UOB - Premier Regional Bank

Transcription

1 UOB - Premier Regional Bank First Half / Second Quarter 2004 Group Results Briefing Address by Mr Kuek Tong Au Executive Vice President Corporate Services 30 July 2004 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 potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered with or without professional advice when deciding if an investment is appropriate. UOB Bank accepts no liability whatsoever with respect to the use of this document or its content.

2 Higher Profit Recorded in 1 st Half H04 1H03 Incr / (Decr) $m $m $m % Net Interest Income 1,056 1, Non-Interest Income (32) (5.7) Total Income 1,571 1,575 (4) (0.2) Less: Operating Expenses Operating Profit before Goodwill and Provisions 1,023 1,038 (15) (1.4) Less: Goodwill Amortisation (1) (1.2) Provisions (204) (72.9) Operating Profit after Goodwill and Provisions Share of Profit of Associates Profit before Tax & Minority Interests Less: Tax & Minority Interests Net Profit After Tax

3 Profit Growth in 2 nd Quarter Q04 $m 2Q03 Incr / (Decr) $m $m % Net Interest Income Non-Interest Income (56) (20.1) Total Income (34) (4.3) Less: Operating Expenses Operating Profit before Goodwill and Provisions (43) (8.3) Less: Goodwill amortisation (1) (1.3) Provisions (155) (90.9) Operating Profit after Goodwill and Provisions Share of Profit of Associates Profit before Tax & Minority Interests Less: Tax & Minority Interests Net Profit After Tax

4 Higher Net Interest Income despite Lower Margin Net Interest Income & Margin ($m) (%) % 2.19% 2.20% 2.29% 2.16% 2.14% Q03 2Q03 3Q03 4Q03 1Q04 2Q Net Interest Income Net Interest Margin 4

5 Improved Fee-based Income overshadowed by Lower Contributions from Securities and FX Dealings ($m) Non-Interest Income (Non-NII) NII) & Non-NII NII Ratio 34.2% 35.3% 35.1% 35.9% 33.3% (%) % Q03 2Q03 3Q03 4Q03 1Q04 2Q Fee & Commission Other Income Non-NII / Total Income Ratio 5

6 Continue Disciplined Costs Management ($m) Operating Expenses & Expense-to-Income Ratio (%) % 34.4% 35.7% 34.8% 32.8% 37.2% Q03 2Q03 3Q03 4Q03 1Q04 2Q04 Staff Costs Other Operating Expenses Expense-to-Income Ratio 0.0 6

7 Reduced Provision Charges ($m) 200 Provisions Charged to Income Statement Q03 2Q03 3Q03 4Q03 1Q04 2Q04 7

8 Higher YTD Cash ROE from Profit Growth ($m) (%) % 12.0% % 9.4% 10.3% 10.9% Q03 2Q03 3Q03 4Q03 1Q04 2Q Net Profit After Tax YTD Cash ROE 8

9 Improved Earnings Per Share ( ) Earnings Per Share (EPS) Cash EPS EPS Q03 2Q03 3Q03 4Q03 1Q04 2Q04 9

10 Loans Demand Relatively Stable ($b) Gross Customer Loans Jun-03 Sep-03 Dec-03 Mar-04 Jun-04 Individual Institutional 10

11 Growth in Customer Deposits ($b) Customer Deposits % of Total Deposits Jun-03 Sep-03 Dec-03 Mar-04 Jun % 78.5% 78.8% 76.2% 76.5% 11

12 Lower Loans / Deposits Ratio (%) Loans / Deposits Ratio Jun-03 Sep-03 Dec-03 Mar-04 Jun-04 12

13 Decline in Non-Performing Loans (NPLs) Total NPLs ($m) 5,393 5,343 5,160 4,962 4,852 ($m) 7,000 6, % 8.4% 8.1% 7.8% 7.6% (%) ,000 4,000 3,000 3,386 3,406 3,306 3,114 3, , , ,007 1,937 1,854 1,848 1,821 Jun-03 Sep-03 Dec-03 Mar-04 Jun Doubtful & Loss Substandard NPLs (excluding debt securities) / Gross Customer Loans 13

14 Reduction in NPLs Mainly from Singapore Total NPLs ($m) 5,393 5,343 5,160 4,962 4,852 ($m) 6,000 4,000 1,709 1,640 1,630 1,604 1,637 2,000 3,684 3,703 3,530 3,358 3,215 0 Jun-03 Sep-03 Dec-03 Mar-04 Jun-04 Singapore Overseas 14

15 Improved NPLs Ratios for Most Sectors NPLs Ratios By Industry Jun-04 Dec-03 Incr / (Decr) Jun-03 Incr / (Decr) % % % pts % % pts Transport, storage and communication (1.2) 6.1 (2.3) Building and construction Manufacturing (0.2) 15.7 (3.2) Non-bank financial institutions (1.9) 9.0 (1.4) General commerce (0.2) Professionals and private individuals (0.8) 10.2 (1.4) Housing loans (0.8) 4.3 (0.8) Other NPLs* / Gross Customer Loans (0.5) 8.4 (0.8) * Excluding debt securities 15

16 Decrease in Cumulative Provisions in Tandem with the Drop in NPLs Total Provisions ($m) 3,496 3,438 3,332 3,307 3,249 ($m) 4, % 2.3% 2.3% 2.3% 2.2% (%) 2.5 3, ,069 2,013 1,910 1,886 1, , ,000 1,427 1,425 1,422 1,421 1, Jun-03 Sep-03 Dec-03 Mar-04 Jun General Provisions Specific Provisions GP / Customer Loans (net of SP) 16

17 Higher Provision Coverage against Total NPLs Cumulative Provisions / Total NPLs Ratio Cumulative Provisions / Unsecured NPLs Ratio (%) (%) Jun-03 Sep-03 Dec-03 Mar-04 Jun Jun-03 Sep-03 Dec-03 Mar-04 Jun-04 17

18 Strong Capital Position Capital Adequacy Ratio ($b) (%) * Risk Weighted Assets Jun-03 Sep-03 Dec-03 Mar-04 Jun Risk Weighted Assets Total CAR Tier 1 CAR * Including the US$1 billion 4.50% Subordinated Notes due

19 Continue to Reward Shareholders with High Dividends (%) % 40 40% 30 25% 25% 25% % 15% 15% 20% 20% Dividend Amount $316m $426m $720m $748m $252m Dividend Payout Ratio 34.6% 46.0% 71.6% 62.2% 35.7% Interim Final Dividend in Specie 19

20 In Summary 1H04 1H03 Incr / (Decr) 2Q04 2Q03 Incr / (Decr) Net Profit After Tax $705m $501m 40.5% $347m $239m 45.6% ROE (excluding goodwill) 12.0% 9.4% 2.6% pt 11.9% 9.0% 2.9% pt Expense-to-Income Ratio 34.9% 34.1% 0.8% pt 37.2% 34.4% 2.8% pt NPLs * /Gross Customer Loans 7.6% 8.4% (0.8)% pt 7.6% 8.4% (0.8)% pt Dividend Rate - Interim 20.0% 20.0% % 20.0% - * Excluding debt securities 20