United Overseas Bank Limited · SGX:U11

United Overseas Bank — 1H 2005 Earnings Presentation

17 slides from United Overseas Bank's earnings presentation, Jul 29, 2005

  1. Slide 1: UOB Group First Half / Second Quarter 2005 Results Briefing

    UOB Group First Half / Second Quarter 2005 Results Briefing Presentation by Lee Wai Fai Chief Financial Officer 29 July 2005 Singapore Company Reg No. 193500026Z 1

  2. Slide 2: Disclaimer

    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 form and does not purport to be complete. It is not to be relied upon as advice to investors or potentia

  3. Slide 3: Agenda

    Agenda ƒ Review of Financial Performance ƒ Business & Geographical Segments ƒ Loans, Deposits & Asset Quality ƒ Capital Management 3

  4. Slide 4: Profit Growth of 15.6% Achieved in 1st Half 2005

    Profit Growth of 15.6% Achieved in 1st Half 2005 1H05 1H04 Incr / (Decr) $m $m $m % Net Interest Income 1,156 1,056 100 9.5 Non-Interest Income 650 536 114 21.4 Total Income 1,807 1,592 215 13.5 Less : Operating Expenses 667 548 119 21.6 Opr. Profit before Goodwill & Other Impairment 1,140 1,043 97

  5. Slide 5: Higher Profit in 2nd Quarter 2005

    Higher Profit in 2nd Quarter 2005 2Q05 1Q05 2Q04 $m $m % $m % Net Interest Income 574 583 (1.6) 533 7.7 Non-Interest Income 334 316 5.6 243 37.5 Total Income 908 899 0.9 775 17.0 Less : Operating Expenses 347 319 8.8 280 23.9 Opr. Profit before Goodwill & Other Impairment 560 580 (3.4) 495 13.2 Less

  6. Slide 6: Higher Net Interest Income despite Lower Average Interest Margin

    Higher Net Interest Income despite Lower Average Interest Margin Net Interest Income and Margin 3.12% 3.13% 3.01% 3.16% 3.21% 3.00% 2.93% 2.99% 3.12% 2.22% 2.25% 2.10% 2.02% 2.14% 2.05% 2.05% 2.06% 1.97% 2nd Half 1,039 1,043 1,099 1st 562 583 574 1,156 533 537 Half 1,089 1,028 1,056 2002 2003 2004 2

  7. Slide 7: Higher Non-Interest Income

    Higher Non-Interest Income Non-Interest Income (Non-NII) and Non-NII Ratio 34.5% 36.0% 33.9% 36.8% 34.6% 35.2% 29.9% 33.5% 31.3% 334 316 650 298 568 270 520 547 542 536 243 148 93 131 279 184 91 386 223 214 91 266 278 139 384 372 204 186 186 322 180 247 254 269 319 152 1H 2H 1H 2H 1H 2H 1H 2Q04 3Q04

  8. Slide 8: Higher Operating Expenses

    Higher Operating Expenses Operating Expenses and Expense/Income Ratio 37.6% 36.9% 35.4% 34.7% 42.3% 39.0% 38.3% 36.2% 35.5% 2nd 364 347 Half 547 315 56 319 559 678 56 280 50 52 40 1st Half 527 537 548 667 2002 2003 2004 2005 2Q04 3Q04 4Q04 1Q05 2Q05 Operating OperatingExpenses Expenses($m) ($m) IT I

  9. Slide 9: Individual Impairment Charges on Loans

    Individual Impairment Charges on Loans Individual Impairment on Loans Charged to Profit & Loss Account 46 bp 48 bp 68 bp 41 bp 55 bp 34 bp 38 bp 36 bp 2nd Half 231 100 24 bp 122 1st 245 Half 191 72 81 70 130 60 113 41 2002 2003 2004 2005 2Q04 3Q04 4Q04 1Q05 2Q05 Individual IndividualImpairment Impai

  10. Slide 10: Profit Contribution by Business Segment

    Profit Contribution by Business Segment Business Segment 1H05 1H04 Incr/(Decr) 1H05 1H05 Institutional : 41 % Segment Profit Before Tax $m $m % Individual : 24 % Individual Financial Services 255 276 (7.6) Other : 16 % Institutional Financial Services 446 374 19.3 Asset Management : 5 % Global Treas

  11. Slide 11: Higher Profit Contribution from Overseas Operations

    Higher Profit Contribution from Overseas Operations Geographical Segment 1H05 1H05 1H05 1H04 Incr/(Decr) Profit Before Tax $m $m % Singapore : 76% ASEAN : 12% Singapore (including ACU) 843 824 2.3 Rest of the world : 7% Other ASEAN countries 135 99 36.4 Asia-Pacific : 5% Other Asia-Pacific countries

  12. Slide 12: Slight Growth in Loans and Deposits

    Slight Growth in Loans and Deposits Customer Loans, Deposits and L/D Ratio 83.6% 83.3% 81.3% 80.1% 80.3% 79.0 80.1 80.5 71.6 77.4 59.9 64.5 64.2 64.1 64.6 Jun'04 Sep'04 Dec'04 * Mar'05 Jun'05 Net NetCustomer CustomerLoans Loans($b) ($b) Customer CustomerDeposits Deposits($b) ($b) Loans Loans//Deposi

  13. Slide 13: Decrease in NPLs across Major Countries

    Decrease in NPLs across Major Countries Group: NPLs ($m) 4,852 5,866 5,199 4,728 4,563 NPL Ratio 7.6% 8.5% 7.6% 6.9% 6.7% 526 1,223 482 561 414 140 1,169 379 935 1,099 1,045 936 760 682 679 3,215 3,182 2,788 2,533 2,460 Jun'04 Sep'04 Dec'04 * Mar'05 Jun'05 Singapore Malaysia Thailand Other * Restate

  14. Slide 14: Impairment Coverage Remains Strong

    Impairment Coverage Remains Strong Total Impairment 3,249 3,808 3,573 3,267 3,110 ($m) 68.7% 69.1% 68.2% 67.0% 64.9% 2,437 2,203 1,888 1,895 1,794 1,361 1,371 1,370 1,372 1,316 Jun'04 Sep'04 Dec'04 * Mar'05 Jun'05 Collective CollectiveImpairment Impairment($m) ($m) Individual IndividualImpairment Im

  15. Slide 15: Strong Capital Position

    Strong Capital Position Capital Adequacy Ratios (CAR) 16.1% 15.5% 15.4% 15.0% 13.6% 12.8% 11.3% 10.9% 10.8% 10.1% Jun'04 Sep'04 Dec'04 * Mar'05 Jun'05 Total TotalCAR CAR Tier Tier11CAR CAR * Restated upon adoption of FRS39 on 1 January 2005 15

  16. Slide 16: Maintain High Dividend Rate

    Maintain High Dividend Rate Dividend in 18.8% Specie 40% 40% Final 28.5% 25% Interim 15% 20% 20% 20% 2002 2003 2004 1H05 Dividend in Specie $230m - - $351m Cash Dividend $490m $748m $744m $246m Share Buy-back - - $500m - Total Utilization $720m $748m $1,244m $597m of Profit % to NPAT 72% 62% 86% 73%

  17. Slide 17: In Summary …

    In Summary … ƒ NPAT grew 15.6% to reach $815 million in 1st Half 2005 ƒ ROE (excluding goodwill) increased to 12.8% in 1st Half 2005 from 12.0% in 1st Half 2004 ƒ Expense-to-income ratio increased 2.5% points to 36.9% in 1st Half 2005 ƒ NPL ratio improved to 6.7% in 1st Half 2005 from 7.6% in 1st Ha

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