United Overseas Bank Limited · SGX:U11

United Overseas Bank — FY2005 Earnings Presentation

16 slides from United Overseas Bank's earnings presentation, Feb 23, 2006

  1. Slide 1: UOB Group Full Year / Fourth Quarter 2005 Results Briefing

    UOB Group Full Year / Fourth Quarter 2005 Results Briefing FINANCIAL HIGHLIGHTS Lee Wai Fai Chief Financial Officer 23 February 2006 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

  2. Slide 2: Agenda

    Agenda 11 Review Review of of Financial Financial Performance Performance 22 Business Business & & Geographical Geographical Segments Segments 33 Loans, Loans, Deposits Deposits & & Asset Asset Quality Quality 44 Capital Capital Management Management 2

  3. Slide 3: Profit Growth of 17.7% Achieved in 2005

    Profit Growth of 17.7% Achieved in 2005 2005 2004 Incr / (Decr) $m $m $m % Net Interest Income 2,348 2,155 193 8.9 Non-Interest Income 1,414 1,104 310 28.1 Total Income 3,761 3,259 502 15.4 Less : Operating Expenses 1,424 1,227 197 16.1 Operating Profit * 2,337 2,032 305 15.0 Less : Intangible Asset

  4. Slide 4: Higher Operating Profit in 4Q05

    Higher Operating Profit in 4Q05 4Q05 3Q05 + / (-) 4Q04 + / (-) $m $m % $m % Net Interest Income 614 578 6.2 562 9.1 Non-Interest Income 414 350 18.4 298 39.1 Total Income 1,028 927 10.8 860 19.5 Less : Operating Expenses 404 353 14.4 364 11.0 Operating Profit * 623 574 8.6 496 25.7 Less : Intangible

  5. Slide 5: Higher Net Interest Income and Loan Margin

    Higher Net Interest Income and Loan Margin Net Interest Income and Margin 3.12% 3.13% 3.01% 3.18% 3.24% 3.12% 3.21% 2.99% 3.08% 2.22% 2.25% 2.10% 1.99% 2.06% 2.05% 1.93% 1.96% 1.97% 2,348 2,128 2,071 2,155 562 583 578 614 574 2002 2003 2004 2005 4Q04 1Q05 2Q05 3Q05 4Q05 Net NetInterest InterestIncom

  6. Slide 6: Non-Interest Income Up 28.1% against 2004

    Non-Interest Income Up 28.1% against 2004 Non-Interest Income (Non-NII) and Non-NII Ratio 40.3% 37.7% 37.6% 36.8% 34.5% 33.9% 34.6% 35.2% 414 29.9% 1,414 334 350 316 121 298 1,089 1,104 115 514 906 148 93 131 398 501 406 293 900 234 706 204 186 186 501 588 2002 2003 2004 2005 4Q04 1Q05 2Q05 3Q05 4Q0

  7. Slide 7: Stable Operating Expenses

    Stable Operating Expenses Operating Expenses and Expense / Income Ratio 37.6% 37.9% 35.4% 34.7% 42.3% 38.3% 38.1% 39.3% 1,424 35.5% 1,227 222 1,074 1,095 404 188 364 347 353 60 199 199 319 56 56 55 52 2002 2003 2004 2005 4Q04 1Q05 2Q05 3Q05 4Q05 Operating OperatingExpenses Expenses($m) ($m) IT ITExp

  8. Slide 8: Individual Impairment Charges on Loans

    Individual Impairment Charges on Loans Individual Impairment on Loans Charged to Profit & Loss Account 48 bp 68 bp 41 bp 40 bp 55 bp 36 bp 35 bp 31 bp 422 345 9 bp 235 215 81 60 70 70 16 2002 2003 2004 2005 4Q04 1Q05 2Q05 3Q05 4Q05 Individual IndividualImpairment ImpairmentCharges Charges Individual

  9. Slide 9: Profit Contribution by Business Segment

    Profit Contribution by Business Segment Business Segment 2005 2004 Incr/(Decr) 2005 2005 Institutional : 47% Segment Pre-tax Profit * $m $m % Individual : 25 % Other : 9 % Individual Financial Services 548 503 8.9 Asset Management : 5 % Institutional Financial Services 1,034 791 30.7 Global Treasury

  10. Slide 10: Higher Operating Profit Contribution From Overseas Operations

    Higher Operating Profit Contribution From Overseas Operations Geographical Segment 2005 2005 2005 2004 Incr/(Decr) Operating Profit * $m $m % Singapore : 73% Singapore (including ACU) 1,706 1,522 12.1 ASEAN : 17% Other ASEAN countries 409 317 29.0 Asia-Pacific : 4% Rest of the world : 6% Other Asia-

  11. Slide 11: Measured Growth in Loans and Deposits

    Measured Growth in Loans and Deposits Customer Loans, Deposits and L/D Ratio 81.4 % 80.1 % 80.3 % 78.9 % 78.5 % 79.0 80.5 83.3 85.5 80.1 64.3 64.1 64.6 65.7 67.1 Dec'04 Mar'05 Jun'05 Sep'05 Dec'05 Net NetCustomer CustomerLoans Loans*($b) *($b) Customer CustomerDeposits Deposits($b) ($b) Loans Loans/

  12. Slide 12: Decrease in NPLs across Major Countries

    Decrease in NPLs across Major Countries Group: NPLs ($m) 5,484 4,728 4,563 4,290 3,931 NPL Ratio 8.0% 6.9% 6.7% 6.2% 5.6% 492 1,170 414 379 372 1,099 1,045 419 873 973 906 682 679 717 651 2,949 2,533 2,460 2,228 1,955 Dec'04 Mar'05 Jun'05 Sep'05 Dec'05 Singapore Malaysia Thailand Other 12

  13. Slide 13: Impairment Coverage Remains Strong

    Impairment Coverage Remains Strong Total Impairment 3,724 3,267 3,110 2,946 2,714 ($m) 67.9% 69.1% 68.2% 68.7% 69.0% 2,354 1,895 1,794 1,628 1,444 1,370 1,372 1,316 1,318 1,270 Dec'04 Mar'05 Jun'05 Sep'05 Dec'05 Collective CollectiveImpairment Impairment($m) ($m) Individual IndividualImpairment Impa

  14. Slide 14: Strong Capital Position

    Strong Capital Position Capital Adequacy Ratios (CAR) 15.6% 16.1% 15.4% 15.0% 15.0% ` 11.0% 10.9% 11.0% 10.1% 9.9% Dec'04 Mar'05 Jun'05 Sep'05 Dec'05 Total TotalCAR CAR Tier Tier11CAR CAR 14

  15. Slide 15: Higher Dividends

    Higher Dividends Dividend in 28.5 cts Specie Final 18.8 cts 40 cts 40 cts 40 cts Interim 25 cts 15 cts 20 cts 20 cts 20 cts 2002 2003 2004 2005 Dividend in Specie $230m - - $351m Cash Dividend $490m $748m $744m $738m Share Buy-back - - $500m - Total Utilization $720m $748m $1,244m $1,089m of Profit

  16. Slide 16: In Summary …

    In Summary … ƒ Net profit grew 17.7% to reach $1,709 million in 2005 ƒ ROE increased to 12.9% in 2005 from 12.4% in 2004 ƒ Expense-to-income ratio is under control at 37.9% in 2005 ƒ NPL ratio improved to 5.6% in 2005 from 8.0% in 2004 ƒ Dividend payout is 88.5 cents per share 16

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