United Overseas Bank Limited · SGX:U11

United Overseas Bank — United Overseas Bank Ord — Q1 2025 Earnings Presentation

18 slides from United Overseas Bank's earnings presentation, May 7, 2025

  1. Slide 1: UOB Group Financial Updates

    UOB Group Financial Updates Leong Yung Chee Group Chief Financial Officer For the First Quarter Ended 31 March 2025 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

  2. Slide 2: Key Highlights

    Key Highlights Net profit after tax • 1Q25 net profit at $1.5b, strong earnings driven by broad-based income and franchise growth $1.5b - 2% QoQ unchanged YoY • NIM stable at 2.00% from proactive balance sheet management. NII eased on Net Interest Margin shorter quarter. Loans grew 1% QoQ and 6% YoY

  3. Slide 3: 1Q25 net profit supported by broad-based franchise growth; prudent stance amid macro uncertainties

    1Q25 net profit supported by broad-based franchise growth; prudent stance amid macro uncertainties 1Q25 4Q24 QoQ 1Q24 YoY $m $m +/(-)% $m +/(-)% Net interest income 2,409 2,451 (2) 2,362 2 Net fee income 694 567 22 580 20 Other non-interest income 554 443 25 581 (5) Total income 3,657 3,461 6 3,523

  4. Slide 4: Driving growth through diversified income streams and steady CASA growth

    Driving growth through diversified income streams and steady CASA growth Group Retail Income by business segment Robust growth in CASA and wealth cushioning competitive margin pressure; wealth management income up 25% to $0.3b 1Q25 1Q24 YoY $'m $'m +18% +8% +25% Group Retail 1,341 1,354 (1%) increas

  5. Slide 5: NIM stable at 2.00% from proactive balance sheet management; NII eased on shorter quarter

    NIM stable at 2.00% from proactive balance sheet management; NII eased on shorter quarter 2.47 2.51 2.56 2.48 2.40 Loan Margin (%) Net Interest Margin (%) 2.02 2.05 2.05 2.00 2.00 Interbank & Securities Margin (%) 1.11 1.10 1.16 0.98 1.01 -2% 2,401 2,460 2,451 2,409 2,362 416 385 404 NII from Interb

  6. Slide 6: Double-digit fee growth supported by record loan fees, healthy wealth and cards momentum

    Double-digit fee growth supported by record loan fees, healthy wealth and cards momentum +14% 896 805 812 90 784 755 89 90 91 Others ($m) 93 281 273 276 Credit Card ($m) 254 304 213 173 183 Wealth ($m) 164 178 312 Loan / Trade Related ($m) 244 270 265 210 1Q24 2Q24 3Q24 4Q24 1Q25 Note: Above fees ar

  7. Slide 7: Stronger customer-related treasury income and good performance from trading / liquidity management activities

    Stronger customer-related treasury income and good performance from trading / liquidity management activities 59 54 52 41 38 Customer-related / T&I (%) 709 527 +27% 439 466 400 Others ($m) 367 309 223 183 152 Customer-Related ($m) 270 243 219 216 215 1Q24 2Q24 3Q24 4Q24 1Q25 7

  8. Slide 8: Maintained cost discipline with lower CIR at 42.6%

    Maintained cost discipline with lower CIR at 42.6% 44.6 45.6 44.1 Cost-to-income Ratio (%) 42.4 42.6 1,626 1,570 1,579 1,559 1,534 377 Other expenses ($m) 397 401 361 379 262 268 267 253 IT-related expenses ($m) 259 Staff costs ($m) 986 912 945 905 896 1Q24 2Q24 3Q24 4Q24 1Q25 8

  9. Slide 9: Sound asset quality with NPL ratio at 1.6%

    Sound asset quality with NPL ratio at 1.6% ($m) 1Q24 2Q24 3Q24 4Q24 1Q25 NPAs at start of period 4,946 5,051 4,952 5,055 5,210 Non-individuals New NPAs _ 249 438 212 514 400 Less: Upgrades and recoveries 183 289 190 35 177 Write-offs 34 238 71 293 60 4,979 4,962 4,903 5,241 5,373 Individuals 72 (10)

  10. Slide 10: Strengthen provision coverage amid macro uncertainties with total credit costs at 35bps

    Strengthen provision coverage amid macro uncertainties with total credit costs at 35bps. 52 36 35 Total credit costs (bps) 23 24 34 Specific credit costs (bps) 25 20 21 19 212 281 290 186 194 439 133 28 25 General allowance on loans ($m) 296 Specific allowance on loans ($m) 158 169 156 (15) (227) 1Q

  11. Slide 11: Stable and prudent allowance coverage

    Stable and prudent allowance coverage 33 32 32 32 Specific allowance/NPA (%) 30 General allowance on loans include 0.9 0.9 0.9 0.8 0.8 RLAR/Performing loans (%) 4,993 4,851 5,026 4,829 4,764 RLAR ($m) 379 379 379 379 379 General allowance ($m) 3,000 2,901 2,963 2,733 2,833 Specific allowance ($m) 1,

  12. Slide 12: Healthy loans growth of 6% YoY and 1% QoQ

    Healthy loans growth of 6% YoY and 1% QoQ By Industry By Geography +6% +1% 5% 5% 323 328 334 338 341 Rest of the world 47 49 49 48 49 24% Greater China 51 53 49 52 51 27% 69 69 73 74 74 ASEAN-4 $341b Mar-25 Singapore 157 158 163 164 167 9% Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 8% Note: Loans are classi

  13. Slide 13: Robust liquidity and funding position with healthy CASA growth

    Robust liquidity and funding position with healthy CASA growth 160 149 All-currency LCR (%) 141 143 143 121 118 116 116 116 Net Stable Fund Ratio (NSFR) (%) 82.1 83.4 82.3 82.7 84.0 Loan/Deposit Ratio (LDR) (%) 470 468 467 448 450 60 61 70 64 66 Wholesale Funding ($b) 1 189 186 183 180 FD & others (

  14. Slide 14: Strong capital position with CET1 ratio maintained at 15.5%

    Strong capital position with CET1 ratio maintained at 15.5% 15.5 15.5 15.5 CET1 ratio (%) 13.9 13.4 CET1 ratio (%) 15.2 15.4 15.4 – Fully Loaded 276 284 260 269 252 RWA ($b) 1 Mar-24 Jun-24 Sep-24 Dec-24 1 Mar-25 1 Leverage ratio (%) 7.0 7.1 6.8 6.9 7.3 (1) Based on MAS Notice 637 issued on 20 Septe

  15. Slide 15: Appendix

    ▪ Exposure to Greater China Appendix ▪ Exposure to Commercial Real Estate - Office 15

  16. Slide 16: Exposure to Greater China

    Exposure to Greater China 75.9 78.6 75.3 73.7 9.0 69.9 Debt ($b) 9.1 9.0 8.0 7.8 Non Bank ($b) 51.2 52.6 49.3 ▪ ~$2b in loans to Chinese 52.2 51.1 developers (1% of group loans) Bank ($b) 15.6 17.0 17.0 13.5 11.0 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Mainland China Hong Kong SAR Bank exposure ($8.0b) B

  17. Slide 17: Exposure to Commercial Real Estate - Office

    Exposure to Commercial Real Estate - Office Commercial Real Estate - Office exposure is 6.9% of loans By geography as % of loans • More than half of office 0.2% 0.6% Others exposure is in Singapore 0.8% 0.7% United Kingdom • Overseas exposure backed 0.8% 0.8% by strong sponsors United States Mar-25

  18. Slide 18: Thank You

    Thank You & Right By You

United Overseas Bank Ord — Q1 2025 Earnings Presentation on 6ix