United Overseas Bank Limited · SGX:U11
United Overseas Bank — The 12th Credit Suisse Asian Investment Conference 2009
20 slides from United Overseas Bank's conference presentation, March 2009
Slide 1: The 12th Credit Suisse Asian Investment Conference 2009
The 12th Credit Suisse Asian Investment Conference 2009 Lee Wai Fai Chief Financial Officer March 2009 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 f
Slide 2: Agenda
Agenda 11 Business Business Overview Overview 22 Financial Financial Overview Overview 33 Outlook Outlook 2
Slide 3: UOB Overview
UOB Overview Founding Key Statistics Total assets : S$182.9 billion Founded in August 1935 by a group of (US$127.9 billion) Chinese businessmen and Datuk Wee Shareholder’s equity : S$15.6 billion Kheng Chiang, grandfather of the present (US$10.9 billion) UOB Group CEO, Mr. Wee Ee Cheong Gross loans
Slide 4: Proven Track Record of Execution
Proven Track Record of Execution Profit (S$ million) Acquired Buana in 2005 2007: S$2,109m Acquired BOA in 2004 2008: S$1,937m 2005: S$1,709m Acquired OUB 2004:S$1,452m in 2001 Acquired ICB in 1987 Acquired FEB 2000:S$913m in 1984 1995:S$633m Acquired LWB in 1973 Acquired Acquired CKB UOBR and 1985:
Slide 5: Established Global Presence
Established Global Presence Total Assets Breakdown More than 500 offices in 18 countries Singapore : 67% USA - 3 Singapore - 71 Malaysia : 10% Canada - 1 China - 11 Indonesia - 217 Thailand : 5% France - 1 Indonesia : 2% Hong Kong - 7 Thailand - 153 Greater China : 5% UK - 1 Other : 11% Taiwan - 3 M
Slide 6: Strategic Focus
Strategic Focus Information Technology Treasury Risk Consumers SMEs Management & Compliance Investment Operational Banking Excellence Human Resources To To be be recognized recognized as as aa leader leader in in consumer consumer and and SME SME banking banking services services in in the the regio
Slide 7: Strategic Directions
Strategic Directions Strengthen Domestic Market Further Grow Established Leadership in Core Segments Regional Franchise Establish Strategic Partnerships – Invest in Infrastructure and Talent Focused in High Growth Regions for the Future Our Our Mission: Mission: To To Be A Premier Bank in Be A Premi
Slide 8: Agenda
Agenda 11 Business Business Overview Overview 22 Financial Financial Overview Overview 33 Outlook Outlook 8
Slide 9: Strong Growth in Net Interest Income and Margin
Strong Growth in Net Interest Income and Margin Net Interest Income and Margin 3.18% 3.25% 3.21% 3.05% 3.15% 3.08% 3.02% 3.19% 3.09% 2.45% 2.20% 2.23% 2.21% 2.27% 1.99% 1.99% 2.04% 1.94% 0.93% 1.09% 0.58% 0.66% 0.56% 0.79% 0.93% 0.88% 0.47% 957 852 873 893 150 743 123 143 134 3,576 76 2,710 2,980 2,
Slide 10: Higher Non-Interest Income Quarter-on-Quarter
Higher Non-Interest Income Quarter-on-Quarter Non-Interest Income (Non-NII) and Non-NII Ratio 37.6% 35.8% 38.8% 41.7% 38.7% 31.9% 32.7% 26.3% 29.0% 23.9% 23.7% 26.2% 20.8% 29.0% 24.0% 20.3% 22.6% 1,892 17.0% 1,675 1,514 532 550 1,414 614 580 162 414 391 261 319 514 511 111 46 162 1,278 370 1,003 1,0
Slide 11: Disciplined Cost Management
Disciplined Cost Management Operating Expenses and Expense / Income Ratio 41.1% 41.4% 39.0% 43.6% 37.9% 41.6% 39.2% 39.4% 36.4% 2,018 2,050 1,736 272 285 556 496 518 504 532 1,424 256 67 71 76 67 71 222 2005 2006 2007 2008 4Q07 1Q08 2Q08 3Q08 4Q08 Operating OperatingExpenses Expenses($m) ($m) IT ITE
Slide 12: Prudent Provisioning Policy
Prudent Provisioning Policy Impairment Charges on Loans 47 bp 75 bp 31 bp 33 bp 57 bp 71 bp 19 bp 41 bp 18 bp 29 bp 13 bp 27 bp 27 bp 324 182 215 4 bp 142 155 67 65 67 10 2005 2006 2007 2008 4Q07 1Q08 2Q08 3Q08 4Q08 Individual IndividualImpairment ImpairmentCharges Chargeson onLoans Loans($m) ($m) I
Slide 13: Higher NPL Reflecting Difficult Economic Conditions
Higher NPL Reflecting Difficult Economic Conditions NPL ($m) * 1,713 1,602 1,547 1,629 2,062 NPL Ratio 1.8% 1.6% 1.5% 1.5% 2.0% 251 63 97 18 66 66 121 72 73 16 16 24 68 64 79 391 436 393 367 367 547 495 504 522 511 628 555 512 527 704 Dec'07 Mar'08 Jun'08 Sep'08 Dec'08 Singapore Malaysia Thailand In
Slide 14: Improved Liquidity
Improved Liquidity Customer Loans, Deposits and L/D Ratio 89.3% 88.8% 86.6% 86.1% 84.5% 118.2 107.0 109.6 113.1 109.0 100.4 99.8 92.7 94.4 97.4 Dec'07 Mar'08 Jun'08 Sep'08 Dec'08 Net NetCustomer CustomerLoans Loans($b) ($b) Customer CustomerDeposits Deposits($b) ($b) Loans Loans//Deposits Deposits(L
Slide 15: Sound Balance Sheet and Capital Position to Withstand Current Challenging Environment
Sound Balance Sheet and Capital Position to Withstand Current Challenging Environment Stable & diversified customer loans portfolio (55% of assets or S$100 billion) • Spread out across countries, business segments and industries. Portfolio diversity remained stable • Credit quality intact with no ma
Slide 16: Maintain High Net Dividend Rate
Maintain High Net Dividend Rate Special Dividend in Specie 24.2 cts 12.3 cts Final 22.8 cts Interim 41.0 cts 45.0 cts 40.0 cts 32.0 cts 16.0 cts 16.0 cts 16.4 cts 20.0 cts 2005 2006 2007 2008 Special Dividend $351m * $369m $187m - Cash Dividend $737m $868m $926m $903m Dividend Payout $1,088m $1,237m
Slide 17: Agenda
Agenda 11 Business Business Overview Overview 22 Financial Financial Overview Overview 33 Outlook Outlook 17
Slide 18: The Bright Spots
The Bright Spots Governments in region have flexibility in providing fiscal safety nets to alleviate further shocks and stimulate economies. Strong fundamentals will continue to support domestic consumer and business activity. Singapore’s risk-sharing schemes also provide buffer and business opportu
Slide 19: Looking Ahead
Looking Ahead Amidst global financial crisis, 2009 to be another challenging year. But Asia in position to rebound faster as not saddled with structural problems UOB will inevitably be affected but will not be paralysed by uncertainties Return to ‘basics’ banking model bodes well for UOB - increasin
Slide 20: Why UOB?
Why UOB? Proven track record of financial conservatism Unique Strengths Strong management committed to the long term Well-anchored regional bank with more than a local knowledge - a local Southeast Asia proxy network within each country Operating platform, risk management, and IT anchored back to we
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