UOB Group First Half 2014

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1 UOB Group First Half 2014 Strong Fundamentals with Record Earnings, Managing Risks for Stable Growth Wee Ee Cheong Deputy Chairman and Chief Executive Officer 31 July 2014 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 Achieving Record Earnings in 1H 2014 Profit: New high of S$1.6bn, backed by 2 quarters of record earnings. Driven by healthy loan growth and non-interest income Net interest income at new high Loans: Broad-based 6.1% YTD growth across industries and countries NIM: Stable over past few quarters Non-interest income: Lower fees offset by improved trading and investment income. Continue to build fee capabilities Costs: Well-controlled while continuing to invest in building long-term capabilities Prudent balance sheet management: Resilient asset quality, strong capital and liquidity position Dividend: Interim dividend of 20 cents per share 2

3 Focusing on Preserving Balance Sheet Strength Building customer franchise Focusing on target segments within key markets Focus on stable funding base and optimising funding sources in 1H 2014 Increased commercial paper programme size Issuances: Commercial papers (S$12.1bn) and senior debt (>S$3bn) as at June 14 Tapped overseas branches for corporate deposits Proactive in capital management Two issuances of Basel III Tier 2 securities (US$800mn and S$500mn) 3 Investments 9% Government 6% Interbank 8% Cash + Central Bank 11% Shareholders Equity 9% Bank 15% Others 11% Debts Issued Others 3% 8% Strengthening our Balance Sheet Customer Loans 55% Customer 65% Government 7% Interbank 10% Cash + Central Bank 10% Others Investments 5% 4% Customer Loans 64% 2008 ASSETS 1H 2014 Debts Issued 8% Shareholders' Equity 9% Bank 6% LIABILITIES Others 3% Customer 74%

4 Capitalising on Rising Intra-regional Flows Robust growth in customer base and cross-border loans over last 3 years Growing Number of Intra-Regional Deals Strengthened in-market teams and capabilities to serve customers regionalisation needs 1 Loans (S$) 51% Customers (number) FY10 1H14 Broadening and deepening product capabilities to drive cross-sell activities and reinforce fee income growth Growing Overseas Wholesale Profit Contribution 18% On track to achieve 50% target for overseas wholesale profit contribution by % 38% 36% 62% 64% 43% 57% 3% 40% 40% 60% 60% H13 1H14 4 Singapore Overseas

5 Making Good Progress in Transaction Banking Offer end-to-end solutions ranging from cash, trade and supply chain financing across our network Strong increase in trade loans, spurred by intraregional trades 49% 51% Trade Loans 89% 37% 41% 44% 52% 59% 56% 36% 64% 14% 26% 33% 74% 67% 70% 10% 33% 70% 67% Growing corporate deposits by leveraging strong credit ratings and product bundling/solutions Industry recognition with 29 awards across the region in 1H2014 Transaction Banking Revenue Breakdown by Cash / Trade Breakdown by Geography 14% 52% 52% 52% 28% 47% 51% 53% 49% H14 47% 46% 5 Singapore Overseas

6 Capturing Rising Asian Consumer Affluence From FY2010 to June 2014, Grew wealth management AUM from $48bn to $76bn Expanded customer base from 100,000 to 183,000 Increased regional wealth management footprint from 29 to 50 wealth management centres Growing Regional Wealth Management Profit Contribution 23% 27% 27% 26% 26% 31% H13 1H14 Singapore Region Bancassurance consistently performing well ahead of joint targets 6 Strong Growth for Annual Premium Equivalent (APE) 61% 37% 40% 63% 60% 60% 39% 61% 36% 64% 34% 36% 66% 64% H13 1H14 Singapore Region Joint Targets 22% above joint target

7 Looking Ahead Operating environment likely to be more moderate, with slower but more sustainable growth Works well for commercial banks that focus on building long-term customer franchise Remain committed to our key regional markets and delivering on our longterm strategy Well-positioned to navigate evolving banking landscape with our strong balance sheet, disciplined risk management and focus on fundamentals 7