United Overseas Bank Limited · SGX:U11
United Overseas Bank — Non-Deal Roadshow (November 2003)
19 slides from United Overseas Bank's roadshow presentation, November 2003
Slide 1: Investor Update
Investor Update November November 2003 2003
Slide 2: Overview and Outlook, Operating Performance, Technology and Operations
Overview and Outlook Operating Performance Technology and Operations 2 SG000GXK
Slide 3: Financial Highlights
Financial Highlights (S$mm) 1Q 2003 2Q 2003 3Q 2003 Income Statement Net profit 281 240 281 Cash ROA (%) 1.25 1.08 1.24 Cash ROE (%) 10.4 9.0 10.3 Cost to income ratio (%) 33.8 34.3 35.5 Dec 2002 Sep 2003 Balance Sheet Total assets 107,469 108,016 Customer loans and advances (net of cumulative provi
Slide 4: Management Approach
Management Approach Riding on imminent economic recovery Short Term Capitalise on available opportunities to grow organically Growth Building resilient franchise Regionalization (organic growth, Long Term acquisitions) Balanced revenue composition Strategic infrastructure Optimal capital structure R
Slide 5: Near Term Outlook
Near Term Outlook Early signs of economic pickup Modest asset growth in Singapore, but profitability stronger due to stability in asset quality Thailand and Malaysia present potential outperformance opportunities 5 SG000GXK
Slide 6: Committed to Manage for Long Term Growth
Committed to Manage for Long Term Growth 1999 2002 Sep 03 2006 2010 Cash ROE (%) 12.6 9.8 9.9 15.0 20.0 Overseas profit 8.6 22.4 23.4 40.0 contribution* (%) Non-interest income 36.6 29.6 31.8 50.0 contribution (%) Our Our Vision: Vision: To To be be aa Premier Premier Bank Bank in in the the Asia As
Slide 7: Going Forward
Going Forward Maintain market dominance in Singapore Strengthen fee-based income Poised to grow regional business more aggressively Capital Capital Management Management Balanced Balanced with with Growth Growth 7 SG000GXK
Slide 8: Overview and Outlook, Operating Performance, Technology and Operations
Overview and Outlook Operating Performance Technology and Operations 8 SG000GXK
Slide 9: Earnings Resilience
Earnings Resilience Net Profit After Tax (S$mm) 1Q03 2Q03 3Q03 (S$mm) Net Interest Income 535 532 524 400 Non-Interest Income 249 259 235 350 Total Income 785 791 758 316 Operating Expenses (266) (271) (269) 300 281 281 275 Operating Profit (before 519 520 489 goodwill amortisation & 250 234 240 pro
Slide 10: Margin Pressure Starting to Ease
Margin Pressure Starting to Ease Margins maintained Net Interest Income Net Interest Margin despite intense competition (S$mm) (%) 600 2.75 Stable interest rates is easing off pressure on 545 544 534 margins 535 532 524 2.50 2.33 2.28 2.29 500 2.26 2.25 2.06 2.00 400 1.75 300 1.50 1Q 2Q 3Q 1Q 2Q 3Q
Slide 11: Growing Fee & Commission Income
Growing Fee & Commission Income Contributed 63% to Fee and Commission Income Non-Interest Income non-interest income 1Q03 2Q03 3Q03 (S$mm) (S$mm) 300 Improved contribution Credit Card 20 20 24 from credit card, fund 250 249 259 management and Fund Management 16 16 21 20 36 235 22 31 investment-relat
Slide 12: Asset Quality Stabilizing
Asset Quality Stabilizing Non-Performing Loans (NPLs) NPLs broadly stable with no major deterioration in Total NPLs NPLs categories 5,968 5,679 5,669 5,393 5,343 (S$mm) (S$mm) (%) 9.3% 9.0% 8.9% Reduction in NPLs 7,000 8.4% 8.4% 10 6,000 across regions 5,000 8 4,000 3,851 3,619 3,615 6 3,386 3,406 I
Slide 13: Credit Growth Remains Challenging
Credit Growth Remains Challenging Net Customer Loans Customer Deposits Credit growth in Singapore remains (S$bn) (S$bn) muted but initial signs of 80 100 optimism and a pick up 60 60.9 58.9 59.2 59.8 59.2 80 74.5 67.9 65.8 66.8 66.1 60 Leading market share 40 maintained despite 40 20 increased compe
Slide 14: Strong Capital Position
Strong Capital Position Maintain proactive stance in Capital Adequacy Ratio (BIS) managing capital (S$bn) (%) Seek to grow assets through 90.0 25.0 acquisitions or organic growth 18.5 20.0 17.8 17.9 15.3 15.4 In absence of opportunities, 60.0 15.0 option to return excess capital to shareholders 12.2
Slide 15: Progressing in Non-Core Asset Disposal
Progressing in Non-Core Asset Disposal MAS announced 2-year extension till 17 July 06 to complete divestiture of non-core assets Implications for UOB: More flexibility given current difficult economic and market conditions More time to evaluate proposals to decide on most beneficial course of action
Slide 16: Overview and Outlook, Operating Performance, Technology and Operations
Overview and Outlook Operating Performance Technology and Operations 16 SG000GXK
Slide 17: IT Management Philosophy
IT Management Philosophy Differentiation through customer segmentation and service Leveraging volume to create infrastructure scale Fast and measurable benefits 17 SG000GXK
Slide 18: Leveraging IT and Creating Scale
Leveraging IT and Creating Scale Current Status 80% of all transaction volume processed in Singapore 70% of IT staff reside in Singapore Heavy re-engineering of over 70% current processes to become more customer-centric and service differentiated Centralization of operations into “Processing Centers
Slide 19: Regional Expansion
Regional Expansion Shanghai Bring best practice to Improve product roll out Hong Kong Taiwan Improve risk management HK: Sep 03 Bangkok TH: 2004 Create operational efficiency AU: 2004/05 Enhance customer CN: 2004/05 Kuala MY: Under discussion management Lumpur Singapore Create scale and enhance the
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