UOB Group Full Year Financial Highlights Lee Wai Fai Chief Financial Officer 25 February 2011 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. 193500026Z
Record Profit of $2.7 billion Strong Fee Income Offset Pressure on NII Net interest income Fee and commission income Other non-interest income Total income Less: Total expenses Operating profit Less: Intangible assets amortised Individual impairment loans Individual impairment other assets Collective impairment Add: Share of profit of associates Less: Tax & minority interests Net Profit After Tax (NPAT) 3,532 1,163 1,105 5,800 2,258 3,542 11 190 48 236 139 501 2,696 3,674 976 755 5,405 2,074 3,331 10 604 11 506 107 404 1,902 (3.9) 19.1 46.3 7.3 8.8 6.3 6.5 (68.6) >100.0 (53.4) 30.5 23.9 41.8 2
Quarter Profit Higher at $706 million 4Q10 3Q10 4Q09 Net interest income 865 883 (2.1) 892 (3.0) Fee and commission income 310 284 9.2 247 25.5 Other non-interest income 390 301 29.7 103 >100.0 Total income 1,565 1,468 6.6 1,242 26.0 Less: Total expenses 620 555 11.6 554 12.0 Operating profit 945 912 3.6 688 37.2 Less: Intangible assets amortised 3 3 (3.4) 3 (1.6) Individual impairment loans 128 44 >100.0 127 1.2 Individual impairment other assets 30 10 >100.0 (23) >100.0 Collective impairment 22 80 (72.8) (59) >100.0 Add: Share of profit of associates 38 29 33.4 19 95.4 Less: Tax & minority interests 94 116 (18.7) 139 (32.1) NPAT 706 688 2.6 522 35.2 3
Lower Net Interest Margin Liquidity and Competition Contributing Factors Net Interest Income and Margin 3.21 3.09 3.02 2.88 2.04 2.27 2.36 2.09 0.56 0.93 1.21 0.88 3,576 3,674 3,532 2,980 555 686 587 365 2,615 3,020 2,987 2,945 2.92 2.28 3.04 2.25 1.18 1.04 2.99 2.14 2.84 2.07 2.68 1.91 0.86 0.87 0.76 892 900 884 883 865 167 166 141 144 137 724 734 743 740 728 2007 2008 4Q09 1Q10 2Q10 3Q10 4Q10 NII NII from from Loans () () NII NII from from Interbank & Securities () () Loan Margin () () Interbank & Securities Margin () () Net Net Interest Margin () () 4
Strong Non-Interest Income Delivered Robust Fee Income Non-Interest Income (Non-NII) and Non-NII Ratio 38.8 31.9 32.0 39.1 28.2 40.1 30.2 39.8 44.7 26.2 20.8 18.1 20.1 2,268 19.9 18.9 22.6 19.3 19.8 1,892 614 1,675 1,732 580 755 1,105 350 103 602 318 382 96 585 301 700 390 1,278 1,095 976 1,163 247 284 285 284 310 2007 2008 4Q09 1Q10 2Q10 3Q10 4Q10 Fee Fee Income Income () () Other Other Non-Interest 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
Improving Return on Risk-weighted Assets 2008 / 2008 Gross Loans 115,122 101,744 102,033 12.8 Total RWA 106,889 100,908 114,712 (6.8) Loan margin () 2.88 3.02 3.09 (0.21)pt As a of average total RWA: NII from loans + loan fee income () 3.1 3.0 2.7 0.4pt NII from loans + fee & commission income () 4.0 3.7 3.4 0.6pt 6
Expenses Well Paced Operating Expenses and Expense / Income Ratio 41.4 39.0 38.4 38.9 44.6 36.1 42.7 37.8 39.6 2,018 2,050 2,074 135 133 108 160 162 160 170 200 206 508 472 485 2,258 144 173 220 479 554 542 540 555 24 26 44 30 30 51 40 41 53 53 54 55 125 112 114 120 620 58 41 57 133 1,046 1,082 1,116 1,242 308 301 302 308 330 2007 2008 4Q09 1Q10 2Q10 3Q10 4Q10 7 Staff Staff costs () () Revenue-related expenses () () Occupancy-related expenses () () IT-related expenses () () Other operating expenses () () Expense // Income Ratio () ()
Lower Provisions from Improving Asset Quality Impairment Charges on Loans 76 bp 47 bp 59 bp 35 bp 18 bp 33 bp 18 bp 18 bp 604 324 155 190 2007 2008 62bp 50bp 35bp 24bp 43bp 18bp 46bp 16bp 4bp 3bp 127 128 44 10 8 4Q09 1Q10 2Q10 3Q10 4Q10 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) ** 8 * On annualised basis
NPL Ratio Improved to 1.8 NPL () NPL Ratio * 2,260 2.2 2,153 2.0 2,075 1.9 2,120 1.9 2,155 1.8 282 105 106 409 435 270 258 318 387 85 106 83 78 61 99 91 80 419 413 415 409 442 418 402 373 923 831 804 816 845 Dec'09 Mar'10 Jun'10 Sep'10 Dec'10 Singapore Malaysia Thailand Indonesia Greater China Other * Debt securities and contingent assets are excluded from the computation. 9
Strong Impairment Coverage Total Loan Impairment () 2,543 2,568 2,580 2,616 2,682 226.9 239.1 246.4 234.8 250.7 112.5 119.3 124.3 123.4 124.5 973 935 909 900 930 1,570 1,633 1,671 1,716 1,752 Dec'09 Mar'10 Jun'10 Sep'10 Dec'10 Collective Impairment () () Individual Impairment () () Cumulative Impairment // Total NPL NPL () () Cumulative Impairment // Unsecured NPL NPL () () 10
Loan Growth Escalates, Deposits to Keep Pace Customer Loans, Deposits and L/D Ratio 81.6 81.5 82.5 81.1 79.0 121.5 125.6 132.5 125.7 99.2 100.6 103.8 107.1 112.4 142.3 Dec'09 Mar'10 Jun'10 Sep'10 Dec'10 Net Net Customer Loans ($b) ($b) Customer Deposits ($b) ($b) Loans // Deposits (L/D) (L/D) Ratio () () 11
Loan Growth Accelerates, Regional Growth Showing Good Momentum Gross Loans Singapore 75,534 67,350 12.2 4Q10 75,534 3Q10 71,938 5.0 Regional: 31,598 25,707 22.9 31,598 29,193 8.2 Malaysia 15,278 12,120 26.1 15,278 14,425 5.9 Thailand 7,050 6,077 16.0 7,050 6,473 8.9 Indonesia 3,975 3,499 13.6 3,975 3,779 5.2 Greater China 5,295 4,011 32.0 5,295 4,515 17.3 Other 7,990 8,688 (8.0) 7,990 8,586 (6.9) Total 115,122 101,744 13.1 115,122 109,716 4.9 12
Regional Franchise Showing Results, Growth More than Doubled Singapore Operating profit Singapore 2,419 2,308 4.8 At constant FX rate 4.8 Singapore : 68 Malaysia : 13 Thailand : 4 Indonesia : 5 Regional: 883 772 14.4 12.1 Greater China : 3 Malaysia 453 361 25.5 22.6 Other : 7 Thailand Indonesia 131 186 144 172 (8.7) 8.3 (9.7) 1.5 Singapore : 69 Greater China Other 112 240 95 251 18.1 (4.4) 26.8 (3.0) Malaysia : 11 Thailand : 4 Total 3,542 3,331 6.3 5.9 Indonesia : 5 Greater China : 3 Other : 8 13
Performance by Business Segment Segment Operating profit 2006 GR : 30 Group Retail (GR) 1,047 1,068 (2.0) Other : 9 Group Institutional Financial Svc (GIFS) 1,414 1,356 4.3 GMIM : 21 GIFS : 40 Global Markets & Investment Mgt (GMIM) Other 755 326 1,093 (186) (30.9) >100.0 GR : 32 Total 3,542 3,331 6.3 GMIM : 33 GIFS : 41 Other : (6) 14
Singapore Summarised P/L 4Q10 3Q10 Net interest income 2,077 2,300 (9.7) 500 515 (2.9) Fee and commission income 715 619 15.5 186 171 9.0 Other non-interest income 938 604 55.1 349 257 35.9 Total income 3,730 3,522 5.9 1,035 942 9.8 Less: Total expenses 1,310 1,214 7.9 356 326 9.3 Operating profit 2,419 2,308 4.8 679 616 10.1 Less: Total impairment charges 250 814 (69.2) 85 80 6.3 Add: Share of profit of associates 122 100 21.1 34 26 32.1 Net profit before tax 2,290 1,594 43.7 628 562 11.7 15
Singapore Key Financial Indicators 4Q10 3Q10 pt pt Net interest margin 1.68 2.06 (0.38) 1.52 1.63 (0.11) Non-NII / Total income 44.3 34.7 9.6 51.7 45.4 6.3 Expense / Total income 35.1 34.5 0.6 34.4 34.6 (0.2) Customer loans (net) $ m 73,729 65,637 12.3 73,729 70,184 5.1 Loans / Deposits 72.0 74.1 (2.1) 72.0 72.8 (0.8) NPL ratio 1.1 1.4 (0.3) 1.1 1.1-16
Malaysia Summarised P/L 4Q10 3Q10 RM m RM m RM m RM m Net interest income 1,163 961 21.0 298 297 0.3 Fee and commission income 363 272 33.5 102 98 4.1 Other non-interest income 147 154 (4.5) 26 26 - Total income 1,673 1,387 20.6 426 421 1.2 Less: Total expenses 599 511 17.2 182 142 28.2 Operating profit 1,074 876 22.6 244 279 (12.5) Less: Total impairment charges 173 216 (19.9) 67 42 59.5 Add: Share of profit of associates 36 (4) >100.0 9 5 80.0 Net profit before tax 937 656 42.8 186 242 (23.1) Net profit before tax (S) 395 271 46.0 78 104 (25.1) 17
Malaysia Key Financial Indicators 4Q10 3Q10 pt pt Net interest margin 2.87 2.37 0.50 2.58 3.13 (0.55) Non-NII / Total income 30.5 30.7 (0.2) 30.0 29.5 0.5 Expense / Total income 35.8 36.8 (1.0) 42.7 33.7 9.0 Customer loans (net) RM m 35,901 28,851 24.4 35,901 33,029 8.7 Loans / Deposits 92.0 91.3 0.7 92.0 101.1 (9.1) NPL ratio 2.4 3.5 (1.1) 2.4 2.8 (0.4) 18
Thailand Summarised P/L 4Q10 3Q10 THB m THB m THB m THB m Net interest income 6,977 7,013 (0.5) 1,815 1,727 5.1 Fee and commission income 2,021 1,989 1.6 536 501 7.0 Other non-interest income 512 801 (36.1) 13 142 (90.8) Total income 9,510 9,803 (3.0) 2,364 2,370 (0.3) Less: Total expenses 6,442 6,404 0.6 1,733 1,608 7.8 Operating profit 3,068 3,399 (9.7) 631 762 (17.2) Less: Total impairment charges 1,048 1,578 (33.6) 190 292 (34.9) Add: Share of profit of associates 6 9 (33.3) 3 (3) >100.0 Net profit before tax 2,026 1,830 10.7 444 467 (4.9) Net profit before tax (S) 87 78 12.1 19 20 (4.0) 19
Thailand Key Financial Indicators 4Q10 3Q10 pt pt Net interest margin 3.45 3.80 (0.35) 3.32 3.51 (0.19) Non-NII / Total income 26.6 28.5 (1.9) 23.2 27.1 (3.9) Expense / Total income 67.7 65.3 2.4 73.3 67.8 5.5 Customer loans (net) THB m 158,439 137,547 15.2 158,439 142,576 11.1 Loans / Deposits 103.4 90.5 12.9 103.4 94.2 9.2 NPL ratio 5.2 6.1 (0.9) 5.2 5.8 (0.6) 20
Indonesia Summarised P/L 4Q10 3Q10 IDR b IDR b IDR b IDR b Net interest income 1,963 1,918 2.3 498 502 (0.8) Fee and commission income 418 370 13.0 124 99 25.3 Other non-interest income 214 279 (23.3) 54 53 1.9 Total income 2,595 2,567 1.1 676 654 3.4 Less: Total expenses 1,349 1,339 0.7 328 335 (2.1) Operating profit 1,246 1,228 1.5 348 319 9.1 Less: Total impairment charges 74 133 (44.4) 10 9 11.1 Net profit before tax 1,172 1,095 7.0 338 310 9.0 Net profit before tax (S) 175 153 13.9 49 46 5.2 21
Indonesia Key Financial Indicators 4Q10 3Q10 pt pt Net interest margin 6.40 6.40-6.05 6.60 (0.55) Non-NII / Total income 24.4 25.3 (0.9) 26.3 23.2 3.1 Expense / Total income 52.0 52.2 (0.2) 48.5 51.2 (2.7) Customer loans (net) IDR b 27,427 22,977 19.4 27,427 25,202 8.8 Loans / Deposits 96.8 87.6 9.2 96.8 99.5 (2.7) NPL ratio 2.0 3.0 (1.0) 2.0 2.4 (0.4) 22
Greater China Summarised P/L 4Q10 3Q10 S$ m S$ m S$ m S$ m Net interest income 97 118 (17.7) 23 24 (4.8) Fee and commission income 42 28 51.2 13 9 45.9 Other non-interest income 88 55 59.2 32 30 6.5 Total income 227 201 12.9 68 63 7.9 Less: Total expenses 115 106 8.3 35 27 28.8 Operating profit 112 95 18.1 33 36 (8.0) Less: Total impairment charges 8 14 (42.1) 7 (0) >100.0 Add: Share of profit of associates 1 1 >100.0 0 0 (0.7) Net profit before tax 105 81 29.3 26 36 (29.1) 23
Greater China Key Financial Indicators 4Q10 3Q10 pt pt Net interest margin 1.11 1.61 (0.50) 0.89 1.04 (0.15) Non-NII / Total income 57.1 41.2 15.9 66.6 62.2 4.4 Expense / Total income 50.5 52.7 (2.2) 51.6 43.2 8.4 Customer loans (net) S$ m 5,231 3,922 33.4 5,231 4,449 17.6 Loans / Deposits 91.5 91.3 0.2 91.5 87.9 3.6 NPL ratio 1.2 2.6 (1.4) 1.2 1.7 (0.5) 24
Strong Capital Position Capital Adequacy Ratios Total CAR 19.0 20.0 20.1 19.9 19.8 Tier 1 CAR Core Tier 1 CAR 14.0 11.9 14.9 15.1 15.1 15.3 ` 12.8 13.0 13.0 13.3 Core Tier 1 Capital Tier 1 Capital Dec'09 Mar'10 Jun'10 Sep'10 Dec'10 11,978 12,942 13,175 13,411 14,213 14,127 15,091 15,324 15,560 16,362 RWA 100,908 101,414 101,174 103,269 106,889 25
Special Dividend Recommended, in Addition to Final Dividend 12.3 10.0 45.0 40.0 40.0 40.0 16.4 20.0 20.0 20.0 2007 2008 Net Net dividend per per ordinary share ( ) ( ) Interim Final Special Payout amount () Payout ratio () 1,113 53 903 47 903 48 1,077 40 26
In Summary, Year Results Showed: Record NPAT of $2.7 billion Robust fee income alleviated pressure on NII Expenses well managed, continued to invest for future growth Investment in a regional franchise yielding results:- Delivered double-digit growth in Singapore and the key regions Cross-selling efforts boosted strong fee income growth Asset quality remained sound, NPL ratio low at 1.8 Balance sheet and capital position continued to be strong Final and special dividend recommended 27