United Overseas Bank Limited · SGX:U11

United Overseas Bank — FY2015 Earnings Presentation

29 slides from United Overseas Bank's earnings presentation, Feb 16, 2016

  1. Slide 1: UOB Group Full Year 2015 Financial Highlights

    UOB Group Full Year 2015 Financial Highlights Lee Wai Fai Group Chief Financial Officer 16 February 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

  2. Slide 2: 2015 NPAT of $3.21 billion, down 1% YoY

    2015 NPAT of $3.21 billion, down 1% YoY 2015 2014 +/(-) $m $m % Net interest income 4,926 4,558 8.1  Fee and commission income 1,883 1,749 7.7  Other non-interest income 1,238 1,151 7.6  Total income 8,048 7,457 7.9  Less: Total expenses 1 3,597 3,146 14.3  Operating profit 4,451 4,311 3.2  Le

  3. Slide 3: 4Q15 NPAT of $788 million, up 0.3% YoY but down 8% QoQ

    4Q15 NPAT of $788 million, up 0.3% YoY but down 8% QoQ 4Q15 4Q14 +/(-) 3Q15 +/(-) $m $m % $m % Net interest income 1,277 1,168 9.3  1,235 3.4  Fee and commission income 480 450 6.7  485 (1.0)  Other non-interest income 323 232 39.4  365 (11.5)  Total income 2,081 1,850 12.5  2,085 (0.2)  Les

  4. Slide 4: NII Reached New High, Rising 8% YoY and 3% QoQ

    NII Reached New High, Rising 8% YoY and 3% QoQ Net Interest Income (NII) and Margin 2.26% 2.27% 2.34% 2.29% 2.12% 2.26% 2.08% 2.19% 2.06% 1.87% 1.72% 1.71% 1.77% 1.69% 1.76% 1.77% 1.77% 1.79% 0.91% 0.76% 0.82% 0.50% 0.71% 0.65% 0.50% 0.46% 0.40% 1,277 4,926 1,168 1,201 1,213 1,235 4,558 88 81 391 12

  5. Slide 5: Broad-based fee Income Growth and Stronger Treasury Contributions

    Broad-based fee Income Growth and Stronger Treasury Contributions Non-Interest Income (Non-NII) and Non-NII Ratio 39.7% 38.7% 38.9% 38.8% 40.8% 36.8% 38.6% 37.0% 38.6% 25.8% 23.2% 23.5% 23.4% 24.3% 23.2% 24.2% 23.3% 23.1% 3,122 2,900 284 2,578 2,600 334 850 803 397 325 755 714 55 954 682 60 817 77 5

  6. Slide 6: Higher Expenses to Support Growing Franchise

    Higher Expenses to Support Growing Franchise Operating Expenses and Expense / Income Ratio 44.7% 45.5% 46.3% 43.5% 43.6% 43.4% 43.1% 43.1% 44.3% 42.3% 42.3% 43.4% 42.2% 964 ^ 3,597 ^ 877 904 ^ 852 3,146 ^ 805 2,747 2,898 359 376 442 1,533 356 1,321 351 1,151 1,186 1,825 2,064 454 496 517 528 522 1,5

  7. Slide 7: Total Loan Charge Off Rate Stable at 32bps

    Total Loan Charge Off Rate Stable at 32bps Allowances on Loans 32bp 32bp 32bp 32bp 32bp 30bp 30bp 32bp 32bp 31bp 22bp 30bp 14bp 12bp 19bp 11bp 8bp 12bp 160 115 454 392 73 238 61 56 136 2012 2013 2014 2015 4Q14 1Q15 2Q15 3Q15 4Q15 Specific Allowances on Loans ($m) Specific Allowances on Loans/Average

  8. Slide 8: Performance by Business Segment

    Performance by Business Segment 2015 Others -3% 2015 2014 +/(-) 8% Segment Operating Profit $m $m % 1,573 35% Group Retail (GR) 1,384 13.7 60% Group Wholesale Banking (GWB) 2,660 2,349 13.2 Global Markets & Investment Mgt (GMIM) 343 537 (36.1) 2014 1% Others (125) 41 (>100.0) 12% Total 4,451 4,311 3

  9. Slide 9: Overseas Operating Profit Contribution Rose 7% YoY in Constant Currency Terms

    Overseas Operating Profit Contribution Rose 7% YoY in Constant Currency Terms 2015 At 8% constant 8% FX rate 3% Operating 2015 2014 +/(-) +/(-) 6% 61% Profit $m $m % % 14% Singapore 2,694 2,642 2.0 2.0 2014 Regional: 1,407 1,370 2.7 5.1 Malaysia 616 655 (5.9) 3.8 7% Thailand 283 248 14.4 11.7 7% 4%

  10. Slide 10: Loans Increased to $207b, up 5% YoY and 2% QoQ in Constant Currency Terms

    Loans Increased to $207b, up 5% YoY and 2% QoQ in Constant Currency Terms Dec-15 Dec-15 Dec-14 +/(-) Sep-15 +/(-) 9% Gross Loans $b $b % $b % 12% 56% Singapore 116.1 109.7 5.8 114.3 1.6 6% 5% Regional: 72.8 73.0 (0.2) 70.7 3.1 12% Malaysia 24.6 25.8 (4.5) 23.7 4.0 Thailand 11.5 10.8 6.0 11.2 3.0 Dec

  11. Slide 11: Healthy Deposit Growth

    Healthy Deposit Growth Dec-15 Customer Dec-15 Dec-14 +/(-) Sep-15 +/(-) 6% 5% Deposits $b $b % $b % 3% 5% Singapore 168.6 156.2 7.9 169.6 (0.6) 11% 70% Regional: 56.6 61.5 (7.9) 54.9 3.3 Malaysia 25.4 28.5 (10.8) 24.9 1.8 Thailand 12.1 11.3 7.3 11.3 7.0 Dec-14 Indonesia 6.6 6.7 (2.0) 6.2 6.6 7% 6% G

  12. Slide 12: Stable Liquidity Position

    Stable Liquidity Position Customer Loans and Deposits; LDR and LCR 83.8% 83.4% 82.3% 81.6% 84.7% 233.8 239.4 241.5 244.6 240.5 195.9 199.7 198.8 199.6 203.6 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Net Customer Loans ($b) Customer Deposits ($b) Loan/Deposit Ratio (LDR) (%) SGD LDR (%) 93.0 94.5 91.9 88.4

  13. Slide 13: NPL Ratio at 1.4%

    NPL Ratio at 1.4% NPL ($m) 2,358 2,442 2,504 2,551 2,882 NPL Ratio 1.2% 1.2% 1.2% 1.3% 1.4% 344 351 218 377 400 419 166 149 569 127 124 372 313 335 298 249 289 238 292 267 386 378 388 423 386 1,046 1,116 864 922 931 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Singapore Malaysia Thailand Indonesia Greater Chi

  14. Slide 14: Exposure to China

    Exposure to China Total = SGD21.1b Bank exposure in China or 6.6% 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, SGD11.0b representing about 65% of bank exposure Debt, Non-bank expo

  15. Slide 15: Exposure to Commodities

    Exposure to Commodities Oil and gas As of Traders/ Other commodity Upstream Total 31 Dec 15 downstream segments industries industries Total SGD5.0b SGD7.1b SGD8.9b SGD21.0b exposure1 Outstanding SGD3.8b SGD3.9b SGD7.1b SGD14.8b loans 3.6% of total loans 7% of total loans  Total exposure, including

  16. Slide 16: Strong Allowances Coverage

    Strong Allowances Coverage Total Loan Allowances 3,440 3,589 3,609 3,640 3,760 ($m) 350.3% 362.5% 340.5% 345.4% 315.7% 145.9% 147.0% 144.1% 142.7% 130.5% 712 773 657 699 747 2,783 2,890 2,862 2,928 2,987 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 General Allowances ($m) Specific Allowances ($m) Total Allowa

  17. Slide 17: Capital Ratios Remained Strong

    Capital Ratios Remained Strong Capital Adequacy Ratios (CAR) Total CAR 16.9% 17.1% 16.8% 16.4% 15.6% 3.0% 2.8% 2.8% Tier 2 CAR 2.8% 2.6% 13.9% 14.3% 14.0% 13.6% 13.0% Tier 1 / CET1 CAR Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 CET1 Capital ($b) 25 26 25 25 26 Tier 1 Capital ($b) 25 26 25 25 26 Total Capita

  18. Slide 18: Final Dividend Maintained

    Final Dividend Maintained 90 75 75 20 70 5 5 10 35 50 50 40 35 20 20 20 2012 2013 2014 2015 Net dividend per ordinary share (¢) Interim Final Special UOB 80th Anniversary Payout amount ($m) 1,102 1,182 1,201 1,442 Payout ratio (%) 39 39 37 45 18

  19. Slide 19: Singapore – Summarised Income Statement

    Singapore – Summarised Income Statement 2015 2014 +/(-) 4Q15 3Q15 +/(-) $m $m % $m $m % Net interest income 2,728 2,440 11.8 720 686 4.9 Fee and commission income 1,099 1,026 7.1 278 278 (0.1) Other non-interest income 831 847 (1.9) 219 255 (13.8) Total income 4,658 4,313 8.0 1,217 1,219 (0.1) Less:

  20. Slide 20: Singapore – Key Financial Indicators

    Singapore – Key Financial Indicators 2015 2014 +/(-) 4Q15 3Q15 +/(-) % % % pt % % % pt Net interest margin 1.40 1.32 0.08 1.41 1.37 0.04 Non-NII/Total income 41.4 43.4 (2.0) 40.9 43.7 (2.8) Expense/Total income 42.2 38.7 3.5 44.5 41.1 3.4 - Normalised (1) 39.9 40.3 (0.4) 40.9 39.4 1.5 Customer loans

  21. Slide 21: Malaysia – Summarised Income Statement

    Malaysia – Summarised Income Statement 2015 2014 +/(-) 4Q15 3Q15 +/(-) RM'm RM'm % RM'm RM'm % Net interest income 1,992 1,892 5.3 511 503 1.6 Fee and commission income 606 576 5.2 168 153 9.8 Other non-interest income 270 235 14.9 77 83 (7.2) Total income 2,868 2,703 6.1 756 739 2.3 Less: Total exp

  22. Slide 22: Malaysia – Key Financial Indicators

    Malaysia – Key Financial Indicators 2015 2014 +/(-) 4Q15 3Q15 +/(-) % % % pt % % % pt Net interest margin 2.28 2.21 0.07 2.29 2.27 0.02 Non-NII/Total income 30.5 30.0 0.5 32.4 31.9 0.5 Expense/Total income 38.8 37.5 1.3 38.5 37.9 0.6 Customer loans (net) - RM'b 73.6 70.5 4.4% 73.6 72.9 0.9% Customer

  23. Slide 23: Thailand – Summarised Income Statement

    Thailand – Summarised Income Statement 2015 2014 +/(-) 4Q15 3Q15 +/(-) THB'm THB'm % THB'm THB'm % Net interest income 13,143 12,366 6.3 3,387 3,323 1.9 Fee and commission income 5,868 5,215 12.5 1,492 1,540 (3.1) Other non-interest income 719 106 >100.0 171 439 (61.0) Total income 19,730 17,687 11.

  24. Slide 24: Thailand – Key Financial Indicators

    Thailand – Key Financial Indicators 2015 2014 +/(-) 4Q15 3Q15 +/(-) % % % pt % % % pt Net interest margin 3.45 3.45 - 3.45 3.49 (0.04) Non-NII/Total income 33.4 30.1 3.3 32.9 37.3 (4.4) Expense/Total income 64.1 64.2 (0.1) 65.6 60.4 5.2 Customer loans (net) - THB'b 283.3 258.8 9.4% 283.3 275.9 2.7%

  25. Slide 25: Indonesia – Summarised Income Statement

    Indonesia – Summarised Income Statement 2015 2014 +/(-) 4Q15 3Q15 +/(-) IDR'b IDR'b % IDR'b IDR'b % Net interest income 2,811 2,767 1.6 756 748 1.1 Fee and commission income 757 759 (0.3) 181 221 (18.1) Other non-interest income 439 300 46.3 148 115 28.7 Total income 4,007 3,826 4.7 1,085 1,084 0.1

  26. Slide 26: Indonesia – Key Financial Indicators

    Indonesia – Key Financial Indicators 2015 2014 +/(-) 4Q15 3Q15 +/(-) % % % pt % % % pt Net interest margin 4.08 4.41 (0.33) 4.29 4.37 (0.08) Non-NII/Total income 29.8 27.7 2.1 30.3 31.0 (0.7) Expense/Total income 68.0 64.2 3.8 62.7 62.3 0.4 Customer loans (net) - IDR't 60.1 54.8 9.8% 60.1 57.7 4.3%

  27. Slide 27: Greater China – Summarised Income Statement

    Greater China – Summarised Income Statement 2015 2014 +/(-) 4Q15 3Q15 +/(-) $m $m % $m $m % Net interest income 394 351 12.2 101 100 0.4 Fee and commission income 137 104 31.7 37 44 (15.3) Other non-interest income 175 131 33.1 44 40 10.7 Total income 706 587 20.4 182 184 (1.1) Less: Total expenses

  28. Slide 28: Greater China – Key Financial Indicators

    Greater China – Key Financial Indicators 2015 2014 +/(-) 4Q15 3Q15 +/(-) % % % pt % % % pt Net interest margin 1.26 1.21 0.05 1.27 1.27 - Non-NII/Total income 44.2 40.2 4.0 44.6 45.5 (0.9) Expense/Total income 46.6 45.4 1.2 50.9 45.9 5.0 Customer loans (net) - $b 18.5 16.7 10.5% 18.5 18.8 (1.8%) Cus

  29. Slide 29: Thank you

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