Investor Presentation Steady Business Momentum Backed by Solid - PowerPoint PPT Presentation

UOB Group Fixed Income Investor Presentation Steady Business Momentum Backed by Solid Balance Sheet October 2019 Disclaimer: The material in this presentation contains general background information about United Overseas Bank Limited (“UOB”) and its activities as at the date of the presentation. The information is given in summary form and is therefore not necessarily complete. Information in this presentation is not intended to be relied upon as advice or as a recommendation to investors or potential investors to purchase, hold or sell securities and other financial products and does not take into account the investment objectives, financial situation or needs of any particular investor. When deciding if an investment is suitable, you should consider the appropriateness of the information, any Private & Confidential relevant offer document and seek independent financial advice. All securities and financial product transactions involve risks such as the risk of adverse or unanticipated market, financial or political developments and currency risk. UOB does not accept any liability including in relation to the use of the material and its contents.

Agenda 1. Overview of UOB Group 2. Strong UOB Fundamentals 3. Macroeconomic Outlook 4. Regulatory Developments 5. Resilience of the Singapore Housing Market Appendix: A. Overview of Our Cover Pool and Covered Bond Program B. Latest Financials C. Our Growth Drivers 2

Overview of UOB Group 3

UOB Overview Founding Key Statistics for 1H19 Founded in August 1935 by a group of Chinese ■ Total assets : SGD406b (USD300b 1 ) businessmen and Datuk Wee Kheng Chiang, ■ Shareholders’ equity : SGD39b (USD29b 1 ) grandfather of the present UOB Group CEO, Mr. ■ : SGD273b (USD202b 1 ) Gross loans Wee Ee Cheong ■ Customer deposits : SGD305b (USD225b 1 ) ■ Loan/Deposit ratio : 88.5% ■ Net stable funding ratio : 108% ■ Expansion Average all-currency liquidity : 147% 2 coverage ratio UOB has grown over the decades organically and ■ Common Equity Tier 1 CAR : 13.9% through a series of strategic acquisitions. It is today a ■ Leverage ratio : 7.5% leading bank in Asia with an established presence in ■ Return on equity 3, 4 : 12.0% the Southeast Asia region. The Group has a global network of more than 500 branches and offices in 19 ■ Return on assets 4 : 1.12% countries and territories. Return on risk-weighted assets 4 : 1.95% ■ ■ Net interest margin 4 : 1.80% ■ Non-interest income/ : 35.0% Total income ■ Cost / Income : 44.1% ■ Non-performing loan ratio : 1.5% Note: Financial statistics as at 30 June 2019. ■ Credit Ratings Moody’s 1. USD 1 = SGD 1.3528 as at 30 June 2019. S&P Fitch 2. Average for 2Q19. Issuer Rating AA – AA – Aa1 3. Calculated based on profit attributable to equity holders (Senior Unsecured) of the Bank, net of perpetual capital securities Outlook Stable Stable Stable distributions. 4. Computed on an annualised basis. Short Term Debt P-1 A-1+ F1+ 4

A Leading Singapore Bank; Established Franchise in Core Market Segments Group Retail Group Wholesale Banking Global Markets    Best Retail Bank in Singapore 1 Best SME Banking 1 Strong player in Singapore dollar treasury instruments   Strong player in credit cards and Seamless access to regional private residential home loan network for our corporate clients business UOB Group’s recognition in the industry UOB’s sizeable market share in Singapore SGD loans SGD deposits 41% Bank of the Excellence in Mobile 23% Best Retail Bank 1 21% Banking – Overall, Year, Singapore, 2018 33% 58% Best SME Bank 1 2015 Source: Company reports. 1. The Asian Banker “International Excellence in Retail Financial Service Awards”: Note: The resident portion of loans and advances is used as 2019 (Best SME Bank in Asia Pacific & Singapore), 2017 & 2016 (SME Bank of a proxy for total SGD loans in Singapore banking system. the Year), 2014 (Best Retail Bank in Asia Pacific & Singapore). Source: UOB, MAS data as of 30 Jun 19 5

Proven Track Record of Execution  UOB Group’s management has a proven track record in steering the Group through various global events and crises.  Stability of management team ensures consistent execution of strategies  Disciplined management style which underpins the Group’s overall resilience and sustained performance NPAT Trend 2018; $4,008m Acquired Acquired ICB Buana in 2005 in 1987 2014; $3,249m Acquired BOA Acquired FEB 2010; $2,696m in 2004 in 1984 Acquired OUB Acquired LWB in 2001 in 1973 2007; $2,109m Acquired Acquired CKB UOBR in 1999 in 1971 2000; $913m 1980; $92m 1990; $226m 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 Note: Bank of Asia Public Company Limited (“BOA”), Chung Khiaw Bank Limited (“CKB”), Far Eastern Bank Limited (“FEB”), Industrial & Commercial Bank Limited (“ICB”), Lee Wah Bank Limited (“LWB”), Overseas Union Bank Limited (“OUB”), Radanasin Bank Thailand (“ UOBR ”). 6

Expanding Regional Banking Franchise Extensive Regional Footprint with c.500 Offices Profit Before Tax by Region (SGD m) MYANMAR GREATER CHINA 2 offices 28 offices 1 39% of VIETNAM THAILAND Group profit 2 offices 507 155 offices before tax 443 PHILIPPINES 469 77 1 office 367 282 301 MALAYSIA 419 39% of 366 300 29 48 offices Group profit INDONESIA 600 218 71 61 193 175 181 offices before tax 581 537 548 259 SINGAPORE AUSTRALIA 304 71 offices 4 offices 37 160 280 2,917  Most diverse regional franchise among Singapore 2,491 2,363 2,364 banks; effectively full control of regional subsidiaries 1,620  Integrated regional platform improves operational efficiencies, enhances risk management and provides faster time-to-market and seamless customer service 2015 2016 2017 2018 1H19  Organic growth strategies in emerging/new markets of Singapore Malaysia Thailand China and Indo-China Indonesia Greater China Others Established regional network with key Southeast Asian pillars, supporting fast-growing trade, capital and wealth flows 1. UOB owns c13% in Hengfeng Bank (formerly Evergrowing Bank) in China. 7

Strong Capital and Leverage Ratios Reported Common Equity Tier 1 CAR, Tier 1 CAR and Total CAR 23.2 23.2 24.2 20.2 19.5 (Common Equity 18.3 17.3 17.2 17.2 16.8 16.8 16.8 16.5 16.0 16.2 16.2 15.9 15.8 15.4 15.1 15.1 14.9 Tier 1 CAR; 14.4 14.3 14.5 13.9 14.0 13.6 13.6 13.7 13.5 13.5 12.9 12.8 12.5 12.0 11.9 10.8 10.4 Tier 1 CAR; and Total CAR in %) 1 1 BCA BBL MBB OCBC HSBC UOB DBS SCB CIMB BOA Citi CBA NAB Return on 16.8% 8.8% 9.7% 11.7% 10.2% 12.0% 13.7% 12.0% 9.2% 11.5% 10.2% 13.6% 10.5% Average Equity 2 Reported Leverage Ratio 3 16.8% 7.5% 7.5% 6.9% 6.8% 6.4% 5.6% 5.5% 5.4% 5.3% 1 1 BCA UOB OCBC DBS BOA Citi CBA NAB HSBC SCB UOB is among the most well-capitalised banks, with capital ratios comfortably above regulatory requirements and high compared with some of the most renowned banks globally Source: Company reports. Banks’ financials were as of 30 Jun 19, except for those of HSBC, CIMB, Maybank and NAB (which were as of 31 Mar 19) and CBA (which were as of 31 Dec 18). 1. NAB’s and CBA’s CARs are based on APRA’s standards. Their internationally comparable CET1 CAR was 14.6% (31 Mar 19) and 16.5% (31 Dec 18), respectively. 2. Computed on an annualised year-to-date basis. 3. BBL, CIMB and MBB do not disclose their leverage ratio. 8

Competitive Against Peers Standalone Efficient Cost Competitive Well-Maintained ROAA 1 Strength Management Liquidity Moody’s baseline Costs/income Return on average Loan/deposit Moody’s S&P Fitch credit assessment ratio assets 1 ratio AA – AA – UOB Aa1 a1 44.1% 1.12% 88.5% AA – AA – OCBC a1 42.4% 1.27% Aa1 87.6% AA – AA – DBS a1 41.9% 1.17% Aa1 89.6% AA – 57.0% 0.74% A2 A HSBC a3 74.1% SCB 67.7% 0.43% A2 BBB+ A+ baa1 63.7% A – CIMB 55.3% 0.88% 91.4% Baa1 n.r. baa2 47.9% 0.93% A – A – MBB 92.4% A3 a3 45.3% 1.19% BBL baa1 85.7% Baa1 BBB+ BBB+ BBB – 46.2% 3.70% 79.0% BCA baa2 Baa2 n.r. 57.5% 1.24% A – 69.4% BOA a3 A2 A+ 56.5% 0.98% Citi 64.7% baa1 A3 BBB+ A 44.4% 0.94% 118.3% AA – AA – CBA Aa3 a2 47.0% 0.66% 142.6% AA – AA – NAB a2 Aa3 Source: Company reports, Credit rating agencies (updated as of 2 Aug 19). Banks’ financials were as of 30 Jun 19, except for those of HSBC, CIMB, Maybank and NAB (which were as of 31 Mar 19) and CBA (which were as of 31 Dec 18). 1. Computed on an annualised year-to-date basis. 9