United Overseas Bank Limited · SGX:U11
United Overseas Bank — FY2014 Earnings Presentation
26 slides from United Overseas Bank's earnings presentation, Feb 13, 2015
Slide 1: UOB Group Full Year 2014 Financial Highlights
UOB Group Full Year 2014 Financial Highlights Lee Wai Fai Group Chief Financial Officer 13 February 2015 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: New High FY14 NPAT of $3.25 billion, up 8% YoY
New High FY14 NPAT of $3.25 billion, up 8% YoY 2014 2013 +/(-) $m $m % Net interest income 4,558 4,120 10.6 Fee and commission income 1,749 1,731 1.1 Other non-interest income 1,151 870 32.3 Total income 7,457 6,720 11.0 Less: Total expenses 3,146 2,898 8.6 Operating profit 4,311 3,822 12.
Slide 3: 4Q14 NPAT of $786 million, up 2% YoY but down 9% QoQ
4Q14 NPAT of $786 million, up 2% YoY but down 9% QoQ 4Q14 4Q13 +/(-) 3Q14 +/(-) $m $m % $m % Net interest income 1,168 1,095 6.7 1,155 1.1 Fee and commission income 450 435 3.5 475 (5.3) Other non-interest income 232 212 9.2 341 (32.0) Total income 1,850 1,742 6.2 1,971 (6.1) Less: T
Slide 4: NII Rose 11% YoY on Strong Loan Growth
NII Rose 11% YoY on Strong Loan Growth Net Interest Income (NII) and Margin 2.41% 2.29% 2.10% 2.06% 2.05% 2.06% 2.08% 2.12% 2.06% 1.92% 1.87% 1.72% 1.71% 1.74% 1.73% 1.71% 1.71% 1.69% 0.97% 0.91% 0.76% 0.82% 0.85% 0.90% 0.84% 0.81% 0.71% 4,558 4,120 1,155 1,168 3,917 620 1,095 1,110 1,124 3,678 537
Slide 5: Strong Fee Income and Improved Trading and Investment Income YoY
Strong Fee Income and Improved Trading and Investment Income YoY Led By Favourable Market Sentiment Non-Interest Income (Non-NII) and Non-NII Ratio 39.7% 38.7% 38.9% 40.3% 41.4% 35.5% 37.1% 36.7% 36.8% 25.8% 23.1% 23.2% 23.5% 25.0% 23.6% 24.1% 24.3% 21.8% 2,900 2,578 2,600 1,151 816 2,021 760 1,070
Slide 6: CIR was lower at 42.2%
CIR was lower at 42.2% Operating Expenses and Expense / Income Ratio 43.8% 43.1% 41.7% 40.6% 43.5% 43.0% 42.3% 43.1% 42.2% 3,146 2,747 2,898 2,450 787 800 805 1,321 762 755 1,151 1,186 1,047 315 301 331 339 351 1,597 1,712 1,825 1,403 447 454 456 461 454 2011 2012 2013 2014 4Q13 1Q14 2Q14 3Q14 4Q14
Slide 7: Total Credit Costs Paced to Loan Growth
Total Credit Costs Paced to Loan Growth Impairment Charges on Loans 30bp 30bp 30bp 32bp 32bp 32bp 32bp 32bp 30bp 30bp 12bp 8bp 12bp 19bp 11bp 15bp 14bp (0)bp 454 93 75 73 238 51 163 136 2011 2012 2013 2014 (2) 4Q13 1Q14 2Q14 3Q14 4Q14 Individual Impairment Charges on Loans ($m) Individual Impairment
Slide 8: Performance by Business Segment
Performance by Business Segment 2014 2% 2014 2013 +/(-) 11% Segment Operating Profit $m $m % 32% Group Retail (GR) 1,386 1,257 10.3 Group Wholesale Banking (GWB) 2,349 2,131 10.2 55% Global Markets & Investment Mgt (GMIM) 474 464 2.2 2013 Others 102 (30) >100.0 12% Total 4,311 3,822 12.8 33% 55% GR
Slide 9: Regional Operating Profit Contribution Rose 7% YoY
Regional Operating Profit Contribution Rose 7% YoY (FX translation excluded) 2014 At 7% constant 7% 4% FX rate 6% Operating 2014 2013 +/(-) +/(-) 61% Profit $m $m % % 15% Singapore 2,642 2,213 19.4 19.4 2013 Regional: 1,370 1,310 4.6 7.3 Malaysia 655 634 3.3 5.4 8% Thailand 248 222 11.7 16.0 7% 4% I
Slide 10: Loans Increased to $199b, up 10% YoY and 2% QoQ Across Geographies
Loans Increased to $199b, up 10% YoY and 2% QoQ Across Geographies Dec-14 Dec-13 +/(-) Sep-14 +/(-) Dec-14 8% Gross Loans ^ $b $b % $b % 13% Singapore 109.7 103.7 5.8 109.1 0.5 55% 6% Regional: 73.0 62.8 16.2 71.4 2.3 5% Malaysia 25.8 24.2 6.5 26.1 (1.2) 13% Thailand 10.8 9.9 9.6 10.5 3.6 Indonesia
Slide 11: Healthy Deposit Growth of 9% YoY and 4% QoQ
Healthy Deposit Growth of 9% YoY and 4% QoQ Dec-14 Customer Dec-14 Dec-13 +/(-) Sep-14 +/(-) 7% 6% Deposits $b $b % $b % 3% 5% Singapore 156.2 146.5 6.6 149.7 4.3 12% 67% Regional: 61.5 56.3 9.1 59.3 3.6 Malaysia 28.5 27.5 3.3 28.4 0.1 Thailand 11.3 9.3 20.9 10.5 8.0 Dec-13 Indonesia 6.7 6.0 12.9 6.
Slide 12: Stable Liquidity Position
Stable Liquidity Position Customer Loans, Deposits and LDR 85.5% 87.8% 85.8% 83.4% 83.8% 216.6 224.4 233.8 214.5 216.1 178.9 185.3 189.7 192.6 195.9 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Net Customer Loans ($b) Customer Deposits ($b) Loans / Deposits Ratio (LDR) (%) SGD LDR (%) 93.6 93.7 98.2 94.1 93.0
Slide 13: Credit Quality Remained Intact
Credit Quality Remained Intact NPL ($m) 2,074 2,077 2,309 2,289 2,358 NPL Ratio 1.1% 1.1% 1.2% 1.2% 1.2% 419 432 738 124 669 118 686 298 275 120 126 117 244 259 267 147 167 203 256 386 211 400 408 407 419 805 864 521 489 532 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Singapore Malaysia Thailand Indonesia Gr
Slide 14: Strong Impairment Coverage
Strong Impairment Coverage Total Loan Impairment 3,121 3,327 3,445 3,360 3,440 ($m) 316.3% 305.1% 311.4% 350.3% 298.9% 150.5% 160.2% 149.2% 146.8% 145.9% 834 659 657 779 798 2,548 2,611 2,701 2,783 2,323 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Collective Impairment ($m) Individual impairment ($m) Cumulat
Slide 15: Capital Ratios Remained Strong
Capital Ratios Remained Strong Capital Adequacy Ratios (CAR) 17.7% 17.8% 16.6% 17.0% 16.9% Total CAR 3.7% 3.9% 3.0% 3.0% 3.4% Tier 2 CAR 13.2% 14.0% 13.9% 14.0% 13.9% Tier 1 / CET1 CAR Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 CET1 Capital ($b) 22 23 23 24 25 Tier 1 Capital ($b) 22 23 23 24 25 Total Capita
Slide 16: Final Dividend of 50 cents and Special Dividend of 5 cents
Final Dividend of 50 cents and Special Dividend of 5 cents 5 5 10 50 50 40 40 20 20 20 20 2011 2012 2013 2014 Net dividend per ordinary share (¢) Interim Final Special Payout amount ($m) 944 1,102 1,182 1,202 Payout ratio (%) 41 39 39 37 16
Slide 17: Singapore – Summarised Income Statement
Singapore – Summarised Income Statement 2014 2013 +/(-) 4Q14 3Q14 +/(-) $m $m % $m $m % Net interest income 2,440 2,176 12.1 605 618 (2.1) Fee and commission income 1,026 1,053 (2.5) 257 280 (8.4) Other non-interest income 847 546 55.0 161 258 (37.7) Total income 4,313 3,775 14.3 1,022 1,156 (11.6)
Slide 18: Singapore – Key Financial Indicators
Singapore – Key Financial Indicators 2014 2013 +/(-) 4Q14 3Q14 +/(-) % % % pt % % % pt Net interest margin 1.32 1.32 - 1.27 1.32 (0.05) Non-NII / Total income 43.4 42.4 1.0 40.8 46.6 (5.8) Expense / Total income 38.7 41.4 (2.7) 40.1 37.2 2.9 Customer loans (net) - $b 126.0 117.1 7.6% 126.0 124.4 1.3
Slide 19: Malaysia – Summarised Income Statement
Malaysia – Summarised Income Statement 2014 2013 +/(-) 4Q14 3Q14 +/(-) RM'm RM'm % RM'm RM'm % Net interest income 1,892 1,616 17.1 510 494 3.2 Fee and commission income 576 555 3.8 152 138 10.1 Other non-interest income 235 279 (15.8) 55 69 (20.3) Total income 2,703 2,450 10.3 717 701 2.3 Less: Tot
Slide 20: Malaysia – Key Financial Indicators
Malaysia – Key Financial Indicators 2014 2013 +/(-) 4Q14 3Q14 +/(-) % % % pt % % % pt Net interest margin 2.21 2.09 0.12 2.26 2.32 (0.06) Non-NII / Total income 30.0 34.0 (4.0) 28.9 29.5 (0.6) Expense / Total income 37.5 34.6 2.9 38.2 35.7 2.5 Customer loans (net) - RM'b 70.5 64.1 9.9% 70.5 69.5 1.5
Slide 21: Thailand – Summarised Income Statement
Thailand – Summarised Income Statement 2014 2013 +/(-) 4Q14 3Q14 +/(-) THB'm THB'm % THB'm THB'm % Net interest income 12,366 11,316 9.3 3,284 3,115 5.4 Fee and commission income 5,215 4,124 26.5 1,394 1,483 (6.0) Other non-interest income 106 122 (13.1) 16 99 (83.8) Total income 17,687 15,562 13.7
Slide 22: Thailand – Key Financial Indicators
Thailand – Key Financial Indicators 2014 2013 +/(-) 4Q14 3Q14 +/(-) % % % pt % % % pt Net interest margin 3.45 3.42 0.03 3.63 3.48 0.15 Non-NII / Total income 30.1 27.3 2.8 30.0 33.7 (3.7) Expense / Total income 64.2 64.9 (0.7) 63.7 62.6 1.1 Customer loans (net) - THB'b 258.8 247.8 4.4% 258.8 255.8
Slide 23: Indonesia – Summarised Income Statement
Indonesia – Summarised Income Statement 2014 2013 +/(-) 4Q14 3Q14 +/(-) IDR'b IDR'b % IDR'b IDR'b % Net interest income 2,767 2,573 7.5 703 684 2.8 Fee and commission income 759 716 6.0 210 202 4.0 Other non-interest income 300 375 (20.0) 85 80 6.3 Total income 3,826 3,664 4.4 998 966 3.3 Less: Tota
Slide 24: Indonesia – Key Financial Indicators
Indonesia – Key Financial Indicators 2014 2013 +/(-) 4Q14 3Q14 +/(-) % % % pt % % % pt Net interest margin 4.41 4.69 (0.28) 4.25 4.37 (0.12) Non-NII / Total income 27.7 29.8 (2.1) 29.6 29.2 0.4 Expense / Total income 64.2 60.8 3.4 60.0 61.8 (1.8) Customer loans (net) - IDR't 54.8 51.6 6.2% 54.8 53.7
Slide 25: Greater China – Summarised Income Statement
Greater China – Summarised Income Statement 2014 2013 +/(-) 4Q14 3Q14 +/(-) $m $m % $m $m % Net interest income 351 296 18.6 94 81 15.2 Fee and commission income 104 101 3.3 23 26 (11.4) Other non-interest income 131 105 25.1 25 33 (24.3) Total income 587 502 16.9 142 140 1.1 Less: Total expenses 26
Slide 26: Greater China – Key Financial Indicators
Greater China – Key Financial Indicators 2014 2013 +/(-) 4Q14 3Q14 +/(-) % % % pt % % % pt Net interest margin 1.21 1.39 (0.18) 1.23 1.12 0.11 Non-NII / Total income 40.2 41.0 (0.8) 33.8 42.0 (8.2) Expense / Total income 45.4 43.5 1.9 56.0 47.4 8.6 Customer loans (net) - $b 16.7 12.2 37.3% 16.7 15.6