United Overseas Bank Limited

Good morning and thank you for joining us. We hope everyone is staying safe and healthy. Today I would like to share four key messages to all of you. First key message, we have achieved strong first half this year, backed by economic recovery, strong customer franchise, diversified growth engines, and resilient portfolio. In the second quarter, we continue to build on our strong business momentum. First half profit rose 29% year-on-year to $2 billion, with healthy contributions across our core businesses. Loans grew 6% led by wholesale banking which had a record quarter. This was driven by rising trade and investment flows and capital market activities as we provide targeted sector solutions for our clients. Fee income rose 28% on the back of strong wealth management, loan related and fund management performance. If I break it down, the wealth management is up 32% year-on-year, loan related 33% year-on-year and fund management up 40% year-on-year. This will achieve despite uneven recovery across economies. Our diversified engines of growth have enabled us to deliver these results especially in markets where local community COVID cases are more contained. Even in countries with strict COVID restrictions our digital capabilities enable us to continue to serve customers and to acquire new customers. we continue to invest for example in the last quarter we launched new digital retail products such as simple invest and the response was overwhelmingly well received and we also onboarding capabilities in Malaysia and more to expect in the coming months Our solutions for corporates are gaining momentum. We also issue our first digital bond and are working with ecosystem players on various initiatives. We expect growth in ASEAN markets to improve as vaccination rate increases and this will further contribute to our performance. Our portfolio is resilient and balance sheet strong as we continue to support customers through difficult times. Having proactively set aside ample provisions in 2020, our total credit costs almost half. Message 2 We continue to support customers through transition out of COVID. as well as acquire new customers looking for support. We remain committed to working with governments across the region to provide liquidity support to affected customers and helping them to digitalize and transform for the future, especially for SMEs, the backbone of our economy. Since COVID started, we supported more than 1 million individuals and 20,000 SMB across the region. As the first bank to set up a restructuring task force, we proactively reach out to our customers with customized approaches that can support them through this period. Similar programs are also rolled out in the region. As government assistance programs become more targeted, the amount of loans under relief has declined to 17.5 billion or 6% of group loans. Message 3. We continue to push forward our sustainability agenda. At EOB, our growth has always been balanced with responsibility to do what is right for our customers and the community. We are making good progress through embedding ESG considerations in our strategies and initiatives. We have extended $13 billion of sustainable financing to our clients. and are on track to meet our goal of $15 billion, well ahead of our original target. We see huge opportunities in green trade finance, with more than $1 trillion trade flow through Singapore, of which we estimate more than $90 billion are eligible for green trade finance currently, and continue to serve customers towards responsible investing. Beyond financial targets, we are aiming for impact as a catalyst and enabler. We continue to develop holistic frameworks to support ecosystem players in transitioning towards sustainability. Message 4 We confirm a positive outlook for the rest of the year. Overall, we are optimistic on growth prospects as economies pick up pace in recovery as vaccination levels increase. For this year, we continue to expect profit to rebound, driven by high single-digit loan growth, backed by strong pipeline in corporate and institutional loans and mortgages. Double-digit Non-interest income growth driven by continual traction in loan, wealth and recovery in credit card fees. Actually no change to our previous guidance. Stable cost to income ratio, again that was guided previously, no change. And credit costs to be lower than 25 basis points. is an improvement from previous guidance in Q1, credit costs to be lower than 30 basis points. With our earnings normalising, backed by strong capital and liquidity positions, we will be resuming our 50% dividend payout ratio, translating to $0.60 for the first half. With countries speeding up their vaccination drive, we are optimistic that the situation will gradually pick up in Southeast Asia. We remain confident of the region's underlying prospects and ASEAN upside potential. We continue to invest and to innovate for the future. And we stand ready to support our customers with our strong foundation. Overseas Bank Limited Overseas Bank Limited Overseas Bank Limited Overseas Bank Limited Overseas Bank Limited

I understand most of you will need to rush off for another meeting, so let me keep this briefing as short as I can. The group achieved a strong first half profit of $2 billion, an increase of 29% year-on-year. Business momentum continued into the second quarter, supporting the $1 billion profit that we achieved last quarter. This is 43%, higher compared to a year ago, a testament to our customer franchise resiliency and the geographical strength. Quarter and quarter, NII was up 3% on steady loans growth as we continue to support our customers' funding needs as the economy improves. Corporate fees performed well with increased trade and investment transactions. On the other hand, wealth and fund management fees moderated towards the end of the second quarter. Overall, asset quality remained healthy as NPL ratio stayed at 1.5%, while total credit cost on loans eased to 20 basis points. With the lifting of the MAS dividend restrictions, we have reverted to a normalized 50% payout ratio. Together with the strong CET1 at 14.2%, proactive provisioning and stable funding position will continue to support our customers through to better times. With the uneven economic recovery across markets, we have been proactively engaging and supporting customers in their investment or business needs. Retail operating environment was challenging as we continue to reinvent ourselves to engage customers digitally With this, we managed to grow our wealthies to record levels. This helps offset the effect of margin compression. Wholesale saw strong growth, led by demand for financing advice and funding opportunities from corporate clients, especially in Singapore, Greater China and the developed markets. As our investments to strengthen connectivity deepen sectors, Global market operating profit was lower because interest rates were relatively less volatile this year. There were also less opportunities for bond sales. Our wholesale sector performed well. Our sector specialization, strong ASEAN footprint, and improved product capabilities allowed us to capture cross-border flows that are happening. Loans and trade-related fees rose 25% as customers increasingly leveraged our sector-specific insights and solutions. In particular, our financial institution groups registered a 16% income growth in banking, property funds, and financial sponsors, serving them with our strong structuring capabilities. Digital adoption by our customers by our corporate customers continue to grow, resulting in increased transactions and customer satisfaction. Similarly, our investments in our digital channels are gaining recognition by the market. Our knowledge of customer needs is evident as our AUM grew to $137 billion, a 7% year-on-year growth. Our mortgage sales per month is very strong, at 20% growth year-on-year. This reflects the increased activities in that sector recently. Growth is similarly seen across our key markets in Singapore, North Asia and ASEAN. Despite the environment, our regional franchise still managed to show a 2% year-on-year growth as we continue to support the real funding needs of our customers through these challenging times. I will skip the next point and let you read at your own leisure. Back to slide 8. On the net interest income, we grew 2% last year, largely due to loans growth of 6%. For the past three consecutive quarters, we managed to maintain a stable NIM, even as interest rates stayed low. Interest rates are likely to stay low in the near term. will continue to dynamically manage our balance sheet to keep NIMS stable. The first half fees income was at a new high of $1.2 billion. Wealth management fees reached a record level with returning investor confidence on market recovery. Loans-related fees were also at a new high, following strong demand for trade and investment transactions from corporate clients. Year-on-year, customer-related treasury income rose 9% on the back of improved business sentiment. On the other hand, non-customer trading income decreased year-on-year on exceptional gains on investment last year. Our costs are well under control. While total income grew 5% year-on-year, total expenses were stable at $2.1 billion. The cost-to-income ratio for the year improved about 2% to 43.8%. The overall asset quality of our loans portfolio remained resilient, with NPR ratio stable at 1.5%. The new NPAs were well within management expectations, and we have adequately provided for them. total credit costs eased to 20 basis points as credit outlook stabilizes. As such, we do not need to increase general allowances beyond the level that is required to support the new loans growth. The group's total allowance were at $5 billion, of which the bulk were in general allowances. With the pre-emptive general allowances made last year, NPA coverage is high at 110%. or 265% after taking collateral into account. Performing loans coverage stayed above 1%. The path to recovery is uneven across countries and there are pockets of vulnerable exposures. The strong reserve coverage gives us confidence to continue to support our customer to see through this pandemic. Loans momentum sustained well Increasing by 6% year-on-year. We are on track to deliver the high single-digit loans growth for the year. Deposits are also well managed and increased 5% alongside loans. CASA to total deposit ratio remains stable at 52.7%. Similarly, our liquidity positions is strong with LCR at 131% and NSFR at 123% that are well above the minimum regulatory environment. CT1 is also strong at 14.2%. With the lifting by MAS on its guide on dividend cap recently, the board declared an interim dividend of $0.60 per ordinary share. We reverted to a 50% payout ratio. Post-dividend, our capital position continues to remain strong. With our strong balance sheet, proactive provisioning and stable funding position, we remain committed to support our customers through to better times. With that, I conclude my presentation. Thank you.

Thank you, Mr. Lee. We'll now move on to the Q&A. Please use the raised hand function if you wish to ask a question. Do state your name and publication before asking your question. First question, can we invite Chris from Euromoney?