United Overseas Bank Limited · SGX:U11
United Overseas Bank — Investor Day (August 2024)
33 slides from United Overseas Bank's investor day presentation, Aug 14, 2024
Slide 1: Corporate Day 2024: Building the Future of ASEAN
Corporate Day 2024 Building the Future of ASEAN Capturing Connectivity Flows and Driving Sustainability Adoption 14 August 2024 Kuala Lumpur, Malaysia Private and Confidential
Slide 2: One Bank For ASEAN
One Bank For ASEAN As the One Bank for ASEAN, we focus on sustainable growth by connecting businesses, big and small, to be part of UOB's trade network. UOB is ASEAN’s most extensive trade network backed by a global footprint, coverage, sector expertise and integrated supply chain platform. ## RESTR
Slide 3: We don't bank companies, we bank supply chains
03 We don’t bank companies, we bank supply chains. Our financial support and connections ensure that trade flows seamlessly between suppliers, manufacturers, and distributors, from one end of the supply chain to the other. When businesses big and small become a part of ASEAN's most extensive network
Slide 4: Our Ambition: #1 Cross-Border Trade Bank in ASEAN
Our #1 Cross-Border Trade Bank in ASEAN Ambition Strategic Banking supply chains with and within ASEAN, Focus Greater China and beyond Through Connectivity Sustainability 4 ## RESTRICTED ##
Slide 5: Connectivity
Connectivity 5 ## RESTRICTED ##
Slide 6: ASEAN trade flows have grown faster than global trade
ASEAN trade flows have grown faster than global trade 2020 vs. 2023: Trade flows between economic blocs • Total trade between key US$b economic blocs rose significantly US$b 2020 2023 change % change (+27%) from 2020 to 2023 Intra-ASEAN 567 759 192 34% China-ASEAN 519 697 178 34% US-ASEAN 309 396 87
Slide 7: Global geopolitical and economic trends offer ASEAN numerous opportunities
Global geopolitical and economic trends offer ASEAN numerous opportunities ASEAN benefits from decoupling of China and US We aim to become the No.1 trade bank in ASEAN % Share of US Trade % Share of China Trade % total trade (import + export) % total trade (import + export) 16 16 +1.4% 15 -2.1% US$2
Slide 8: UOB is well-placed to capture opportunities from inward FDI flows
UOB is well-placed to capture opportunities from inward FDI flows 2020 vs. 2023: FDI inflows into ASEAN • US$229.8b of inward FDI US$b 2020 2023 flows into ASEAN in 2023 Singapore 74.9 159.6 Indonesia 18.6 21.6 • >90% of inward ASEAN FDI Vietnam 15.8 18.5 flows into UOB’s key markets of Philippines
Slide 9: Riding on mega sector trends
Riding on mega sector trends 9 ## RESTRICTED ##
Slide 10: Building our GWB capabilities to capture megatrends
Building our GWB capabilities to capture megatrends Drive ASEAN franchise Sector diversification – Ride on Megatrends US$2tn trade flow in ASEAN Shift of value chain China +1 strategy Connectivity & Sustainability focus to capture trade & investments Widen & deepen Reshape & scale our wallet share S
Slide 11: Momentum building up as platform was gradually rolled out
Momentum building up as platform was gradually rolled out Our major platforms are rolled out in UOB key markets A digital banking platform that manages your cash flows efficiently with real-time account +11%pt +49% since 2020 since 2020 information and supports a comprehensive range of payments and
Slide 12: Early wins as our strategy takes shape
Early wins as our strategy takes shape Transaction banking now CASA deposits now make up Healthy loan & trade related contributes to 54% of 2023 51% of 2023 GWB deposits fee growth GWB Revenue (2020: 38%) (2020: 41%) GWB revenue GWB average deposits Loan & trade related fees +14% CAGR +10% CASA CAGR
Slide 13: Significant improvement in customer rankings within ASEAN
Coverage Cash Trade Finance Management Significant 1st 2nd 1st improvement in customer rankings 9th 8th 9th within ASEAN 2017 2023 2017 2023 2017 2023 Source: Coalition Greenwich Voice of Client - 2017 and 2023 Asian Large Corporate Banking, Cash Management and Trade Finance Studies Ranking is based
Slide 14: Case studies
Case studies 14 ## RESTRICTED ##
Slide 15: Trade flow in ASEAN & China +1 Strategy
Trade flow in ASEAN & China +1 Strategy The world’s largest ARP China PC company with a Domestic Major distributor pocket-to cloud portfolio of AI-enabled, AI-ready ARP and AI-optimized Taiwan devices, infrastructure, Major EMS/ ODM Partners software, solutions, HK and services Buy-Sell hub SF SF SF
Slide 16: North Asian contract manufacturer expands its business footprint into ASEAN
North Asian contract manufacturer expands its business footprint into ASEAN as part of their China-plus strategy with aim to strengthen their supply chain resilience and create value to their customers. China Taiwan • Manufacturing bases in • HQ and R&D Kunshan, Chengdu, center. Chongqing. • Trade,
Slide 17: The journey ahead
The journey ahead 17
Slide 18: We aim to be the top cross-border trade bank in ASEAN
We aim to be the top cross-border trade bank in ASEAN GWB Income GWB Loans of WB income of WB loans from 49% ~25% from ASEAN4 (2023: 21%) 49% ~20% ASEAN4 (2023: 15%) 55% Cross-border income 52% Trade loans as % 25% ~30% as % of WB income (2023: 25%) 18% ~20% of WB loans (2023: 13%) 21% 14% Sustain W
Slide 19: We connect companies directly to the source of goods
Banking ASEAN’s Supply Chains We connect companies directly to the source of goods. Direct access to goods allows companies to better manage and streamline their supply chains. Our presence in ASEAN provides an extensive network that connects companies end-to-end and builds sustainable business for
Slide 20: Sustainability
Sustainability 20 ## RESTRICTED ##
Slide 21: Southeast Asia plays a critical role in global climate action and decarbonization
Southeast Asia plays a critical role in global climate action and decarbonization Major contributor to global GHG emissions, investment opportunity to fund with many levers ready to drive impactful $1.5tn Southeast Asia’s transition by 2030, decarbonization which translates to.. largest energy Power
Slide 22: Enterprises believe sustainability is important, however most have not adopted practices
Enterprises in the region believe sustainability is important, however most have not adopted sustainable practices1 Disconnect on importance of sustainability Key barriers to sustainability for enterprises1 & actual adoption1 Insufficient knowledge to identify and execute the right initiatives Incre
Slide 23: Driving the ASEAN franchise through industry firsts, frameworks and innovative solutions
Driving the ASEAN franchise through industry firsts, frameworks and innovative solutions 23 ## RESTRICTED ##
Slide 24: Our ESG Approach: Solution innovation & collaboration to scale adoption
Our ESG Approach: Solution innovation & collaboration to scale adoption across industries Commercial collaboration with key industry players Partnerships to scale • National commitments & priorities • Industry transformation roadmaps, policies and programs National & Regional • Singapore & regional
Slide 25: Simplifying ESG with Sector-specific Sustainable Finance Frameworks
UOB Sustainability Foundations Simplifying ESG with Sector-specific Sustainable Finance Frameworks We are currently aligning our frameworks to the SG-Asia Taxonomy for Sustainable Finance Green Building Sustainability Food and Circular Sustainable Transition Developers Smart City -Linked Agribusines
Slide 26: Simplifying the Sustainability journey with dedicated sector specialists
UOB Sustainability Foundations Simplifying the Sustainability journey with dedicated sector specialists across industries: Packaging UOB Sustainable Finance & Partners Commercial Solutions for SMEs In partnership with: U-Solar U-Build ASEAN’s award- Real estate winning one-stop green loans & solar e
Slide 27: Our GWB Sustainable Finance Portfolio as it takes shape
Our GWB Sustainable Finance Portfolio as it takes shape • Sustainable finance is 21% 1 of overall GWB portfolio SGD billion 50 • Diversified geographic composition across developed & developing economies: 81% Greater Rest of YOY SG MY, ID, TH, VN (ASEAN excl. SG) China World Sustainable loans as of
Slide 28: Strong growth across our Sustainable Banking Solutions
Strong growth across our Sustainable Banking Solutions SGD bn1 Loans Trade Deposits +46% +177% +24% CAGR CAGR CAGR 44 7 39 5 4 4 Launched 3 23 in Jul22 17 2 1 FY21 FY22 FY23 1H24 FY21 FY22 FY23 1H24 FY22 FY23 1H24 Note: 1. Loans: Total Sustainable Financing (Cumulative) which was the reported method
Slide 29: We are leading the way in guiding customers on their sustainability journeys
We are leading the way in guiding customers on their sustainability journeys “Most Active” in engaging ESG awards across customers on Sustainability our core markets 76% 6% The Asset The Asset Triple Triple A Sustainable 51% Triple A ESG A Awards Infrastructure Commercial 39% Corporate U-Solar Renew
Slide 30: ESG Showcase
ESG Showcase 30 ## RESTRICTED ##
Slide 31: GEN AI will drive demand for Green Digital Infrastructure across APAC
GEN AI will drive demand for Green Digital Infrastructure across APAC Asia’s leading (Warburg Pincus backed) data centre developer and operator with >700 MW across 21 data centres in APAC PDG’s Four Pillars of Sustainability Landmark US$280mn Green Loan for PDG’s AI-Ready Data Centre Campus In Johor
Slide 32: One Bank for ASEAN
One Bank for ASEAN. Best Bank in Asia Pacific World’s Best Bank for SMEs • UOB banks the fifth-largest economy and the world’s fastest-growing trade bloc – ASEAN • Commended for strength in the Bank’s clear strategy and focus on ASEAN, whilst having an international presence globally • Has one of th
Slide 33: Right By You
@ Right By You