 293 4,894 4,979 4,962 4,903 5,24
Slide 46: Total credit costs within guidance
Total credit costs within guidance 32 52 Total credit costs (bps) 25 36 Specific credit costs (bps) 27 25 26 23 24 873 34 25 25 20 21 784 807 1,063 Specific allowance on loans ($m) 212 281 202 186 194 439 28 25 296 212 158 169 (24) (9) (15) General allowance on loans ($m) (190) (227) 2023 2024 4Q23
Slide 47: Provision coverage remains adequate
Provision coverage remains adequate 33 32 32 32 32 Specific allowance/NPA (%) General allowance on loans include 0.9 0.9 0.9 0.9 0.8 RLAR/Performing loans (%) 4,976 4,993 4,851 5,026 4,764 RLAR ($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 48: 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 49: 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 50: Right By You
@ Right By You
United Overseas Bank — Debt Investor Presentation (March 2025) on 6ix