About UOB
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Chairman Emeritus and
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Balancing Growth with Stability for the Long Term / Financial Highlights
Financial Highlights
Robust performance in core franchise and resilient asset quality
Net Profit After Tax1 and Return on Equity1
Core net profit for FY22 grew 18% to a new high of $4.8 billion from a year ago, boosted by strong net interest income and stable asset quality. Correspondingly, return on equity increased to 11.9% for the year.
1 Excluding one-off expenses
Net Profit After Tax
$4.8
billion
+ 18%
Return on Equity
11.9
%
+ 1.7% pt
Net Interest Income and Margin
Net interest income increased 31% to $8.3 billion against last year. This was led by robust net interest margin expansion of 30 basis points to 1.86% on rising interest rates and loan growth of 3%.
Net Interest Income
$8.3
billion
+ 31%
Net Interest Margin
1.86
%
+ 0.30% pt
Net Fee and Commission Income
Despite credit card fees registering a double-digit growth from higher customer spending and the consolidation of Citigroup’s credit card business, net fee income declined 9% to $2.1 billion as muted investor sentiments weighed on wealth and fund management fees.
Fee Income
$2.1
billion
- 9%
Net Fee/Total Income
Ratio
Ratio
19
%
- 5% pt
Trading and Investment Income
Trading and investment income increased 6% to $0.8 billion. Customer-related treasury income grew 20% year-on-year driven by hedging demands and higher investment activities amid market volatility. This was partly offset by impact on proprietary hedges and lower valuation on investments.
Trading and Investment Income
$0.8
billion
+ 6%
Customer-related Income/Trading and Investment Income Ratio
85
%
+ 11% pt
Operating Expenses1
Total core operating expenses rose 16% to $5.0 billion. With strong income growth and cost discipline, the core cost-to-income ratio improved 0.8% points to 43.3% for the year.
1 Excluding one-off expenses
Operating Expenses
$5.0
billion
+ 16%
Cost/Income Ratio
43.3
%
- 0.8% pt
Impairment Charge on Loans
Total allowance on loans increased 5% to $0.6 billion, due mainly to higher specific allowance on a few non-systemic accounts cushioned by the release of pre-emptive general allowance.
Total credit costs on loans maintained at 20 basis points.
Total credit costs on loans maintained at 20 basis points.
1 Excluding one-off expenses
Impairment Charge
on Loans
on Loans
$0.6
billion
+ 5%
Total Credit Costs
20
bps
unchanged
Staying focused on our regional strategy and customer centricity
*Income derived from the treasury flow from Group Retail and Group Wholesale Banking customers is reflected in the income of the respective business segments.
Operating profit by business segment
Group Retail
Compared with a year ago, operating profit grew 7% to $1.8 billion. Excluding one-off costs associated with the Citigroup acquisition, core operating profit would have registered a 23% growth. Income advanced 16% to cross the $4 billion mark, buoyed by wider margin and campaign-led deposit growth, along with stronger card activities fuelled by consumer spending and travel surge across the region, coupled with the maiden inclusion of Citigroup’s consumer businesses in Malaysia and Thailand since November 2022. These were partly tempered by softer wealth income as global uncertainties clouded investor appetite. Core operating expenses climbed 10% largely from revenue-related costs and continued investments in technology, with the one-off costs contributing another 15%.
Group Wholesale Banking
Operating profit reached $4.7 billion in 2022, representing a strong growth of 27% compared with 2021, boosted by broad-based revenue streams. Income growth of 23% to $6.2 billion was powered by margin expansion and higher client activities across investment banking, transaction banking and treasury customer flows. Expenses increased 13% to $1.5 billion, backed by ongoing investments in people, technology and product capabilities.
Global Markets
Operating profit in 2022 stood at $301 million, 20% down from a year ago. This reflected the impact of funding costs rising faster and steeper than yields on securities, alongside higher expenses primarily from staff and technology. Partly countering this was the doubling of non-interest income, fuelled by stronger performance in foreign exchange and commodity trading on the back of financial market volatility.
Operating Profit1 by Geographical Segment
Overseas franchise provided diversification and cross-border connectivity
$ million
FY2022
FY2021
YoY (%)
Singapore
3,824
2,805
36
Rest of Southeast Asia
1,427
1,327
8
Malaysia
744
689
8
Thailand
425
407
5
Indonesia
233
221
5
Others
25
10
>100
North Asia
670
605
11
Rest of the World
637
740
(14)
Total
6,559
5,476
20
Customer Loans2
Customer Deposits
Singapore
Operating profit surged 36% against last year to $3.8 billion, exhibiting franchise strength as one of Singapore’s incumbent banks in delivering wider margins amid rising interest rates, coupled with healthy asset growth.
Rest of Southeast Asia
The Rest of Southeast Asia franchise showed a strong growth of 8% against last year, benefitting from wider margins from Malaysia, Indonesia and Thailand.
North Asia
Operating profit grew 11% against last year, driven by higher investment activities and stronger trading results from Greater China.
Rest of the World
Operating profit narrowed 14% to $0.6 billion, mainly from lower valuation on investments.
1
Excluding one-off expenses
2
Loans by geography are classified according to where credit risks reside, largely represented by the borrower's country of incorporation/operation for non-individuals and residence individuals
Strong balance sheet with stable credit outlook
Asset Quality
The Group’s overall loan portfolio remained stable with non-performing loan (NPL) ratio steady at 1.6%.
Total allowance for non-impaired assets remained adequate at $2.9 billion with prudent coverage for performing loans maintained at 0.9%.
Total allowance for non-impaired assets remained adequate at $2.9 billion with prudent coverage for performing loans maintained at 0.9%.
Total Allowance
on Assets
on Assets
$5.0
billion
+ 3%
NPL Ratio
1.6
%
unchanged
Funding and Liquidity Ratios
The Group’s liquidity and funding positions strengthened with the average all-currency liquidity coverage ratio (LCR) at 140% and net stable funding ratio (NSFR) at 116%, well above the minimum regulatory requirements.
LCR
140
%
+ 5% pt
NSFR
116
%
unchanged
Capital Adequacy Ratio (CAR)
Post Citigroup acquisition, the Group’s capital position remained healthy with Common Equity Tier 1 Capital (CET1) ratio and Total CAR at 13.3% and 16.7% respectively, well above the Monetary Authority of Singapore’s minimum requirement.
CET1 CAR
13.3
%
- 0.2% pt
Total CAR
16.7
%
+ 0.1% pt