Overview

Wong Kim Choong

Chief Executive Officer

UOBM Corporate Day

4 - 5 September 2014

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.
Agenda

1 INTRODUCTION TO UOBM

2 FINANCIAL HIGHLIGHTS

3 GROWTH DRIVERS

2
 Long and Stable Presence in Malaysia – 63 Years
We’ve Been Here Since 1951

UOBM and
OUB
(Malaysia)
Acquired UOBM Berhad
Acquired incorporated
Lee Wah merged into
Chung Khiaw as a
Bank and its one legal
Launched Bank Limited subsidiary of
“Why Woman branch entity
& its branch UOB Limited
Introduced need Banking network in
network in
“Mobile Bank” - Account” Singapore &
Singapore,
converted bus campaign and Malaysia
1st branch Malaysia &
to provide “Lady-in-Pink”
opened Hong Kong
banking services
in Ipoh,
services
Malaysia

1951 1958 1962 1971 1972 1993 2002 3

Long and Stable Presence in Malaysia – 63 Years
Stellar Track Record Over the Years

Average ROE from 2001 to 2013 17.5%

1,342
1,223
1,103

830
660 688
586
479 517 497 518
425

211

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Net Profit Before Tax (RM Mil)
2002: Merger with 2007-2008:
Overseas Union Global Financial
Bank (M) Berhad Crisis 4
Largest Network for Foreign Banks in Malaysia

Branches are Strategically Positioned In Line with the Distribution of Economy

State GDP (%) Branches Perlis

Selangor 24 11 Kedah
Kelantan
Kuala Lumpur 15 6 Penang
Terengganu Sabah
Sarawak 10 4
Perak
>70%
Johor 9 6 Pahang
Selangor
Pulau Pinang 7 4 Sarawak
Kuala Lumpur
Sabah 6 3 Negeri Sembilan
Perak 5 1 Melaka
Johor
Pahang 4 3
Others 20 7

Mobile Sales Internet Banking

Force

Self-Service Phone Banking

Kiosk Reaching out to customers
through our multi-channels
Source: Department of Statistics, Malaysia (2012) 5
Extensive and Customised Retail Product Suites
1 2 3
Tailored products for Strong in consumer Simple & convenient
affluent segment finance products products for businesses

 Affluent segment propositions  Easy and instant property  Easy application, fast approval
including tailored banking financing process process and 24/7 online banking
products plus wealth  Attractive reward program and services for your business needs
management and bancassurance extensive merchant campaigns

Visa Infinite & P. Preferred Platinum Property Financing

High Yield Account

Enjoy up to 3.38% p.a.
With UOB High Yield Account

Leveraging on strategic partners to provide

UOB Lady’s Card One Card
insurance & investment solutions

VOX

6
Building Commendable Traction in the
Wholesale Banking Space
Local Deals Regional Deals

Links Bidco S.A.R.L.

(A consortium comprising
EPF, Och-Ziff fund and
Sapura Kencana Petroleum Bousted Holding Berhad Indera Persada Sdn Bhd Moon Park Capital Partners)
Berhad

RM1,200 Million
USD 5,000 Million JUNIOR SUKUK PROGRAMME RM280 Million GBP 405 Million
MULTI-CURRENCY FACILITIES TRANCHE 1 of RM340,000,000 Fixed Rate Serial Bond SYNDICATED FACILITY
TRANCHE 2 of RM343,000,000

Mandated Lead Arranger Joint Lead Manager

March 2014 December 2013 September 2013 September 2013

Logistics Holdings Malaysian

Berhad Conglomerate
Development of Hotels
Armada Balnaves Pte Ltd Quill Retail Mall Sdn. Bhd. in Thailand

RM 850 Million
RM176.3 Million US$ 198 Million NOMINAL VALUE
TO FINANCE ACQUISITION OF SYNDICATED FACILITY COMMERCIAL PAPER/MEDIUM THB 1,500 Million
ASSET TERM NOTE PROGRAMME TERM LOAN FACILITY

RM700 Million
FINANCIAL GUARANTEE
Lead Adviser Mandated Lead Arranger Mandated Adviser
December 2013 April 2013 March 2013 March 2014 7
Top Foreign Bank in Loans and Deposits
Staying Ahead of Other Foreign Peers with
>5% market share in loans and >4% market share in deposits
Gross Loan as of 1Q2014 Non Bank Deposit as of 1Q2014
RM billion RM billion

Maybank 233 Maybank 360

Public Bank 212 Public Bank 239

CIMB Bank 142 CIMB Bank 195

RHB Bank 113 RHB Bank 139

Hong Leong Bank 98 Hong Leong Bank 128

AmBank 87 AmBank 90

UOBM 63 UOBM 70

OCBC Bank 59 OCBC Bank 67

HSBC Bank 44 HSBC Bank 61

Affin Bank 37 Affin Bank 45

Standard Chartered Bank 34 Alliance Bank 39

Alliance Bank 32 Standard Chartered Bank 39

Citibank 21 Citibank 26
0 50 100 150 200 250 0 50 10
0 15
0 20
0 25
0 30
0 35
0 40
0

Top 13 out of 27 Commercial banks (include Islamic banks) in Malaysia; Source: Bank Negara Malaysia monthly statistical bulletin and banks’ financial statement) as at 1Q2014 8
Notable Awards And Recognition
Wholesale Bank
GLOBAL BANKING &
FINANCE REVIEW
AWARDS
 Best Commercial Bank
Malaysia (2013)
AWARD OF
DISTINCTION
 Lead Manager Award by
Number of Issues – 3rd (2014)
 BluePrint Award for New
Structured Finance Benchmark
Deal (2013)
CASH MANAGEMENT
AWARDS
 Best Foreign Cash Mgmt Bank
(2013 & 2014)
 Best Foreign Domestic Cash
Mgmt Services (2013 & 2014)
 Best Foreign Cross-Border
Cash Mgmt Services (2013 &
2014)
ASSET ASIAN
AWARDS
 Rising Star Cash Management
Bank, Malaysia (2012)
 Rising Star Trade Finance
Bank, Malaysia (2012)
Retail Bank
MALAYSIA BANK SAHABAT SME
AWARDS NEGARA AWARD
 Highest Payment Volume  Sahabat SME Negara Award
Growth – Total Credit (2014) 2013 by SMI Association of
Malaysia
 Highest Payment Volume
Growth – UOB Visa Classic
(2013 & 2014)
 Best VISA Credit Card Launch
for UOB Infinite Card (2013)
EDGE-LIPPER FUND
MALAYSIA FUND AWARDS
AWARDS
 Best Fund over 5 Years –  MYR Allocation (2013)
Equity Malaysia (2012)
 OSK-UOB KidSave Trust
For AMB Value Trust Fund
(2013)
 Best Fund over 10 Years –
Mixed Asset MYR Balanced
Malaysia (2012) For OSK-UOB
KidSave
9
Agenda

1 INTRODUCTION TO UOBM

2 FINANCIAL HIGHLIGHTS

3 GROWTH DRIVERS

10
Strong Fundamentals

 Strong profit track record through various global events and

crisis

PROVEN  Delivered record Net Profit Before Tax of RM1,342m for

TRACK FY2013
RECORD  Key contributor to UOB Group - 15% of UOB Group’s NPBT for
FY2013
 Top foreign bank in Customer Loans and Non Bank Deposits

 Asset quality remained sound with Gross NPL ratio stable at

1.7%
 Collective impairment to loans coverage at 1.23%, above
PRUDENT regulatory requirement
MANAGEMENT
OF CAPITAL,  LDR at 89% and LCR comfortably above regulatory guidance
LIQUIDITY &  CASA mix grew from 25% in 2013 to 28% in 1H14
BALANCE SHEET
 Long term RAM Rating for UOBM – AAA since 2012
 Strong capital ratios with CET1 CAR at 13.4% and Total CAR
ratio of 16.0%
11
Consistent Track Record
Income Net Profit Before Tax
Unit: RM Million / Ratio% Unit: RM Million
31.7% 32.7% 31.7%
29.7% 29.8% 29.1% 18%
28.4%
CAGR 1,342
15%
1,223
CAGR 1,103
17% 2,323
CAGR 2,135 830
1,874 688 673 695
1,590
1,350
1,110 1,194

558 677 758

402 451 352 347

2009 2010 2011 2012 2013 1H13 1H14 2009 2010 2011 2012 2013 1H13 1H14
Non NII Total Income Non NII Ratio

Expenses and Cost to Income Ratio Shareholder’s Funds and ROE

Unit: RM Million / Ratio% Unit: RM Million / Ratio%
39.1% 18.3% 17.8% 18.3%
37.2% 37.2% 37.1% 17.6%
34.8% 16.9%
34.1% 34.5% 16.1% 16.0%

13% 16% 6,556

6,272
CAGR 809 CAGR
729 5,569 5,759
695
4,865
591
502 467 4,242
383 3,496

2009 2010 2011 2012 2013 1H13 1H14 2009 2010 2011 2012 2013 1H13 1H14
Expenses CIR Shareholder's Funds ROE
 Source: Annual reports and financial statements
12
Strong Growth in Loans
Total Assets Gross Loans and NIM
Unit: RM Billion Unit: RM Billion / Ratio%
2.92%
20%
2.65% 2.65%
90.0 91.0
CAGR 86.0
80.4 2.19%
2.09% 2.12% 2.11%
69.0
22%
43.0 50.9 64.6
CAGR 62.3 58.8
55.9
47.7
35.2
28.5

2009 2010 2011 2012 2013 1H13 1H14 2009 2010 2011 2012 2013 1H13 1H14
Gross Loans NIM

Gross Loans and Market Share – 1Q14 Gross Loans and Market Share Trend
Unit: RM Billion / Ratio% Unit: RM Billion / Ratio%
7th 5.1% 5.1% 5.1%
18.8%17.1% 4.8%

11.5% 4.0%
9.1% 7.9% 3.7%
7.0% 22%
5.1% 4.7% 3.5%
233 3.0% 2.8% 2.6% 1.7% CAGR
212 63.2
62.3
55.9
142 47.7
113 98 35.2
87 28.5
63 59 44 37 34 32 21

MBB PBB CIMB RHB HLB AmBank UOBM OCBC HSBC Affin SCB Alliance CITI 2009 2010 2011 2012 2013 1Q14
(M) (M) (M) (M) Gross Loans Market Share
Gross Loans Market Share
 Includes Commercial banks and Islamic banks where applicable
 Source: Bank Negara Malaysia monthly statistical bulletin and banks’ financial statements
13
Pacing Deposit Growth with Loan Growth
Non Bank Deposits and LDR % * CASA Mix
Unit: RM Billion / Ratio% Unit: RM Billion / Ratio%
27.6%
89.0% 23.9% 25.4%
86.8% 23.8%
85.9% 86.3% 86.3% 85.8% 23.1%
81.8% 20.8% 20.6%

22% 24%
CAGR 69.3 69.7
65.6 65.7 CAGR
19.2
52.6 17.6
15.2
13.5
39.0 11.0
9.3
31.6 7.5

2009 2010 2011 2012 2013 1H13 1H14 2009 2010 2011 2012 2013 1H13 1H14
Non Bank Deposits LDR CASA CASA Mix
* LDR % include Fund for Small and Medium Industries (FSMI) deposits

Non Bank Deposits and Market Share – 1Q14 Non Bank Deposits and Market Share Trend
Unit: RM Billion / Ratio% Unit: RM Billion / Ratio%
7th
23.7% 4.8% 4.6% 4.6%
4.2%
15.8% 3.5%
12.8% 3.1%
360 9.2% 8.5%
6.0% 4.6% 4.4% 22%
4.0% 3.0% 2.6% 2.6%
1.7% CAGR
239
195 65.6 69.3 69.8
139 128 52.6
90 39.0
70 67 61 31.6
45 39 39 26

MBB PBB CIMB RHB HLB AmBank UOBM OCBC HSBC Affin Alliance SCB CITI 2009 2010 2011 2012 2013 1Q14
(M) (M) (M) (M) Non Bank Deposits Market Share
Non Bank Deposits Market Share
 Includes Commercial banks and Islamic banks where applicable
 Source: Bank Negara Malaysia monthly statistical bulletin and banks’ financial statements 14
Consistent Asset and Funding Mix in the Last
5 Years
Strengthening our Balance Sheet

Others Securities Others

Securities 4% 8% 3%
Interbank
16% 1%
BUILDING CUSTOMER
Interbank
FRANCHISE 1%
Cash + Central
• Disciplined approach Bank
Cash + Central 18%
to credit growth in Bank
Net Loans Net Loans
target segments 14%
65% 70%

STABLE FUNDING
BASE ASSET’S
• Focus on stable Others Shareholders’ Others
deposits Shareholder’s 9% Equity 6%
7%
Equity
• CASA mix has 8% Debts Issued
1%
improved to 28%,
above industry 26% Bank Bank
Deposits Deposits
• LDR at 89%* as at 9% 9%
1H14 Non Bank Non Bank
Deposits Deposits
74% 77%

LIABILITIES

2009 1H 2014

15
 Resilient Asset Quality and
Strong Capital Position
Gross NPL Loan Loss Provision to NPL Coverage and
Collective Impairment to Loans Coverage
Unit: RM Billion / Ratio% Unit: Ratio %
3.6%
93.3% 89.8% 93.9%
84.1% 87.7%
2.5%
70.4% 73.4%
1.7% 1.8% 1.7% 1.7% 1.7%

1.1 1.54%
1.0 1.0 1.1 1.0
0.9 0.8
1.17% 1.23%
1.03% 1.00% 1.05%
0.95%

2009 2010 2011 2012 2013 1H13 1H14 2009 2010 2011 2012 2013 1H13 1H14
Gross NPL % Gross NPL
LLP (%) : (Individual Impairm ent + Collective Impairment) / Non Perform ing Loans
CIP (%) : Collective Im pairment / (Gros s Loans - Individual Impairm ent)

CET1 and Total CAR Risk-weighted Assets (RWA) Distribution

Unit: Ratio % Unit: Percentage
16.9%
16.4% 16.0%
14.9% 14.9% RWA 2009 2010 2011 2012 2013 1H13 1H14
14.4% 13.9%
Credit risk 97% 85% 88% 87% 88% 88% 88%
14.3%* 14.1%
* 13.3% 13.4% Operational risk 0% 9% 9% 9% 10% 9% 10%
13.1% 12.7%* 12.3%
Market risk 2% 2% 2% 2% 2% 3% 2%
Others * 0% 4% 1% 1% 0% 0% 0%
Basel I Basel II Basel III
Total 100% 100% 100% 100% 100% 100% 100%

2009 2010 2011 2012 2013 1H13 1H14

* Others consists of large exposure for equity holdings RWA and additional
*Core Capital / CET1 Total CAR
RWA due to capital floor
 Source: Annual reports and financial statements 16
Agenda

1 INTRODUCTION TO UOBM

2 FINANCIAL HIGHLIGHTS

3 GROWTH DRIVERS

17
Agenda

1 INTRODUCTION TO UOBM

2 FINANCIAL HIGHLIGHTS

3 GROWTH DRIVERS

18
Major Trends Shaping Malaysia’s
Banking Landscape
• Given the promising 1H growth and robust outlook ahead, FY real 2014 GDP growth
1 MALAYSIA- is still healthy estimated between 5.5% to 6% by various analysts
ON A STEADY
• Private investment ramping momentum driven by ETP stimulus; primarily in the Oil &
GROWTH PATH Gas, Infrastructure, Manufacturing sectors, etc

2 RESILIENT • Responsible financing guidelines tighten; coupled with RPGT, removal of DIBS and
raising of ceiling for property ownerships to preserve household sector resilience
FINANCIAL
• More stringent capital requirements under Basel III
SYSTEM

• The reality on the ground is that prices are rising, largely due subsidy rationalization
3 effort - fuel price hike in Sept 13, abolishment of sugar subsidies in Oct 13, electricity
RISING COSTS
tariff hike in Jan 14. GST implementation by April 2015
OF LIVING
• Inflation rate is recorded at 3.3% in June 2014

VS
• Despite rising cost of living, consumer spending remains stable attributed by:
4 STABLE • Low unemployment rate of 2.9%
EMPLOYMENT & • Private sector average wage growth of 6.6% in 2013 (6% in 2012)
INCOME RATE • Average mean household income growth of 7.7% between 2009 to 2012
• Wealth factor from rising asset price

• Increasing working population with higher propensity to spend (~51% in 2009 to

5 YOUNG & ~56% in 2013). The urban population is also rising from 71% in 2009 to 74% in 2013
GROWING
• 61% of the working aged population is Gen X and Y. Consumer habits of these age
DEMOGRAPHIC groups will increasingly become the mainstay of Malaysia’s household spending

19
UOBM Growth Drivers

20
THANK YOU

21