UOB Group First Half / Second Quarter 2005 Results Briefing

Transcription

1 UOB Group First Half / Second Quarter 2005 Results Briefing Presentation by Lee Wai Fai Chief Financial Officer 29 July Singapore Company Reg No Z

2 2 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.

3 3 Agenda Review of Financial Performance Business & Geographical Segments Loans, Deposits & Asset Quality Capital Management

4 4 Profit Growth of 15.6% Achieved in 1 st Half H05 1H04 Incr / (Decr) $m $m $m % Net Interest Income 1,156 1, Non-Interest Income Total Income 1,807 1, Less : Operating Expenses Opr. Profit before Goodwill & Other Impairment 1,140 1, Less : Goodwill Written-off / Amortised (43) (42.4) Impairment Charges (16) (16.6) Opr. Profit after Goodwill & Other Impairment 1, Share of Profit of Associates (30) (39.2) Profit before Tax & Minority Interests 1, Less : Tax & Minority Interests Net Profit after Tax NPAT excluding BOA

5 Higher Profit in 2 nd Quarter Q05 1Q05 2Q04 $m $m % $m % Net Interest Income (1.6) Non-Interest Income Total Income Less : Operating Expenses Opr. Profit before Goodwill & Other Impairment (3.4) Less : Goodwill Written-off / Amortised 56 2 nm Impairment Charges (78.1) 36 (59.9) Opr. Profit after Goodwill & Other Impairment (4.5) Share of Profit of Associates (30.7) Profit before Tax & Minority Interests (0.9) Less : Tax & Minority Interests (6.4) Net Profit after Tax NPAT excluding BOA nm: not meaningful

6 6 Higher Net Interest Income despite Lower Average Interest Margin Net Interest Income and Margin 3.13% 3.12% 3.01% 3.16% 3.00% 2.93% 2.99% 3.12% 3.21% 2.22% 2.25% 2.10% 2.02% 2.14% 2.05% 2.05% 2.06% 1.97% 2 nd Half 1,039 1,043 1,099 1 st Half 1,089 1,028 1,056 1, Q04 3Q04 4Q04 1Q05 2Q05 Net Net Interest Income ($m) Average Interest Margin (%) (%) Loan Margin (%) (%)** * Computed based on loan yields less cost of deposits

7 7 Higher Non-Interest Income Non-Interest Income (Non-NII) and Non-NII Ratio 34.5% 33.9% 29.9% % % % % 34.6% 35.2% H 2H H 2H H 2H H Q04 3Q04 4Q04 1Q05 2Q05 Fee Fee Income Income ($m) ($m) Other Other Income Income ($m) ($m) Non-NII Non-NII // Total Total Income Income Ratio Ratio (%) (%)

8 8 Higher Operating Expenses Operating Expenses and Expense/Income Ratio 35.4% 34.7% 37.6% 36.9% 36.2% 39.0% 42.3% 35.5% 38.3% 2 nd Half st Half Q04 3Q04 4Q04 1Q05 2Q05 Operating Expenses ($m) IT IT Expenses ($m) Expense/ Income Ratio (%) (%)

9 9 Individual Impairment Charges on Loans Individual Impairment on Loans Charged to Profit & Loss Account 2 nd Half 68 bp bp 34 bp 38 bp 46 bp 24 bp 48 bp 36 bp 41 bp st Half Q04 3Q04 4Q04 1Q05 2Q05 Individual Impairment Charges Individual Impairment Charges on on Loans // on on Loans ($m) Gross Customer Loans (basis points) ** * On annualised basis

10 10 Profit Contribution by Business Segment Business Segment 1H05 1H04 Incr/(Decr) Segment Profit Before Tax $m $m % Individual Financial Services (7.6) Institutional Financial Services Global Treasury Asset Management (27.0) Other Total Segment Profit 1, Unallocated Income, Expenses & Goodwill (15.6) Profit Before Tax 1, H05 Individual : 24 % Other : 16 % Asset Management : 5 % Global Treasury : 14 % 1H04 Individual : 28 % Other : 14 % Asset Management : 8 % Global Treasury : 11 % Institutional : 41 % Institutional : 39 %

11 11 Higher Profit Contribution from Overseas Operations Geographical Segment 1H05 1H04 Incr/(Decr) Profit Before Tax $m $m % 1H05 Singapore : 76% Singapore (including ACU) Other ASEAN countries Other Asia-Pacific countries (3.4) Rest of the world Profit before Goodwill 1,106 1, Less : Goodwill Written-off / Amortised (58) (101) (42.4) Profit before Tax 1, ASEAN : 12% Rest of the world : 7% 1H04 Singapore : 80% ASEAN : 10% Rest of the world : 4% Asia-Pacific : 5% Asia-Pacific : 6%

12 12 Slight Growth in Loans and Deposits Customer Loans, Deposits and L/D Ratio 83.6% 83.3% 81.3% 80.1% 80.3% Jun'04 Sep'04 Dec'04 * Mar'05 Jun'05 Net Net Customer Loans ($b) Customer Deposits ($b) Loans // Deposits (L/D) Ratio (%) (%) * Restated upon adoption of FRS39 on 1 January 2005

13 13 Decrease in NPLs across Major Countries Group: NPLs ($m) NPL Ratio 4,852 5,866 5,199 4,728 4, % 8.5% 7.6% 6.9% 6.7% , , ,099 1, ,215 3,182 2,788 2,533 2,460 Jun'04 Sep'04 Dec'04 * Mar'05 Jun'05 Singapore Malaysia Thailand Other * Restated upon adoption of FRS39 on 1 January 2005

14 14 Impairment Coverage Remains Strong Total Impairment ($m) 3,249 3,808 3,573 3,267 3, % 64.9% 68.7% 69.1% 68.2% 2,437 1,888 2,203 1,895 1,794 1,361 1,371 1,370 1,372 1,316 Jun'04 Sep'04 Dec'04 * Mar'05 Jun'05 Collective Impairment ($m) Individual Impairment ($m) Cumulative Impairment // Total NPLs (%) (%) * Restated upon adoption of FRS39 on 1 January 2005

15 15 Strong Capital Position Capital Adequacy Ratios (CAR) 13.6% 16.1% 15.5% 15.4% 15.0% 12.8% 11.3% 10.8% 10.9% 10.1% Jun'04 Sep'04 Dec'04 * Mar'05 Jun'05 Total CAR Tier 1 CAR * Restated upon adoption of FRS39 on 1 January 2005

16 16 Maintain High Dividend Rate Dividend in Specie Final 18.8% 25% 40% 40% 28.5% Interim 15% 20% 20% 20% H05 Dividend in Specie $230m - - $351m Cash Dividend $490m $748m $744m $246m Share Buy-back - - $500m - Total Utilization of Profit $720m $748m $1,244m $597m % to NPAT 72% 62% 86% 73%

17 17 In Summary NPAT grew 15.6% to reach $815 million in 1 st Half 2005 ROE (excluding goodwill) increased to 12.8% in 1 st Half 2005 from 12.0% in 1 st Half 2004 Expense-to-income ratio increased 2.5% points to 36.9% in 1 st Half 2005 NPL ratio improved to 6.7% in 1 st Half 2005 from 7.6% in 1 st Half 2004 Dividend payout ratio is 73% of net profit