Left Brain Right B - the DBS Vickers Securities Equities Research

Income Statement (S$ m) Balance Sheet (S$ m)
Regional Equity Strategy 4Q 2009
UOB
FY Dec 2008A 2009F 2010F 2011F FY Dec 2008A 2009F 2010F 2011F
Net Interest Income 3,576 3,773 4,000 4,280 Cash/Bank Balance 20,290 20,884 22,346 23,910
Non-Interest Income 1,675 1,632 1,708 1,864 Government Securities 11,310 12,215 13,192 14,247
Operating Income 5,251 5,405 5,708 6,144 Inter Bank Assets 15,196 16,828 17,791 18,888
Operating Expenses (2,061) (2,288) (2,529) (2,796) Total Net Loans & Advs. 99,840 102,549 108,417 115,102
Pre-provision Profit 3,190 3,117 3,179 3,348 Investment 15,813 16,244 17,171 18,226
Provisions (807) (1,112) (799) (461) Associates 1,096 1,188 1,271 1,346
Associates 103 92 83 75 Fixed Assets 2,094 2,020 2,020 2,020
Exceptionals 0 0 0 0 Goodwill 4,211 4,211 4,211 4,211
Pre-tax Profit 2,486 2,097 2,464 2,961 Other Assets 13,091 5,127 5,421 5,755
Taxation (521) (398) (468) (563) Total Assets 182,941 181,266 191,839 203,706
Minority Interests (27) (42) (49) (59) Customer Deposits 118,171 126,443 135,294 144,765
Preference Dividend 0 0 0 0 Inter Bank Deposits 28,452 23,638 24,034 24,293
Net Profit 1,937 1,657 1,946 2,340 Debts/Borrowings 6,246 6,246 6,246 6,246
Net Profit bef Except 1,937 1,657 1,946 2,340 Others 14,353 6,850 7,153 8,062
Minorities 146 188 237 296
Shareholders' Funds 15,573 17,901 18,875 20,044
Total Liab& S/H’s Funds 182,941 181,266 191,839 203,706
Profitability & Efficiency Ratios (%) Financial Stability Measures (%)
FY Dec 2008A 2009F 2010F 2011F FY Dec 2008A 2009F 2010F 2011F
Margins, Costs & Efficiency
Balance Sheet Structure
Yld. On Earnings Assets 4.36 3.25 3.28 3.29 Loan-to-Deposit Ratio 86.3 83.3 82.3 81.5
Avg Cost Of Funds 2.14 1.04 1.08 1.07 Net Loans / Total Assets 54.6 56.6 56.5 56.5
Spread 2.21 2.20 2.20 2.22 Investment / Total Assets 8.6 9.0 9.0 8.9
Net Interest Margin 2.27 2.28 2.30 2.32 Cust . Dep./Int. Bear. Liab. 77.3 80.9 81.7 82.6
Cost-to-Income Ratio 39.2 42.3 44.3 45.5 Interbank Dep / Int. Bear. 18.6 15.1 14.5 13.9
Employees ( Year End) 24,323 26,756 29,431 32,374 Asset Quality
Effective Tax Rate 21.0 19.0 19.0 19.0 NPL / Total Gross Loans 2.0 2.7 3.0 2.9
Business Mix NPL / Total Assets 1.1 1.6 1.7 1.7
Net Int. Inc / Opg Inc. 68.1 69.8 70.1 69.7 Capital Strength
Non-Int. Inc / Opg inc. 31.9 30.2 29.9 30.3 Total CAR 12.5 14.9 15.2 15.2
Fee Inc / Opg Income 20.9 20.0 20.1 20.1 Tier-1 CAR 8.7 10.6 10.7 10.9
Oth Non-Int Inc/Opg Inc 11.0 10.2 9.9 10.2 Growth
Profitability Total Net Loans 8 3 6 6
ROAE Pre Ex. 12.6 10.7 11.4 12.9 Customer Deposits 10 7 7 7
ROAE 12.6 10.7 11.4 12.9
ROA Pre Ex. 1.1 0.9 1.0 1.2
ROA 1.1 0.9 1.0 1.2
Quarterly / Interim Income Statement (S$m)
FY Dec 3Q2008 4Q2008 1Q2009 2Q2009
Net Interest Income 893 957 949 908
Non-Interest Income 320 391 435 550
Operating Income 1,213 1,348 1,384 1,458
Operating Expenses (507) (533) (493) (523)
Pre-Provision Profit 706 815 891 935
Provisions (158) (381) (378) (465)
Associates 32 14 10 32
Exceptionals 0 0 0 0
Pretax Profit 580 448 523 502
Taxation (97) (109) (112) (23)
Minority Interests (9) (7) (2) (8)
Net Profit 475 332 409 470
Rolling Forward P/BV Band
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
97 98 99 00 01 02 03 04 05 06 07 08 09
+2 SD
+1 SD
Mean
-1 SD
-2 SD
Source: Company, DBS Vickers
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