United Overseas Bank Limited · SGX:U11
United Overseas Bank — Q1 2016 Earnings Presentation
17 slides from United Overseas Bank's earnings presentation, Apr 28, 2016
Slide 1: UOB Group 1st Quarter 2016 Financial Highlights
UOB Group 1st Quarter 2016 Financial Highlights Lee Wai Fai Group Chief Financial Officer 28 April 2016 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 summary
Slide 2: 1Q16 NPAT of $766 million, down 4% YoY and 3% QoQ
1Q16 NPAT of $766 million, down 4% YoY and 3% QoQ 1Q16 1Q15 +/(-) 4Q15 +/(-) $m $m % $m % Net interest income 1,275 1,201 6.1 1,277 (0.2) Fee and commission income 433 453 (4.5) 480 (9.8) Other non-interest income 262 301 (13.1) 323 (19.0) Total income 1,969 1,956 0.7 2,081 (5.4) Les
Slide 3: NII Rose 6% YoY on Loan Growth
NII Rose 6% YoY on Loan Growth Net Interest Income (NII) and Margin 2.19% 2.26% 2.34% 2.36% 2.12% 2.26% 2.36% 2.27% 2.06% 1.72% 1.71% 1.77% 1.78% 1.76% 1.77% 1.77% 1.79% 1.78% 0.76% 0.82% 0.50% 0.30% 0.65% 0.50% 0.46% 0.40% 0.30% 4,926 4,558 391 1,235 1,277 1,275 4,120 1,201 1,213 620 81 60 537 126
Slide 4: Non-Interest Income Decreased on Lower Wealth Management and Loan Fees and T&I Income
Non-Interest Income Decreased on Lower Wealth Management and Loan Fees and T&I Income Non-Interest Income (Non-NII) and Non-NII Ratio 38.7% 38.9% 38.8% 40.8% 38.6% 37.0% 38.6% 35.3% 35.3% 25.8% 23.5% 23.4% 22.0% 23.2% 24.2% 23.3% 23.1% 22.0% 3,122 2,900 284 2,600 334 850 803 325 755 714 55 954 60 69
Slide 5: Disciplined Cost Management as Expenses are Paced to Revenue
Disciplined Cost Management as Expenses are Paced to Revenue Operating Expenses and Expense / Income Ratio 45.4% 44.7% 45.5% 46.3% 45.4% 43.6% 43.4% 43.1% 43.1% 44.3% 43.4% 42.3% 42.2% 964 ^ 3,597 ^ 877 904 ^ 894 852 3,146^ 2,898 359 376 442 389 1,533 356 1,186 1,321 894 1,825 2,064 496 517 528 522
Slide 6: Total Credit Costs Stable at 32bps
Total Credit Costs Stable at 32bps Allowances on Loans 32bp 32bp 32bp 32bp 32bp 30bp 32bp 32bp 32bp 31bp 25bp 22bp 19bp 25bp 12bp 11bp 8bp 12bp 392 160 133 238 115 136 133 61 56 2013 2014 2015 1Q16 1Q15 2Q15 3Q15 4Q15 1Q16 Specific Allowances on Loans ($m) Specific Allowances on Loans/Average Gross
Slide 7: Performance by Business Segment
Performance by Business Segment 1Q16 GMIM -2% Others -1% 1Q16 1Q15 +/(-) Segment Operating Profit $m $m % Group Retail (GR) 422 369 14.4 39% 64% Group Wholesale Banking (GWB) 685 616 11.2 Global Markets & Investment Mgt (GMIM) (24) 128 (>100.0) 1Q15 Others -1% Others (8) (10) 20.0 12% Total 1,075 1,
Slide 8: Regional Operating Profit Contribution Declined 1% YoY in Constant Currency Terms
Regional Operating Profit Contribution Declined 1% YoY in Constant Currency Terms 1Q16 At 8% constant 6% 4% FX rate +/(-) 7% Operating 1Q16 1Q15 +/(-) 60% Profit $m $m % % 15% Singapore 649 661 (1.8) (1.8) 1Q15 Regional: 339 358 (5.3) (0.7) Malaysia 161 166 (3.2) 5.8 8% Thailand 70 70 0.1 7.1 9% 2%
Slide 9: Loans increased to $209b, up 5% YoY and 1% QoQ in Constant Currency Terms
Loans increased to $209b, up 5% YoY and 1% QoQ in Constant Currency Terms Mar-16 Mar-16 Mar-15 +/(-) Dec-15 +/(-) 9% Gross Loans $b $b % $b % 12% 56% Singapore 117.8 114.5 2.9 116.1 1.5 5% 6% Regional: 72.4 72.5 (0.3) 72.8 (0.7) 12% Malaysia 25.5 25.9 (1.5) 24.6 3.7 Thailand 11.4 11.4 (0.2) 11.5 (0.
Slide 10: Healthy Deposit Growth
Healthy Deposit Growth Mar-16 Customer Mar-16 Mar-15 +/(-) Dec-15 +/(-) 6% 6% Deposits $b $b % $b % 3% 5% Singapore 177.4 159.1 11.5 168.6 5.2 10% 70% Regional: 61.7 61.6 0.3 56.6 9.0 Malaysia 27.0 28.0 (3.8) 25.4 6.3 Thailand 12.2 11.9 2.2 12.1 0.3 Mar-15 Indonesia 6.7 7.1 (6.7) 6.6 0.9 8% 15.9 6%
Slide 11: Stable Liquidity Position
Stable Liquidity Position Customer Loans and Deposits; LDR and LCR 83.4% 82.3% 84.7% 81.6% 80.7% 239.4 241.5 244.6 240.5 254.8 199.7 198.8 199.6 203.6 205.6 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Net Customer Loans ($b) Customer Deposits ($b) Loan/Deposit Ratio (LDR) (%) SGD LDR (%) 94.5 91.9 88.4 91.7
Slide 12: NPL Ratio at 1.4%
NPL Ratio at 1.4% NPL ($m) 2,442 2,504 2,551 2,882 2,841 NPL Ratio 1.2% 1.2% 1.3% 1.4% 1.4% 344 401 351 218 158 377 400 149 166 127 569 564 335 372 313 249 250 289 238 292 386 401 378 388 423 1,046 1,116 1,067 922 931 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Singapore Malaysia Thailand Indonesia Greater C
Slide 13: Exposure to China
Exposure to China Total = SGD19.5b Bank exposure in China or 5.9% of total assets 99% with <1 year tenor Around 75% accounted for by top 5 domestic banks and policy banks Bank, Trade exposures mostly with bank counterparties, SGD10.1b representing around half of bank exposure Debt, Non-bank ex
Slide 14: Exposure to Commodities
Exposure to Commodities Oil and gas As of Traders/ Other commodity Upstream Total 31 Mar 16 downstream segments industries industries Total SGD4.6b SGD8.4b SGD8.8b SGD21.8b exposure1 Outstanding SGD3.8b SGD5.1b SGD6.5b SGD15.5b loans 4% of total loans 7% of total loans Total exposure, including of
Slide 15: Strong Allowances Coverage
Strong Allowances Coverage Total Loan Allowances 3,589 3,609 3,640 3,760 3,783 ($m) 362.5% 340.5% 345.4% 315.7% 325.3% 147.0% 144.1% 142.7% 130.5% 133.2% 712 773 751 699 747 2,890 2,862 2,928 2,987 3,032 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 General Allowances ($m) Specific Allowances ($m) Total Allowa
Slide 16: Capital Ratios Remained Strong
Capital Ratios Remained Strong Capital Adequacy Ratios (CAR) Total CAR 17.1% 16.8% 16.4% 16.0% 15.6% 2.8% 2.8% Tier 2 CAR 2.8% 3.2% 2.6% 14.3% 14.0% 13.6% 13.0% Tier 1 / CET 1 CAR 12.8% Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 CET1 Capital ($b) 26 25 25 26 26 Tier 1 Capital ($b) 26 25 25 26 26 Total Capit
Slide 17: Thank you
iit VOB Thank you ak TI