UOB Group First Half 2009 Briefing. Financial Highlights. Lee Wai Fai Chief Financial Officer. 5 August 2009

Transcription

1 UOB Group First Half 2009 Briefing Financial Highlights Lee Wai Fai Chief Financial Officer 5 August 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 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. This material should be considered with 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. 1 Singapore Company Reg No Z

2 Strong Operating Profit Growth Net interest income 1,857 Non-interest income 985 Total income 2,842 Less: Total expenses 1,011 Operating profit 1,831 Less: Intangible assets amortised 5 Individual impairment - loans 320 Individual impairment - other assets 27 Collective impairment 495 1, ,690 1,015 1, / (-) (0.4) 9.3 (8.2) (67.5) Add: Share of profit of associates (26.1) Less: Tax & minority interests (55.4) Net Profit After Tax (NPAT) 880 1,130 (22.1) NPAT growth at constant FX rate (21.4) 2

3 Profit Up 15.0 QoQ 2Q09 1Q09 + / (-) 2Q08 + / (-) Net interest income (4.4) Non-interest income Total income 1,458 1, , Less: Total expenses Operating profit Less: Intangible assets amortised (3.4) Individual impairment loans (11.1) Individual impairment other assets (7) 34 (121.5) 51 (114.5) Collective impairment Add: Share of profit of associates (7.6) Less: Tax & minority interests (72.2) 156 (79.7) NPAT (21.7) NPAT growth at constant FX rate 15.0 (21.3) 3

4 Higher Net Interest Income and Margin YoY Net Interest Income and Margin nd Half 1,386 1,458 1, st Half 1,324 1,523 1,725 1, Q08 3Q08 4Q08 1Q09 2Q09 Net Net Interest Income (NII) (NII)() () NII NII from from Loans () () NII NII from from Interbank & Securities () () Net Net Interest Margin () () Loan Margin () () Interbank & Securities Margin () () 4

5 Strong Non-Interest Income Non-Interest Income (Non-NII) and Non-NII Ratio H 2H H 2H H 2H H Q08 3Q08 4Q08 1Q09 2Q09 Fee Fee Income Income () () Other Other Non-Interest Income Income () () Fee Fee Income Income // Total Total Income Income Ratio Ratio () () Non-NII Non-NII // Total Total Income Income Ratio Ratio () () 5

6 Disciplined Cost Management Operating Expenses and Expense / Income Ratio nd Half 921 1,043 1, st Half ,015 1, Q08 3Q08 4Q08 1Q09 2Q09 Operating Expenses () IT IT Expenses () Expense // Income Ratio () () 6

7 Prudent Provisioning Policy Impairment Charges on Loans 19 bp 18 bp 47 bp 33 bp 87 bp 63 bp 57 bp 41 bp 84 bp 75 bp 66 bp 71 bp 90 bp 60 bp 2 nd Half 1 st Half bp bp Q08 3Q08 4Q08 1Q09 2Q09 Individual Impairment Charges on on Loans () Individual Impairment Charges on on Loans // Average Gross Customer Loans (basis points) ** Total Impairment Charges on on Loans // Average Gross Customer Loans (basis points) ** 7 * On annualised basis

8 Performance By Business Segment Segment Operating Profit * + / (-) 2006 PFS 25 Other (3) Personal Financial Services (PFS) (9.1) GMIM 36 Institutional Financial Services (IFS) Global Markets & Investment Mgt (GMIM) IFS 42 Other (54) 108 (150.0) Total 1,831 1, PFS 30 Other 6 GMIM 21 IFS 43 * Before amortisation and impairment charges 8

9 Strong Contribution From Singapore At constant + / (-) FX rate Singapore 70 Operating Profit * Malaysia 11 Thailand 4 Singapore 1,274 1, Indonesia 5 Overseas Greater China 3 Malaysia Other 7 Thailand Indonesia (13.5) 81.0 (12.8) 99.4 Greater China Singapore 71 Other (13.3) (8.4) Malaysia 11 Total 1,831 1, Thailand 5 Indonesia 3 Greater China 1 Other 9 * Before amortisation and impairment charges 9

10 Increased NPA amid Global Economic Downturn NPA () 1,839 1,943 2,305 2,449 2,755 NPA Ratio ,547 1,629 2,062 2,185 2,476 Jun'08 Sep'08 Dec'08 Mar'09 Jun'09 Loans () () Debt Debt securities () () 10

11 Higher NPL Reflecting Difficult Economic Conditions NPL () 1,547 NPL Ratio * 1.5 1, , , , Jun'08 Sep'08 Dec'08 Mar'09 Jun'09 Singapore Malaysia Thailand Indonesia Greater China Other 11 * Debt securities and contingent assets are excluded from the computation.

12 Adequate Impairment Coverage Total Impairment () 2,247 2,415 2,548 2,577 2, ,008 1,068 1,165 1,366 1,442 1,540 1,509 1,648 Jun'08 Sep'08 Dec'08 Mar'09 Jun'09 Collective Impairment () () Individual Impairment () () Cumulative Impairment // Total NPA NPA () () Cumulative Impairment // Unsecured NPA NPA () () 12

13 Liquidity Preserved Customer Loans, Deposits and L/D Ratio Jun'08 Sep'08 Dec'08 Mar'09 Jun'09 Net Net Customer Loans ($b) ($b) Customer Deposits ($b) ($b) Loans // Deposits (L/D) (L/D) Ratio () () 13

14 Balanced Investment Portfolio Dec 08 Mar 09 Jun 09 Jun 09 QoQ mix Singapore government securities * 8,733 12,509 13, Other government securities * 1,596 1,496 2, Investment securities 15,674 15,758 16, Debt 13,453 13,627 13, Equity 2,221 2,131 2, Total 26,003 29,763 31, ,939 * Excluding held for trading securities. 14

15 Singapore Summarised P/L 2Q09 1Q09 $ m $ m $ m $ m Net interest income 1,176 1, (4.8) Non-interest income (2.9) Total income 1,879 1, Less: Total expenses Operating profit 1,274 1, Less: Total impairment charges Add: Share of profit of associates (32.1) Net profit before tax 636 1,087 (41.5) (20.0) 15

16 Singapore Key Financial Indicators 2Q09 1Q09 pt pt Net interest margin (0.04) Non-NII / Total income (4.2) Expense / Total income Customer loans (net) $ m 63,678 62, ,678 63,928 (0.4) Loans / Deposits (0.6) NPL ratio

17 Malaysia Summarised P/L 2Q09 1Q09 RM m RM m RM m RM m Net interest income (0.8) (4.1) Non-interest income (12.0) Total income (6.8) Less: Total expenses (3.3) (4.1) Operating profit (8.1) Less: Total impairment charges (26.6) Add: Share of profit of associates (100.0) Net profit before tax (16.7) Net profit before tax (S) (17.1) 17

18 Malaysia Key Financial Indicators 2Q09 1Q09 pt pt Net interest margin (0.07) (0.20) Non-NII / Total income (1.9) Expense / Total income (4.1) Customer loans (net) RM m 27,578 27, ,578 27,640 (0.2) Loans / Deposits (10.0) NPL ratio

19 Thailand Summarised P/L 2Q09 1Q09 THB m THB m THB m THB m Net interest income 3,454 3,647 (5.3) 1,666 1,788 (6.8) Non-interest income 1,477 1,725 (14.4) (9.2) Total income 4,931 5,372 (8.2) 2,369 2,562 (7.5) Less: Total expenses 3,207 3,395 (5.5) 1,526 1,681 (9.2) Operating profit 1,724 1,977 (12.8) (4.3) Less: Total impairment charges 627 1,069 (41.3) (44.8) Add: Share of profit of associates (2) 10 (120.0) (3) 1 (400.0) Net profit before tax 1, Net profit before tax (S)

20 Thailand Key Financial Indicators 2Q09 1Q09 pt pt Net interest margin (0.22) (0.29) Non-NII / Total income (2.1) (0.5) Expense / Total income (1.2) Customer loans (net) THB m 135, ,349 (11.3) 135, ,202 (3.7) Loans / Deposits (12.0) NPL ratio

21 Indonesia Summarised P/L 2Q09 1Q09 IDR b IDR b IDR b IDR b Net interest income (3.7) Non-interest income (0.5) Total income 1, (2.8) Less: Total expenses Operating profit (16.3) Less: Total impairment charges (81.8) Net profit before tax (2.5) Net profit before tax (S)

22 Indonesia Key Financial Indicators 2Q09 1Q09 pt pt Net interest margin (0.10) Non-NII / Total income Expense / Total income (12.7) Customer loans (net) IDR b 22,448 20, ,448 23,311 (3.7) Loans / Deposits (19.7) (2.1) NPL ratio

23 China Summarised P/L 2Q09 1Q09 CNY m CNY m CNY m CNY m Net interest income (20.4) (10.5) Non-interest income * (73.2) Total income (30.1) (3.7) Less: Total expenses (13.0) Operating profit (42.9) (7.7) Less: Total impairment charges 6 31 (80.6) - 6 (100.0) Add: Share of profit of associates 2 - NM 2 - NM Net profit before tax (33.3) Net profit before tax (S) (25.2) * Excluding revaluation gain/loss on the USD capital injection 23

24 China Key Financial Indicators 2Q09 1Q09 pt pt Net interest margin (1.05) (0.10) Non-NII / Total income (11.3) Expense / Total income Customer loans (net) CNY m 9,950 10,399 (4.3) 9,950 10,412 (4.4) Loans / Deposits (169.6) NPL ratio

25 Strong Capital Position Capital Adequacy Ratios Total CAR Tier 1 CAR ` Jun'08 Sep'08 Dec'08 Mar'09 Jun'09 Tier 1 Capital 11,630 13,177 12,456 13,127 13,223 RWA 114, , , , ,821 25

26 High Dividend Payout Ratio Net Net dividend per per ordinary share ( ) ( ) Interim Final Special Interim dividend Payout amount () Payout ratio ()

27 In Summary Strong operating profit growth Higher NIM YoY Disciplined cost management Key Singapore market remains stable Increased NPA amid economic downturn, adequate provisioning Full provision for CDO portfolio Strong CAR and improved AFS reserve High dividend payout ratio 27