United Overseas Bank Limited · SGX:U11

United Overseas Bank — Q1 2021 Earnings Presentation

22 slides from United Overseas Bank's earnings presentation, Mar 31, 2021

  1. Slide 1: UOB Group Financial Updates

    UOB Group Financial Updates Lee Wai Fai Group Chief Financial Officer For the First Quarter Ended 31 March 2021 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 presentation. It is i

  2. Slide 2: Financial Highlights

    Financial Highlights 1Q21 key financial indicators 1Q21 NPAT up 46% QoQ driven by broad-based growth Operating profit Net profit after tax with record fees; ROE improved to 10.2% $1.4b $1.0b + 16% QoQ + 46% QoQ + 6% YoY + 18% YoY Balance sheet remained resilient supported by strong liquidity, capita

  3. Slide 3: Performance by Segment

    Performance by Operating Profit 1Q21 1Q20 YoY Segment $m $m +/(-)%  Strong franchise growth supported by Group Retail 568 556 2 improvement in economic and business activities  Retail driven by wealth Group Wholesale Banking 804 740 9 with record income and AUM while Wholesale saw good momentum in

  4. Slide 4: Wholesale customers

    Strengthening 29%1 Cross border income to Connectivity Group Wholesale Banking income 5 7% YoY2 Wholesale Across our ASEAN footprint and global network +8%2 customers Non-Singapore income  Growing regional Sector +10%2 franchise, capturing Specialisation Financials sector income cross-border Buildi

  5. Slide 5: Consumers

    Omni-channel S$136b1,2 Assets under management (AUM) Experience 510% YoY3 Serving affluent customers Consumers across various touchpoints +5%pt4 Increase in digitally-engaged customers5  Tapping on rising 314k1 Customers across affluence in Digital Bank: Thailand and Indonesia Southeast Asia TMRW (

  6. Slide 6: Performance by Geography

    1Q21 4Q20 QoQ 1Q20 YoY Operating Profit $m $m +/(-)% $m +/(-)% Performance by Singapore 724 651 11 713 2 Geography Rest of Southeast Asia 342 307 12 345 (1) Malaysia 182 164 11 195 (7) Thailand 101 94 7 93 9  Overseas contribution grew to 48% with Indonesia 59 51 16 45 32 China’s economic Vietnam (

  7. Slide 7: Financial Highlights

    Financial Highlights 1Q21 4Q20 QoQ 1Q20 YoY $m $m +/(-)% $m +/(-)%  Quarterly earnings up Net interest income 1,529 1,512 1 1,593 (4) 46% with notable performance in fees, Net fee income 638 522 22 515 24 trading & investment Others 319 214 49 298 7 income as business momentum improved Total income

  8. Slide 8: Net Interest Income and Margin

    2.16 1.91 2.08 1.87 1.83 1.87 1.90 Net Interest Income 1.78 1.57 1.71 and Margin 1.48 1.53 1.57 1.57 0.78 0.71 0.76 0.76 0.78 0.75 0.56 6,563  NIM stable at 1.57% 784 6,035 778  NII increased 1% driven 1,593 largely from loan growth 1,456 1,474 1,512 1,529 196 208 207 and improvement in loan 164 2

  9. Slide 9: Fee Income

    26 23 23 20 22 21 20 Fee Income  Fees income grew 22% 638 QoQ and 24% YoY on the 2,032 1,997 103 strength of wealth 366 515 522 367 514 management and loan- 40 170 134 97 445 86 104 related fees 15 80 46 49 239  Strong momentum in 641 710 24 201 188 wealth management fees 133 188 boosted by pick-u

  10. Slide 10: Trading & Investment Income

    55 46 72 63 57 57 Trading & Investment 37 1,116 Income 294 880 246  T&I income improved 62% 605 224 QoQ from stronger 210 400 185 customer flows, trading 83 105 income and higher gains 90 152 from investment securities 42 511 480 140 141 109 121 110 2019 2020 1Q 2Q 3Q 4Q 1Q 2020 2021 Customer Relat

  11. Slide 11: Expenses and Cost / Income Ratio

    44.6 45.6 46.0 46.7 Expenses and 45.1 44.6 43.8 Cost / Income Ratio 13% 12% 11%  Continued efforts to 14% 12% 15% 13% 12% 13% balance strategic 14% 12% 14% 12% 14% 15% 15% investments in people and 13% 14% 14% 14% 12% technology to enhance 61% 60% digital and product 62% 60% 59% 58% 62% capabilitie

  12. Slide 12: Non-Performing Assets

    2020 2021 ($m) 1Q 2Q 3Q 4Q 1Q Non-Performing NPAs at start of period 4,297 4,590 4,628 4,301 4,608 Assets Non-individuals New NPAs _ 573 131 74 622 145 Less:  Lower NPA formation Upgrades and recoveries 101 126 216 175 250 this quarter, NPL ratio Write-offs 208 42 63 179 26 stable at 1.5% 4,561 4,5

  13. Slide 13: Total Allowance on Loans

    67 68 57 55 18 Total Allowance on 36 29 Loans 17 24 1,579 34 31 19 13 10  Credit costs eased to 468 476 29bps as outlook stabilises 900 391  Lower allowance for 342 150 impaired loans due to 244 378 503 30 207 payment recoveries and 34 lower NPL formation this 679 241 136 469 214 quarter 90 134 71

  14. Slide 14: Allowance Coverage

    39 37 37 36 36 1.0 1.0 1.0 0.9 Allowance Coverage 0.8 4,944 5,075 4,755 379 4,434 379 379 4,032 379 374  Strong reserve buffer with 2,712 2,873 3,003 1,988 2,391 coverage for performing loans at 1% 1,670 1,664 1,664 1,692 1,693  NPA coverage strengthened to 112% or Mar Jun Sep Dec Mar 257% taking

  15. Slide 15: Gross Loans

    Mar-21 Dec-20 Mar-20 QoQ YoY Gross Loans $b $b $b +/(-)% +/(-)% Singapore 151 143 141 5 7 Rest of Southeast Asia 63 63 63 (0) 0  Steady growth of 4% Malaysia 30 30 30 0 0 QoQ mainly from term Thailand 20 21 20 (2) 3 and trade loans in Indonesia 10 10 11 (1) (6) Singapore and North Vietnam 2 2 2 9 6

  16. Slide 16: Total Funding

    Mar-21 Dec-20 Mar-20 QoQ YoY Total Funding $b $b $b +/(-)% +/(-)% Singapore 226 221 216 2 5 Rest of Southeast Asia 64 67 62 (3) 3 Malaysia 30 31 30 (4) 0 Thailand 21 23 22 (7) (2)  Continue to focus on Indonesia 9 9 7 6 28 stable funding; CASA Vietnam 3 3 3 (0) 6 ratio stable at 53.5% Others 0 0 0

  17. Slide 17: Liquidity ratios

    Liquidity ratios 139 136 139 139 127 109 122 125 119 121  Ample liquidity with LCR at 139% and 85.4 85.8 86.7 85.4 87.0 NSFR at 121% Mar Jun Sep Dec Mar 2020 2021 USD LDR (%) 62.7 59.6 58.0 58.2 62.5 All-currency LCR (%) Loan/Deposit Ratio (LDR) (%) Net Stable Fund Ratio (NSFR) (%) 17

  18. Slide 18: Capital

    Capital 14.1 14.0 14.0 14.7 14.3  Strong capital position with CET1 ratio at 232 232 231 225 236 14.3%  Higher RWA in line with corporate loan growth Mar Jun Sep Dec Mar 2020 2021 Leverage ratio (%) 7.4 7.3 7.4 7.4 7.5 RWA ($b) CET1 ratio (%) 18

  19. Slide 19: Appendix

     Loan portfolio Appendix  Exposure to Greater China  Exposure to Oil & Gas sector 19

  20. Slide 20: Diversified Loan portfolio

    Professionals and Housing loans private individuals 24% Others 9% 6% Transport, storage and General commerce Industry communication 13% 4% Diversified Building & Loan portfolio FIs, investment and construction holding companies 25% 11% Manufacturing 8% Large corporates Others 11% Singapore and 51% i

  21. Slide 21: Exposure to Greater China

    Exposure to Greater China 77.2 73.5 69.2 68.3 71.8 6.2 6.2 6.1 6.5 7.3 Debt ($b) 45.1 44.1 44.1 44.2 47.2 Non Bank ($b) Bank ($b) 25.9 23.2 19.0 17.6 17.3 Mar Jun Sep Dec Mar 2020 2021 As at 31 Mar 2021: Mainland China exposure ($25.8b or 6% of total assets) Hong Kong SAR exposure ($37.8b or 9% of t

  22. Slide 22: Exposure to Oil and Gas (O&G) Sector

    Exposure to Oil and Gas (O&G) Sector Total Outstanding O&G Loans ($b) As of 31 March 2021, outstanding O&G loans represented 4% of total loans as compared with 4.7% at 30 June 2018 11.8 10.8 3.7 Approximately 80% of O&G exposure is to downstream players and 4.3 traders, which are mainly national oil

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