UOB - Premier Regional Bank

Transcription

1 UOB - Premier Regional Bank 2004 Group Results Briefing Address by Kuek Tong Au Executive Vice President Corporate Services 24 February 2005 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.

2 Agenda 11 Review Of Financial Performance 22 Business & Geographical Segments 33 Loans, Deposits & Asset Quality 44 Performance of Key Regions 55 Capital Position 2

3 Another Year of Record Profit Incr / (Decr) $m $m $m % Net Interest Income 2,155 2, Non-Interest Income 1,104 1, Total Income 3,259 3, Less: Operating Expenses 1,227 1, Operating Profit before Goodwill and Provisions 2,032 2,064 (32) (2) Less: Goodwill Amortisation Provisions (153) (42) Operating Profit after Goodwill and Provisions 1,610 1, Share of Profit of Associates Profit before Tax & Minority Interests 1,917 1, Less: Tax & Minority Interests Net Profit After Tax 1,452 1,

4 Higher Profit in 4 th Quarter Q04 $m 4Q03 $m Incr / (Decr) % 3Q04 $m Incr / (Decr) % Net Interest Income Non-Interest Income Total Income Less: Operating Expenses Operating Profit before Goodwill and Provisions (8) Less: Goodwill Amortisation Provisions (1) NM Operating Profit after Goodwill and Provisions (28) 439 (26) Share of Profit of Associates Profit before Tax & Minority Interests Less: Tax & Minority Interests Net Profit After Tax NM denotes Not Meaningful. 4

5 Higher Net Interest Income despite Lower Margin Net Interest Income and Margin 2.22% 2.25% 2.10% 2.29% 2.16% 2.14% 2.05% 2.05% 2,128 2,071 2, Q03 1Q04 2Q04 3Q04 4Q04 Net Interest Income ($m) Net Interest Margin (%) 5

6 Higher Non-Interest Income mainly from Fee Income Non-Interest Income (Non-NII) NII) and Non-NII NII Ratio 34.5% 33.9% 29.9% 1,089 1, % 35.9% 31.3% 33.5% 34.6% Q03 1Q04 2Q04 3Q04 4Q04 Fee Income ($m) Other Income ($m) Non-NII / Total Income Ratio (%) 6

7 Fee Income Continues to Grow Fee Income and Fee Income Ratio 16.5% 18.6% 21.7% % 20.8% 19.6% 22.3% 23.7% Q03 1Q04 2Q04 3Q04 4Q04 Fee Income ($m) Fee Income / Total Income Ratio (%) 7

8 Operating Expenses Increased mainly due to acquisition of BOA Operating Expenses and Expense / Income Ratio 37.6% 35.4% 34.7% 36.6% 1,227 1,074 1, % % % % 37.4% % 40.1% , Q03 1Q04 2Q04 3Q04 4Q04 Operating Expenses ($m) BOA Expenses ($m) Expense / Income Ratio (%) Ratio exclude BOA (%) 8

9 Year-on-Year Provision Charges Reduced Provisions Charged to Profit & Loss Account 75bp 58bp bp (1) (63) (49) Q03 1Q04 2Q04 3Q04 4Q04 Provision Charges ($m) Provision Charges/Gross Customer Loans (bp) Specific Provisions ($m) General Provisions ($m) 9

10 Higher ROE Achieved NPAT and ROE (excluding goodwill) 9.5% 10.9% 12.4% 1, % 12.1% 11.9% 12.7% 12.8% 1,202 1, Q03 1Q04 2Q04 3Q04 4Q04 Net Profit After Tax ($m) ROE (excluding goodwill) (%) 10

11 Profit Contribution by Business Segment Business Segment Incr / (Decr) Segment Profit Before Tax $m $m % Individual Financial Services Institutional Financial Services Global Treasury (12) 2004 Individual 27% 42% 12% 7% 12% Other Institutional Global Treasury Asset Management Asset Management (5) 2003 Institutional Other (14) Total 1,887 1, % 15% Global Treasury Individual 24% 14% 8% Asset Management Other 11

12 Profit Contribution by Geographical Segment Geographical Segment Incr / (Decr) Profit Before Tax $m $m % Singapore (including ACU) 1,680 1, Other ASEAN countries Singapore 79% 4% 4% 13% ASEAN Rest of the world Asia Pacific Other Asia-Pacific countries (9) Rest of the world ,131 1, Goodwill amortisation (214) (202) 6 Total 1,917 1, Singapore 76% 4% 6% Rest of the world 14% Asia Pacific ASEAN 12

13 Loans and Deposits Expansion largely from acquisition of BOA Net Customer Loans Customer Deposits and L/D Ratio ($b) ($b) % % 84.9% % % 13.1% Dec-01 Dec-02 Dec-03 Dec-04 Dec-01 Dec-02 Dec-03 Dec-04 BOA Loans / Deposits (L/D) Ratio 13

14 Increase in NPLs attributed to acquisition of BOA Total NPLs ($m) 5,968 5,679 5,160 5,484 2,149 1,744 1,630 1,030 1,505 3,819 3,935 3,530 2,949 Dec-01 Dec-02 Dec-03 Dec-04 Singapore Overseas BOA 14

15 NPL Ratio Continued to Improve Total NPLs ($m) 5,968 5,679 5,160 5,484 4, % 9.0% 8.1% 8.0% 6.9% 3,851 3,619 3,306 3,347 2, ,620 1,613 1,458 1, ,362 Dec-01 Dec-02 Dec-03 Dec-04 Dec-04 (excl. BOA) Loss Doubtful Substandard NPL (excluding debt securities) / Gross Customer Loans 15

16 Increase in Cumulative Provisions in Tandem with Higher NPLs Total Provisions ($m) 3,334 3,504 3,332 3,724 3, % 2.4% 2.3% 2.1% 2.1% 1,899 2,079 1,910 2,354 1,826 1,425 1,435 1,422 1,370 1,310 Dec-01 Dec-02 Dec-03 Dec-04 Dec-04 (excl. BOA) 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 136.6% 138.3% 141.4% 146.3% 138.6% 55.9% 61.7% 64.6% 70.4% 67.9% Dec-01 Dec-02 Dec-03 Dec-04 Dec-01 Dec-02 Dec-03 Dec-04 Ratio excluding BOA 17

18 UOBM Group: Key Indicators (MYR m) (S$ m) Incr/(Decr) % Profit after Tax ROE - % (1.4)% pt Expense / Income Ratio - % % pt Customer Loans (Net) 16,221 14, ,974 6,560 Customer Deposits 15,930 13, ,849 6,103 Loans / Deposits Ratio - % (5.7)% pt Total Assets 29,039 25, ,485 11,278 18

19 Thailand: Key Indicators (THB m) (S$ m) Incr/(Decr) % Profit after Tax ROE - % % pt Expense / Income Ratio - % (7.0)% pt Customer Loans (Net) 147,180 36, ,178 1,574 Customer Deposits 172,091 45, ,224 1,968 Loans / Deposits Ratio - % % pt Total Assets 216,468 57, ,087 2,457 19

20 Strong Capital Position Capital Adequacy Ratio (CAR) * 18.5% 15.3% 15.2% 15.6% 11.8% 12.2% 13.2% 11.0% Dec-01 Dec-02 Dec-03 Dec-04 Total CAR Tier 1 CAR * Computed based on revised MAS guidelines for 2003 and 2004, and BIS guidelines for 2001 and

21 In Summary... NPAT grew 21% to reach $1,452 million in 2004 ROE (excluding goodwill) increased to 12.4% from 10.9% in 2003 Expense-to-income ratio increased 2.9% points to 37.6% in 2004 NPL ratio declined to 8.0% in 2004 from 8.1% in