UOB Group Full Year / Fourth Quarter 2005 Results Briefing

Transcription

1 UOB Group Full Year / Fourth Quarter 2005 Results Briefing FINANCIAL HIGHLIGHTS Lee Wai Fai Chief Financial Officer 23 February 2006 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. Singapore Company Reg No Z 1

2 Agenda 11 Review of Financial Performance 22 Business & Geographical Segments 33 Loans, Deposits & Asset Quality 44 Capital Management 2

3 Profit Growth of 17.7% Achieved in Incr / (Decr) $m $m $m % Net Interest Income 2,348 2, Non-Interest Income 1,414 1, Total Income 3,761 3, Less : Operating Expenses 1,424 1, Operating Profit * 2,337 2, Less : Intangible Assets Amortised / Impaired (154) (71.9) Other Impairment Charges (35) (16.9) Add : Share of Profit of Associates (207) (67.5) Less : Tax & Minority Interests Net Profit after Tax 1,709 1, * Before amortisation and impairment charges 3

4 Higher Operating Profit in 4Q05 4Q05 3Q05 + / (-) 4Q04 + / (-) $m $m % $m % Net Interest Income Non-Interest Income Total Income 1, Less : Operating Expenses Operating Profit * Less : Intangible Assets Amortised / Impaired 2 - nm 59 (96.5) Other Impairment Charges (34.8) Add : Share of Profit of Associates (24.2) 184 (87.4) Less : Tax & Minority Interests Net Profit after Tax (6.7) * Before amortisation and impairment charges 4 nm: not meaningful

5 Higher Net Interest Income and Loan Margin Net Interest Income and Margin 3.13% 3.12% 3.01% 2.22% 2.25% 2.10% 3.18% 1.99% 2.99% 3.12% 3.21% 3.08% 3.24% 2.05% 2.06% 1.97% 1.93% 1.96% 2,128 2,071 2,155 2, Q04 1Q05 2Q05 3Q05 4Q05 Net Net Interest Income ($m) Average Interest Margin (%) (%) Loan Margin (%) (%)** * Computed based on loan yields less cost of deposits 5

6 Non-Interest Income Up 28.1% against 2004 Non-Interest Income (Non-NII) and Non-NII Ratio 29.9% % 1, % 1, % 1, % 35.2% % % % Q04 1Q05 2Q05 3Q05 4Q05 Fee Fee Income Income ($m) ($m) Other Other Income Income ($m) ($m) Non-NII Non-NII // Total Total Income Income Ratio Ratio (%) (%) 6

7 Stable Operating Expenses Operating Expenses and Expense / Income Ratio 35.4% 34.7% 1,074 1, % 37.9% 1,424 1, % % % 38.1% % Q04 1Q05 2Q05 3Q05 4Q05 Operating Expenses ($m) IT IT Expenses ($m) Expense // Income Ratio (%) (%) 7

8 Individual Impairment Charges on Loans Individual Impairment on Loans Charged to Profit & Loss Account 68 bp 55 bp 35 bp 31 bp 48 bp 36 bp 41 bp 40 bp bp Q04 1Q05 2Q05 3Q05 4Q05 Individual Impairment Charges Individual Impairment Charges on on Loans // on on Loans ($m) Gross Customer Loans (basis points) ** * On annualised basis for quarters 8

9 Profit Contribution by Business Segment Business Segment Incr/(Decr) Segment Pre-tax Profit * $m $m % Individual Financial Services Institutional Financial Services 1, Global Treasury Asset Management (11.3) Other (8.4) Total 2,211 1, * Before unallocated expenses, amortisation / impairment of intangible assets, and share of profit of associates 2005 Individual : 25 % Other : 9 % Asset Management : 5 % Global Treasury : 14 % 2004 Individual : 27 % Other : 11 % Asset Management : 8 % Global Treasury : 12 % Institutional : 47% Institutional : 42 % 9

10 Higher Operating Profit Contribution From Overseas Operations Geographical Segment Incr/(Decr) Operating Profit * $m $m % 2005 Singapore : 73% Singapore (including ACU) 1,706 1, Other ASEAN countries Other Asia-Pacific countries (13.7) Rest of the world Operating Profit 2,337 2, ASEAN : 17% Asia-Pacific : 4% Rest of the world : 6% 2004 Singapore : 75% ASEAN : 16% Asia-Pacific : 5% Rest of the world : 4% * Before amortisation and impairment charges 10

11 Measured Growth in Loans and Deposits Customer Loans, Deposits and L/D Ratio 81.4 % 80.1 % 80.3 % 78.9 % 78.5 % Dec'04 Mar'05 Jun'05 Sep'05 Dec'05 Net Net Customer Loans *($b) Customer Deposits ($b) Loans // Deposits (L/D) Ratio (%) (%) * included amount sold under Repo 11

12 Decrease in NPLs across Major Countries Group: NPLs ($m) NPL Ratio 5,484 4,728 4,563 4,290 3, % 6.9% 6.7% 6.2% 5.6% 492 1, , ,099 1, ,533 2, , ,955 Dec'04 Mar'05 Jun'05 Sep'05 Dec'05 Singapore Malaysia Thailand Other 12

13 Impairment Coverage Remains Strong Total Impairment ($m) 3,724 3,267 3,110 2,946 2, % 69.1% 68.2% 68.7% 69.0% 2,354 1,895 1,794 1,628 1,444 1,370 1,372 1,316 1,318 1,270 Dec'04 Mar'05 Jun'05 Sep'05 Dec'05 Collective Impairment ($m) Individual Impairment ($m) Cumulative Impairment // Total NPLs (%) (%) 13

14 Strong Capital Position Capital Adequacy Ratios (CAR) 15.6% 15.4% 15.0% 15.0% 16.1% 11.0% 10.9% ` 10.1% 9.9% 11.0% Dec'04 Mar'05 Jun'05 Sep'05 Dec'05 Total CAR Tier 1 CAR 14

15 Higher Dividends Dividend in Specie Final Interim 28.5 cts 18.8 cts 40 cts 40 cts 40 cts 25 cts 15 cts 20 cts 20 cts 20 cts Dividend in Specie $230m - - $351m Cash Dividend $490m $748m $744m $738m Share Buy-back - - $500m - Total Utilization of Profit $720m $748m $1,244m $1,089m % to NPAT 72% 62% 86% 64% 15

16 In Summary Net profit grew 17.7% to reach $1,709 million in 2005 ROE increased to 12.9% in 2005 from 12.4% in 2004 Expense-to-income ratio is under control at 37.9% in 2005 NPL ratio improved to 5.6% in 2005 from 8.0% in 2004 Dividend payout is 88.5 cents per share 16